(Closed) Property taxes vs. federal income return

posted 5 years ago in Home
Post # 3
5423 posts
Bee Keeper
  • Wedding: November 2012

@Jw1724:  I have never heard of this.  If its true, it may be by state.  Here in PA they keep that money.  You do get to deduct some of your closing costs on your federal return.  But only the year after you buy.

Post # 5
845 posts
Busy bee
  • Wedding: May 2013

Hmmm, now that I think about it, my personal return is almost equal to my yearly property taxes on my house. I’m pretty sure there is no correlation though. Im sure that’ll change when we’re married and my taxes in my city are relatively high for my area. I only get a couple hundred dollars more back than I did living in an apartment. 

Post # 6
3886 posts
Honey bee
  • Wedding: September 2011

That’s incorrect. Real estate taxes are tax deductible. How much it changes your tax bill will vary based on income, tax bracket, etc. http://www.irs.gov/taxtopics/tc503.html

federal taxes are set by the federal government. The state you live in and pay real estate tax to wont affect how the Feds handle the deductions.

Post # 7
7312 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

I so wish that were a true statement for everyone, but it’s not. While your property taxes can be taken as a deduction, that does not translate dollar for dollar as a tax return. If in doubt, consult your accountant. He/she can run some  preliminary numbers for you to give you a sense of how the property tax deduction would affect your tax returns.

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