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aw29
LIF Adult
Member since 3/06 1075 total posts
Name:
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Tax refund and owning a home
We havnt done our taxes yet but people keep saying that we should get a nice amount because we own a home-is this true? I hope so!!!
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Posted 3/17/07 11:17 PM  |
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Prudential Douglas Elliman Real Estate
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Marcie
Complete Happiness :)
Member since 5/05 27789 total posts
Name:
LOVE being a Mommy!
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Re: Tax refund and owning a home
Thats what we heard too - this is our first tax season owning a house - so we will find out 
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| Posted 3/18/07 4:45 AM |
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smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
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Re: Tax refund and owning a home
We have a good tax refund due to the house.
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| Posted 3/18/07 7:42 AM |
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Lisa
I'm a PANK!!!
Member since 5/05 22334 total posts
Name:
Professional Aunts No Kids
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Re: Tax refund and owning a home
we have received a good refund every year that we have owned our home
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| Posted 3/18/07 8:07 AM |
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ChilisWife
God Bless America
Member since 5/05 3572 total posts
Name:
A.K.
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Re: Tax refund and owning a home
Posted by Lisa
we have received a good refund every year that we have owned our home
same here
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| Posted 3/18/07 8:33 AM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: Tax refund and owning a home
the reason you're able to get a better tax situation when you own a home is because there are two large expenses that are tax-deductable: mortgage interest and property tax.
when you don't own a home, most people use the "standard deduction", which this year is about 7k for married people. when you "itemize" (using a "schedule A"), you're able to use your mortgage and interest, which ALMOST always is more than the standard deduction.
THEN... on top of that, a schedule A opens the door for you to deduct expenses that people who use the standard deduction CAN NOT use... like charitable donations, medical expenses (except in a flex pay plan at work), some work related expenses, even the amount you spent to get your taxes done the previous year.
there is more information to this... of course, because taxes are confusing... but this is the best i could do to give a quick and understandable blurb.
hth in explaining the WHY you get more back
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| Posted 3/18/07 9:00 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Tax refund and owning a home
Posted by libby2595
the reason you're able to get a better tax situation when you own a home is because there are two large expenses that are tax-deductable: mortgage interest and property tax.
when you don't own a home, most people use the "standard deduction", which this year is about 7k for married people. when you "itemize" (using a "schedule A"), you're able to use your mortgage and interest, which ALMOST always is more than the standard deduction.
THEN... on top of that, a schedule A opens the door for you to deduct expenses that people who use the standard deduction CAN NOT use... like charitable donations, medical expenses (except in a flex pay plan at work), some work related expenses, even the amount you spent to get your taxes done the previous year.
there is more information to this... of course, because taxes are confusing... but this is the best i could do to give a quick and understandable blurb.
hth in explaining the WHY you get more back
what she said!
Its has alot to do with being able to write off mortgage interest (and when you first own the house, most of the monthly payment goes to interest. I think my first mortgage payment, about $25 went to principal )
we closed 12/22, so our return wasnt that much, but looking forward to 2007!
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| Posted 3/18/07 9:16 AM |
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chris605
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Member since 5/05 3205 total posts
Name:
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Re: Tax refund and owning a home
The first year in the house we did ok - But this is our second year and we did SOOOO much better - I hope every year is as good...
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| Posted 3/18/07 10:01 AM |
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mrsmck
Be a big girl!
Member since 5/05 4898 total posts
Name:
Donna
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Re: Tax refund and owning a home
We only bought our house in Oct, so we're not getting a refund. In fact, we have to pay, but not that much. our accountant said next year we should do much better.
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| Posted 3/18/07 10:08 AM |
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aw29
LIF Adult
Member since 3/06 1075 total posts
Name:
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Re: Tax refund and owning a home
Great, we have been in a year-my luck we will owe :)
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| Posted 3/18/07 10:14 AM |
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Jessee
LIF Adult
Member since 3/06 1260 total posts
Name:
Jessee
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Re: Tax refund and owning a home
I thought we would do a little better being that we sold and bought - but it was October, could this be why? I thought we'd do great b/c we could write off the closing costs.
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| Posted 3/18/07 10:29 AM |
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MrsS2005
Mom of 3
Member since 11/05 13118 total posts
Name:
B
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Re: Tax refund and owning a home
Posted by Jessee
I thought we would do a little better being that we sold and bought - but it was October, could this be why? I thought we'd do great b/c we could write off the closing costs.
Yes, you would've been better off, tax-wise, if you bought at the beginning of the year.
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| Posted 3/18/07 10:44 AM |
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CunningOne
***
Member since 5/05 26975 total posts
Name:
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Re: Tax refund and owning a home
We also get a nice amount back since we've been in our home. What's even more exciting is that since I became a SAHM and I don't work as much, we get back even more.
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| Posted 3/18/07 11:46 AM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Tax refund and owning a home
We didn't get alot back and still don't with 2 kids (compared to other people). We don't have many deductions so we get less than $3,000 every year.
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| Posted 3/18/07 12:19 PM |
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MommaG
Yay Spring!
