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The mortgage interest deduction is separate from the state and local tax deduction. You are allowed to deduct both as itemized deductions for 2018. But as you know the state and local tax deduction portion is capped at $10k.
The mortgage interest deduction is separate from the state and local tax deduction. You are allowed to deduct both as itemized deductions for 2018. But as you know the state and local tax deduction portion is capped at $10k.
I stand corrected then. I recall it wasn't supposed to be. Even with mortgage interest deduction you are going to have to have a loan over 400k @ 4% or more to make up the the 14k needed to beat the standard.
Don't forget the personal exemption of $4050 per person in your household is gone with the so called federal "middle class tax cut".
So a family of four loses another $16,200 of exemptions to determine their AGI.
For many of us , the tax rate went down three percent, but it will be paid on a whole lot more of our income. Do the math.
Happy Holidays, everyone !!
Last edited by lifetimeliguy; 12-15-2018 at 06:08 PM..
The main benefit now is the $2,000 child tax credit per child. The phase out now starts at $200,000 ($400,000 MFJ). Previously, the credit was $1,000, with complete phase out with income over $110,000 (MFJ). Therefore, a lot of taxpayers who previously did not qualify for the $1,000 credit, will now qualify for the higher $2,000 credit.
You should use the free federal tax company on the IRS.gov website. They do your federal taxes for free and state taxes, if you want them done, for a small fee.
Don't forget the personal exemption of $4050 per person in your household is gone with the so called federal "middle class tax cut".
So a family of four loses another $16,200 of exemptions to determine their AGI.
For many of us , the tax rate went down three percent, but it will be paid on a whole lot more of our income. Do the math.
Happy Holidays, everyone !!
You'd be surprised how few people are aware of that, they talk about the 24k deduction as some kind of a big "gift" and it's not. We will be paying more that's a given..how much more we aren't sure yet but we figure it will be $1500-$2000.
Don't forget that tax brackets were adjusted, so for an average middle class family you're paying less percentage in federal tax. I think at the end middle class family will pay about the same as prior years with standard deduction.
Don't forget that tax brackets were adjusted, so for an average middle class family you're paying less percentage in federal tax. I think at the end middle class family will pay about the same as prior years with standard deduction.
What is considered middle class? I see this tax plan helping lower income married couples with children. However, higher earning single filers don’t benefit at all.
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