When calculating tax savings from mortgage interest, you must use your marginal tax rate or the average tax rate
The TurboTax and HR Block Rapid calulator seem to use the average tax rate to determine the taxation of savings. Our average tax rate was 15% this year. Most other equipment designed especially for the calculation of tax savings for mortgage interest to use the marginal tax rate, which for us is 25%. Who are we supposed to use an accurate estimate of our tax savings? We intend to buy a house and has a great weight in our decision making.
Calculate your income tax of a house, then add the house and see how it changes. If you receive the standard deduction for married couples is more than 10,000 so that part is not saving. When you have a house, you have property taxes and interest of more than deduct from their state income or sales tax and charity are deductible. If they do charity and pay $ 3,000 for property taxes and interest of about 6K reduce your taxes and this will reduce the marginal rate and save you 25% of 6K is 1500 maybe 2000 if you have the high state taxes.
Mortgage Tax Benefits Keep Changing for First Time Buyers
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