Is Your Mortgage Interest Really Deductible?




Updated for 2017/2018 numbers from December 2017 Tax Cuts and Jobs Act

Congress often debates whether to reduce the highly prized mortgage interest deduction which every realtor will tell you saves you a ton of money. The reality is that for many people with loan balances smaller than $200,000 and with today's low interest rates this will really not effect them very much. People have an inflated perception on how much they are saving from the deduction. In 2017 the standard deduction for a married couple has grown to $12,700 which is more than many middle income households pay in interest and property tax per year. The new 2017 tax bill increases this to $24,000 which will further reduce the number of people itemizing. This calculator calculates how much federal income tax you save now from your itemized deductions (mortgage interest, property tax, charitable contributions, etc.) compared with the standard deduction for your household. I have tried to include numbers from the finalized December 2017 tax bill.

Your Adjusted Gross Income: $
Number of Personal Exemptions: (Typically 1 per person )
Your Annual Mortgage Loan Interest: $
Your Annual Equity Loan Interest: $
Your Mortgage Point Interest: $
Your "Acquisition Indebtedness": $
Mortgage Obtained Before Dec 15, 2017?
Your real estate property tax: $
State and local income tax: $
Personal Property Tax: $
Charitable Contributions: $
Deductible Medical Expenses: $
Miscellaneous Deductions: $
Filing Status: Married Filing Jointly - Single
Head of Household - Married Filing Seperately
Standard Deduction: $ $
Your State Income Tax Rate: %
20172018
Deductible Loan Interest:$0.000.00
Deductible Taxes:$0.000.00
Charitable Contributions:$0.000.00
Total Itemized Deductions:$0.000.00
Total Personal Exemptions:$0.000.00
Taxable Income w/ Standard Deduction :$-12,700.00-24,000.00
Taxable Income w/ Itemized Deductions:$0.000.00
Reduction by Itemizing:NOTHINGNOTHING
Your Tax Bracket 10 % 10 %


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