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    bigmac's Avatar
    bigmac Posts: 2, Reputation: 1
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    #1

    Feb 22, 2007, 06:21 PM
    Mortgage Payment After Tax Refund
    How do I canculate how much tax refund I will get from the IRS. I am planning to buy a townhome for $700K in NJ. Property taxes are $7600 annually. Mortgage Loan amount borrowed will be $670,000.

    Also is there a way to get tax refund on a quarterly or monthly basis or would I need to wait till end of year tax filing to receive a refund?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,304, Reputation: 7691
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    #2

    Feb 22, 2007, 08:17 PM
    You make payments quarterly but not get refunds, and refunds are merely over payment, so if you are overpaying your taxes, stop paying so much in on your paycheck, you can est it to get zero money back, so each week you will have that extra in your pay.

    But honestly if your budget is so tight, you require income tax refunds to make payments, you don't need to buy something that expensive
    bigmac's Avatar
    bigmac Posts: 2, Reputation: 1
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    #3

    Feb 22, 2007, 09:58 PM
    Quote Originally Posted by Fr_Chuck
    You make payments quarterly but not get refunds, and refunds are merely over payment, so if you are overpaying your taxes, stop paying so much in on your paycheck, you can est it to get zero money back, so each week you will have that extra in your pay.

    But honestly if your budget is so tight, you require income tax refunds to make payments, you don't need to buy something that expensive

    Thanks. Great answer. So can I hire a tax accountant to figure out how much taxes I need to pay each month from my paycheck taking into consideration any overpaid taxes on the mortgage interest? Will a good tax accountant be able to figure that out for me? I will be able to manage the budget without the tax refund, but its good to know what to expect or what the "net-monthy" mortgage will be, for budgeting purposes.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,304, Reputation: 7691
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    #4

    Feb 22, 2007, 10:14 PM
    Depending on how complicated your taxes are you should.

    If you get paid @ the same amount each pay period, and most of your income comes from one sourse it is easy, if not it gets harder.

    But lets say you normally pay 200 dollars a week in federal taxes on your check each week.

    And at the end of they year you normally get back 5000, you know basically you pay in twice too much. So you change your withholdings to equal that amount ( plus just a little, you don't want to pay to little)

    But yes a good accountant can look in detail ofyour last two or three years, plus estimated this year and work it all out.

    This is what I do, I don't want them to have one penny of my money to make interest on. I would rather pay them at the end of the year than get a refund, since that means they used my money all year free.
    ( but that is just me) for some people, the IRS refund is theonly way they can ever save any money to buy things.

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