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Tax Withholdings for New Homeowners
Ready to do your 2007 taxes? The following article was written by a fellow Realtor in Texas and has some fantastic information....
KERRY LUCASSE :: Keller Williams Realty Atlanta :: 404.432.1844
There are many tax benefits to homeownership. One of them is to reduce our income taxes paid to Uncle Sam at the end of the year. A common mistake that new homeowners forget to do is to adjust their withholding exemptions adjustments on their paychecks.
Since mortgage interests are now a tax-deductible line item on your Form 1040 Income Taxes, you may be a candidate for Itemized Deductions on Schedule A instead of taking the Standard Deduction. If you had not made adjustments to your withholdings to anticipate for these additional benefits, you would more than likely have a tax refund at the end of the year. Why let Uncle Sam have your money interest-free?
The extra take-home pay you take back can be put to better use: savings, paying off consumer debts, or better yet take the extra money you have and put that back towards your mortgage as extra principal payments. That sounds like a sweet deal to me.
Standard Deductions for 2008 are:
Married couple(s) $10,950
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