Member since 5/05 5133 total posts
Name:
Gloria
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Re: Tax refund and owning a home
I've owned my house for nine years and last year I had to pay for the first time.  It was also the first full year I was married (don't know if that matters). Part of the problem was I refinanced a few years ago to a 15 year mortgage and was no longer paying tons of interest (more towards principal) on the mortgage. We've refinanced again for an expansion so I'm hoping we get refunds this year.
Just owning a house won't guarantee a refund - it depends upon your situation.
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| Posted 3/18/07 1:00 PM |
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raken40
soooo in love:)
Member since 5/05 4369 total posts
Name:
Karen
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Re: Tax refund and owning a home
we didn't get back as much as we had hoped for
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| Posted 3/19/07 7:07 AM |
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sunnyplus3
:)
Member since 11/05 8749 total posts
Name:
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Re: Tax refund and owning a home
Posted by hazeleyes33
We didn't get alot back and still don't with 2 kids (compared to other people). We don't have many deductions so we get less than $3,000 every year.
I think you've owned your house a long time & if I recall correctly you paid much less than what we have all paid recently, so your annual mortgage interest is way less too...that would explain why your refund isn't as large.
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| Posted 3/19/07 8:15 AM |
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my3bugs
Mom of 2 Boys
Member since 5/05 4381 total posts
Name:
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Re: Tax refund and owning a home
It really depends on a lot of factors. We have owned our home for three years and have a child and we pay alot.
Message edited 3/19/2007 8:16:49 AM.
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| Posted 3/19/07 8:16 AM |
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KvsGrl
Round 2!!
Member since 1/07 1202 total posts
Name:
Samantha
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Re: Tax refund and owning a home
I know it feels good to get a nice return, but from an accounting perspective, it is better to breakeven or owe. When you get a large refund back, it means that too much in taxes is being taken out of your paycheck. In theory, you are giving the government an interest free loan when you could have been earning 5% in an ING account. You may want to speak to a financial planner and change your allowances on your W4 so that you earn more each pay period and get less of a refund.
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| Posted 3/19/07 11:36 AM |
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Lucky09
2017!
Member since 1/06 7537 total posts
Name:
DW
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Re: Tax refund and owning a home
Posted by KvsGrl
I know it feels good to get a nice return, but from an accounting perspective, it is better to breakeven or owe. When you get a large refund back, it means that too much in taxes is being taken out of your paycheck. In theory, you are giving the government an interest free loan when you could have been earning 5% in an ING account. You may want to speak to a financial planner and change your allowances on your W4 so that you earn more each pay period and get less of a refund.
I completely agree (but then again, I am an accountant  ). Why should the government hold onto my money all year?
I try to break even, and usually end up getting a little back as a bonus
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| Posted 3/19/07 12:29 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Tax refund and owning a home
Posted by KellyFG
Posted by hazeleyes33
We didn't get alot back and still don't with 2 kids (compared to other people). We don't have many deductions so we get less than $3,000 every year.
I think you've owned your house a long time & if I recall correctly you paid much less than what we have all paid recently, so your annual mortgage interest is way less too...that would explain why your refund isn't as large.
I guess that could be one of the reasons. If we didn't have kids though, we probably would only get a little back if anything.
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| Posted 3/19/07 1:31 PM |
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Eleanor
LIF Adult
Member since 2/06 2223 total posts
Name:
Ellie
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Re: Tax refund and owning a home
we got a decent amount back, but it wasn't even a 1/3 of the $30K we paid in interest and property taxes! 
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| Posted 3/19/07 2:58 PM |
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NJmom
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Member since 8/05 4987 total posts
Name:
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Re: Tax refund and owning a home
Posted by aw29
people keep saying that we should get a nice amount because we own a home
that's what i always heard too. we bought our house 2 years ago and ended up owing money for the first time ever. last year we also owed money. but this year we are getting a refund!  But it's because we had a child and I stopped working. Owning a house hadn't helped us at all, but I guess we might have owed even more money if we were still renting as opposed to owning.
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| Posted 3/19/07 4:44 PM |
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MsMBV
:P
Member since 5/05 28602 total posts
Name:
Me
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Re: Tax refund and owning a home
Posted by chris605
The first year in the house we did ok - But this is our second year and we did SOOOO much better - I hope every year is as good...
ITA. But we moved in July, so we only paid 1/2 year of mortgage interest & taxes
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| Posted 3/19/07 5:48 PM |
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pharmcat2000
Mom of 2 + 1
Member since 10/05 7395 total posts
Name:
Catherine
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Re: Tax refund and owning a home
I got back a NICE amount. I got back just about 1/2 of what I paid in mortgage interest. However, I claim single zero on my w2 so I have the max taken out, I was out on maternity leave for almost 5 months last year, and DH was out of work just about all year. I don't think we'll do as well next year because our total income will be much higher.
I agree with breaking even, but it is awfully nice to get that chunk of money in the spring. We always use it to do upgrades/repairs to the house. I know -- if we had it in our paycheck all year we could be doing stuff all year long, but I know that we just wouldn't. This is kind of a forced savings for us.
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| Posted 3/20/07 11:54 AM |
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