Is Your Mortgage Interest Really Deductible?
Updated for 2008 numbers and added state tax field
Congress is still debating whether to reduce the highly prized mortgage interest deduction which every realtor will tell you saves you a ton of money. The reality is that for many people with loan balances smaller than $200,000 this will really not effect them very much. People have an inflated perception on how much they are saving from the deduction. In 2008 the standard deduction for a married couple has grown to $10,900 which is more than many middle income households pay in interest and property tax per year. This calculator calculates how much federal income tax you save now from your itemized deductions (mortgage interest, property tax, charitable contributions, etc.) compared with the standard deduction.
Your Adjusted Gross Income:
$
Number of Personal Exemptions:
1
2
3
4
5
6
(Typically 1 per person in a household)
Your Annual Mortgage Loan Interest:
$
Your Annual Equity Loan Interest:
$
Your Mortgage Point Interest:
$
Your real estate property tax:
$
State and local income tax:
$
Personal Property Tax:
$
Charitable Contributions:
$
Deductible Medical Expenses:
$
Miscellaneous Deductions:
$
Filing Status:
Married -
Single
Head of Household -
Married Filing Seperately
Standard Deduction:
$
Your State Income Tax Rate:
%
Deductible Loan Interest:
$0.00
Deductible Taxes:
$0.00
Charitable Contributions:
$0.00
Total Itemized Deductions:
$0.00
Total Personal Exemptions:
$0.00
Taxable Income w/ Standard Deduction :
$-10,900.00
Taxable Income w/ Itemized Deductions:
$0.00
Your itemized deductions do not save you anything!
Your 2008 Tax Bracket
10 %