Property taxes (Hope: house, buy, school district)

[ocngypz]

Originally Posted by Benz63

but can i deduct my property taxes amout from my yearly income when i do my taxes? so in a sense, it doesn't matter how much are the property taxes, right? as long as i have a job of course

When itemizing on Schedule A you add everything up, then subtract the standard deduction. What's left is what goes on your 1040.

Taxes always matter.

[Benz63]

So out of the 13k property taxes that are on the home right now, how much would i pay approximately after the deduction, i heard its about 1/3 , is that right?

[ocngypz]

Originally Posted by Benz63

So out of the 13k property taxes that are on the home right now, how much would i pay approximately after the deduction, i heard its about 1/3 , is that right?

No. The calculations are done based upon your tax bracket. In other words, if you were in the 15% bracket for every 1000 the savings is $150.

[Benz63]

Originally Posted by ocngypz

No. The calculations are done based upon your tax bracket. In other words, if you were in the 15% bracket for every 1000 the savings is $150.

i make 40k a year, so what tax bracket am i in?

[ocngypz]

Originally Posted by Benz63

i make 40k a year, so what tax bracket am i in?

Assuming single, no dependents... 15%

[GPC]

Originally Posted by twingles

Never.

Bought my house with $4900 tax, 10 years in they were $12K.

Enjoy homeownership on Long Island!

I could've written this post too. The property taxes on Long Island are ridiculous.

[SouthBound3]

Originally Posted by Benz63

Hi I have a question , I'm buying a house in school district 14 and the taxes are about 13k, do taxes stop rising after a certain point let's say after 15k?

That's really very funny.

[rocafeller05]

Real estate taxes are used as a reduction of salary for taxes, yes. Doesn't mean you are getting the tax amount back when come tax time.

[Benz63]

Originally Posted by rocafeller05

Real estate taxes are used as a reduction of salary for taxes, yes. Doesn't mean you are getting the tax amount back when come tax time.

so then how much am I getting back if not all of it when tax time comes?

[twingles]

Your mortgage interest is deductible also.

But you seem to be under the impression (as have others been in the past)that when people say "it's deductable on your taxes" that the IRS just sends you back the amount of your property tax plus anything else you're owed. That's not how it works. It's a deduction on your taxes. No one can possibly tell you how much you'll get back on your tax return for the year you buy your house.