how much of mymortgage interest is deductible?
my wife and i bought our first house last march and our monthly payment is 2170.00 of which about 1750 a month is interest only. (we live in jersey)
roughly that is 21,000.000 a year just in interest. will we get a fair amount back on that? we make less than a 1000000.00 a year combined.
on a side note, she has 600.00 a month in school loans in which around 350.00 goes towards taxes, roughly 4200.00 a year in interest. can we write off that amount also/
thanks
sorry, its under one hundred thousand a year. unfortaneately, the cost of housing in nj near the shor is high. we paid 275000.00 for our house which was a great deal
You don’t get to directly subtract the mortgage interest paid from your total tax due, but you do get to subtract it from your taxable income before the tax is computed. So your taxable income is reduced.
There are some tax estimating calculators available at various websites to estimate your taxes (I think the IRS website even has one).
