Congress is still debating 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 this will really not effect them very much. People have an inflated perception on how much they are saving from the deduction. In 2006 the standard deduction for a married couple has grown to $10,300 which is more than many middle income households pay in interest and property tax per year. 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.
Results
| Deductible Loan Interest: | $0.00 |
| Deductible Taxes: | $0.00 |
| Charitable Contributions: | $0.00 |
| Total Itemized Deductions: | $0.00 |
| Total Personal Exemptions: | $0.00 |
| Taxable Income w/ Standard Deduction : | $-10,300.00 |
| Taxable Income w/ Itemized Deductions: | $0.00 |
| Your itemized deductions do not save you anything! | |
| Your 2006 Tax Bracket | 10 % |
