Quote:
Originally Posted by Snax
I have a mortgage on a $360k home and still ended up taking the standard deduction this last year. The current tax credit structure is a joke. My bet is that most people buying with that in mind failed to do the math on it.
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I agree most people don't do the math on the mortgage deduction since most new homebuyers I talk to think they will get it and only about 10% of households do.
When I say "only take the standard deduction" I'm implying they don't do ANYTHING to reduce their taxes. The don't put money into a 401K, IRA, HSA, FSA, don't pay their own medical insurance, etc.
In 2019 a couple can write off $19,000 each in 401k contribution and $7,000 in a HSA. For couples over 55 those go up to $25,000 each and $9,000 in the HSA. That kind of stuff cuts one's federal taxes FAST!