- Mortgage amount
- Original or expected balance for your mortgage. Taxpayers can deduct
the interest paid on first and second mortgages up to $1,000,000 in
mortgage debt (the limit is $500,000 if married and filing separately).
Any interest paid on first or second mortgages over this amount is
not tax deductible. Home equity loans are limited to $100,000 or the
amount of equity you have in your home. Our calculator limits your
interest deduction to the interest payment that would be paid on a
$1,000,000 mortgage. Please note that in addition to the $1,000,000
mortgage debt limit; this calculator assumes that your itemized deductions
will exceed the standard deduction for your income tax filing status.
If your itemized deductions don't exceed your standard deduction,
the benefit of deducting the interest on your home will be reduced
or eliminated. For 2009, the standard deductions are $11,400 for married
couples filing jointly, $5,700 for married couples filing separately
and singles, and $8,350 for heads of household. You should also be
aware that the total tax savings may be less for higher incomes that
have their allowable itemized deductions phased out. We also do not
consider any tax savings you might have previously had if you are
consolidating an existing mortgage. NOTE: You should consult a
tax advisor for further information regarding the deductibility of
interest and charges.
-
- Interest rate
- Annual interest rate for this mortgage.
- Term
- The number of years over which you will repay this loan. The most
common mortgage terms are 15 years and 30 years.
- Payment
- Monthly principal and interest payment (PI) for this mortgage.
- Combined State and Federal income tax rate:
- The marginal combined state and Federal tax rate you expect to pay.
Use the table below to help you determine your Federal tax rate.
| 10% |
$0 - 16,750 |
$0 - 8,375 |
$0 - $11,950 |
$0 - 8,375 |
| 15% |
$16,751- 68,000 |
$8,376- 34,000 |
$11,951- 45,550 |
$8,376- 34,000 |
| 25% |
$68,001- 137,300 |
$34,001- 82,400 |
$45,551- 117,650 |
$34,001- 68,650 |
| 28% |
$137,301- 209,250 |
$82,401- 171,850 |
$117,651- 190,550 |
$68,651- 104,625 |
| 33% |
$209,251- 373,650 |
$171,851- 373,650 |
$190,551- 373,650 |
$104,626- 186,825 |
| 35% |
over $373,650 |
over $373,650 |
over $373,650 |
over $186,825 |
Source: http://www.irs.gov/pub/irs-drop/rp-09-50.pdf
- Credit cards
- Enter your total credit card debt and its average interest rate,
or press the "Enter Data" button to enter up to 10 credit card accounts,
one on each line.
- Auto loans
- Click on the "Enter Data" button to input any auto loans you may
have into the details page. This details page is designed to let you
input your current monthly payment, the term (in months), the starting
balance and the number of months you have left. It then calculates
your outstanding balance and interest rate. You can enter up to three
installment loans.
- Other loans
- Click on the "Enter Data" button to input any additional installment
loans you may have into the details page. This details page is designed
to let you input your current monthly payment, the term (in months),
the starting balance and the number of months you have left. It then
calculates your outstanding balance and interest rate. You can enter
up to six installment loans.
- Balances
- Your total current balances for your credit cards, auto loans and
other loans.
- Interest rates
- The average annual percentage rate you pay. This interest rate is
calculated for each of the categories of debt you have including credit
cards, auto loans and other installment loans. For credit cards the
rate you enter is used to calculate the interest on all future credit
card payments. The length of time to pay off this credit card may
be much greater than calculated if you enter a low promotional interest
rate that is only good for a short period of time.
- Payment
- This is your initial monthly payment. For credit cards, if you checked
the "use credit card minimum payments" box, your monthly payment is
calculated as 4% of your current outstanding balance. With the "use
credit card minimum payments" box checked, your monthly payment will
decrease as your balance is paid down. This can greatly increase the
length of time it takes to pay off your credit cards. Uncheck this
box to enter your own monthly payment that will remain the same until
your balance is paid in full.
(We calculate your minimum monthly payment as 4% of your current
outstanding balance. While your actual minimum monthly payment may
be slightly different, this is one of the most common methods used
by credit card companies to calculate minimum payments.)
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