does GA let you deduct mortgage interest & prop. tax? (real estate, loan)

[Go Blue 99]

Just wondering- when you file your GA income taxes, are you allowed to deduct your mortgage interest and property taxes paid? Or is this only for federal taxes?

thanks.

[rackensack]

Been using TaxCut so long that I rarely think about how it's calculated, but IIRC your Georgia income tax liability is calculated using the Adjusted Gross Income (AGI) from your Federal return (for most taxpayers, anyway). If you itemize deductions on your Federal return, your AGI will reflect deductions for mortgage interest, and thus your Georgia tax due will as well.

<disclaimer> I'm not an attorney, accountant, trained tax preparer, or in any way qualified to answer this questions other than as a Georgia taxpayer myself. You should definitely consult your tax advisor before relying on this information in making any type of financial decision. No deposit, no return. Do not expose to open fire or flame. Just add water, makes its own sauce.</disclaimer>.

[Padgett2]

I'll copy rackensack's disclaimer......If you didn't itemize on your Federal, you can't itemize on your Georgia. When you file, you use the Federal adjusted Gross figure and then there are a few more strictly Ga type deductions.

[Twinkletoes]

I'm an accountant, and the above statements are correct.

[Go Blue 99]

Cool thanks for the info. I found a copy of the GA tax form and see that it's AGI. It's nice to know my GA refund will go up due to all my mortgage interest & tax.

[Parsec]

Originally Posted by Go Blue 99

Cool thanks for the info. I found a copy of the GA tax form and see that it's AGI. It's nice to know my GA refund will go up due to all my mortgage interest & tax.

You shouldn't be receiving a refund if you properly calculated your withholding status. This is a free loan you are giving to the government over the course of the year. They are not paying you interest on it, and are just giving back your own money a year after you earned it. I'd suggest searching for a withholding calculator on the web to find out what your true withholding should be, and you'll get a little more money in every paycheck as a result.

[LoveMiami]

what about if you have second home in GA and live in NY?
can u get any deductions?

[rackensack]

Like I said before, it's all a matter of what goes on your Federal return -- your AGI for Federal purposes is your income for Georgia income tax purposes. As I understand it, mortgage interest is generally deductible on your primary and secondary residences, but having only the one home it's not something I've ever had to think about.

From the IRS:

Is the mortgage interest and property tax on a second residence deductible?

The mortgage interest on a second home which you use as a residence for some portion of the taxable year, is generally deductible if the interest satisfies the same requirements for deductibility as interest on a primary residence. Real estate taxes paid on your primary and second residence are, generally, deductible. Deductible real estate taxes include any state, local, or foreign taxes on real property levied for the general public welfare. Deductible real estate taxes do not include taxes charged for local benefits and improvements that increase the value of the property. For more information, refer to Publication 17, Your Federal Income Tax for Individuals, Chapter 24; Tax Topic 503, Deductible Taxes; and Publication 530, Tax Information for First-Time Home Owners.

References:

* Publication 936, Home Mortgage Interest Deduction
* Publication 530, Tax Information for First-Time Homeowners
* Publication 17, Your Federal Income Tax for Individuals
* Tax Topic 503, Deductible Taxes
* Tax Topic 505, Interest Expense

BTW, consider that disclaimer repeated.