Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

General Discussion

sl8

(16,666 posts)

3. It's not that simple

Reply to Recursion (Original post)

Sat Oct 5, 2013, 07:52 AM

Oct 2013

Last edited Sat Oct 5, 2013, 08:54 AM - Edit history (1)

Did you claim the standard deduction? For 2012 that was $5,950 for single filers, more for head of household and joint filers. You couldn't have claimed that if you itemized.

Even when you have mortgage interest you could claim, it doesn't always make sense to do so:

http://homeguides.sfgate.com/taxes-mortgage-interest-vs-standard-deduction-40780.html

Also, a tax deduction isn't the same as a tax credit. If you can deduct $3000 in mortgage interest, that's subtracted from your taxable income, not from the tax you pay. The reduction in tax will be far less than $3000.

Edit history

Please sign in to view edit histories.

Recommendations

0 members have recommended this reply (displayed in chronological order):

13 replies

= new reply since forum marked as read

Highlight:

The tax penalty I pay for renting my apartment dwarfs the ACA's tax penalty [View all] Recursion Oct 2013 OP

Very true. And if you own your home, say you live in your parents' home and it's paid for, JDPriestly Oct 2013 #1

Incentives yes. But people are not penalized for not buying a product they sabrina 1 Oct 2013 #8

Do you also oppose the home mortgage mandate? (nt) Recursion Oct 2013 #9

I would if I were being forced to buy a home. Are people forced to buy homes now? sabrina 1 Oct 2013 #10

I pay a tax penalty for not buying a home. Same thing that happens if people don't buy insurance Recursion Oct 2013 #11

did you factor in how much they pay in interest? Skittles Oct 2013 #2

Did you factor in how much insured people pay in premiums? Recursion Oct 2013 #4

??? Skittles Oct 2013 #5

Right, but my OP is making a comparison between ACA's mandate and the mortgage interest deduction Recursion Oct 2013 #6

This message was self-deleted by its author Skittles Oct 2013 #7

But also how much they gain when the market goes up treestar Oct 2013 #12

It's not that simple sl8 Oct 2013 #3

I don't support the deduction. You shouldn't be subsidizing that choice, I wouldn't for vote it. TheKentuckian Oct 2013 #13