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    ibbus's Avatar
    ibbus Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 11, 2007, 12:50 PM
    Standard deduction Vs Itemized deductions
    Hi
    My tax filing status is married filing jointly.
    I want to know how much we will get back from Uncle Sam if my itemized deduction is more than the standard. Let say my standard deduction is $10,300 and itemized deduction is $20,300 (say we own home and pay mortgage interest). So how much I will get back out of this difference of $10000 between two deductions? Say we belong to 28% tax bracket.

    Thanks
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Jan 11, 2007, 01:02 PM
    Tax deductions reduce your taxable income. So if you reduce your taxable income by $10K at 28% you reduce your tax liability by $2800. Assuming you were over withheld you would get back $2800 more.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jan 11, 2007, 06:42 PM
    Scott Gem's example is accurate, if your income is not so high that portions of the itemized tax deductions begin to be phased out.

    Also, you may be subject to the dreaded Alterntive Minimum Tax, which disallows certain itemized deductions like state, local and real estate taxes paid and miscellaneous deductions.

    If our tax system were just a matter of simple mathematical computations, I would be out of a job!
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