I am using TurboTax as a single filer in the 35% tax bracket, near the 37%.
I was at the point where the estimate for refunds was $499 federal, $516 state.
I went into my deductions and noticed I hadn't done mortgage interest yet - my mortgage interest in 2023 was over $5200. Whew, I thought that would be a nice change..!
Entered it only to find out the refund estimate changed to only $1092 federal, $516 state.
First, if I'm reducing my taxable by $5200, shouldn't it reduce my taxes by more like another $1820 (rather than $593)?
Second,, shouldn't it reduce my state (CA) income as well? CA allows mortgage interest deduction on properties up to $1 million. It didn't change the state refund.
What am I missing here?
I was at the point where the estimate for refunds was $499 federal, $516 state.
I went into my deductions and noticed I hadn't done mortgage interest yet - my mortgage interest in 2023 was over $5200. Whew, I thought that would be a nice change..!
Entered it only to find out the refund estimate changed to only $1092 federal, $516 state.
First, if I'm reducing my taxable by $5200, shouldn't it reduce my taxes by more like another $1820 (rather than $593)?
Second,, shouldn't it reduce my state (CA) income as well? CA allows mortgage interest deduction on properties up to $1 million. It didn't change the state refund.
What am I missing here?
Statistics: Posted by slalom — Fri Feb 02, 2024 1:02 am — Replies 0 — Views 52