How much will tax refund be???

Hello,

Please forgive me for sounding so naive. My wife and I purchased a home 1 year ago. I am a little apprehensive about filing taxes this year, becuase I think I may owe money.

We file married, however we only have one income. We have 4 children all under the age of 16. Our taxable wages should be in the area of $80,000 dollars for the year Fed withholding was approxiamtely $4000, and state was $1450. Mortgage interest was $8600.00. I also paid $1,300.00 in retirement plan and $1586.00 for medical.

Any help would be appreciated.

Reply to
shootfighter22
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Go to turbotax.com, you can fill out a simple tax return for free.

Reply to
Barry Margolin

ago. I am a little apprehensive about filing taxes this year, becuase I think I may owe money.

the age of 16. Our taxable wages should be in the area of $80,000 dollars for the year Fed withholding was approxiamtely $4000, and state was $1450. Mortgage interest was $8600.00. I also paid $1,300.00 in retirement plan and $1586.00 for medical.

The Standard deduction for MFJ is $11,900, it sounds like you are on the edge there. Exemptions are $3800 per person, that's $22,800. (Ignoring other potential deductions) you are at $44K taxable. This would put your tax at about $5700, but the child tax credit is good for $4000 for you. This is a credit, not deduction.

To Barry's point, you need to look at an online tax software package. Enter the exact numbers, as your property tax and other itemized deductions may put you over the standard deduction.

I ran through this quick exercise to show any future reader that (a) some back-of-envelope math can put your mind at ease, and (b) that child tax credit goes a long way to paying your tax bill.

Reply to
JoeTaxpayer

Don't forget -- property tax, charitable contributions, state and local taxes paid (sometimes even state disability depending on the state), and part of DMV fee are deductible too. However all of these have to be more than the standard deduction of about 11900 to matter.

Your medical expense deduction works like this: you can only deduct the amount above 7.5% of your AGI (soon to rise to 10% because of Obamacare). So in practice you have no deductible medical deduction. It mostly applies to people who have to pai their own health insurance.

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remove ps

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