Tax return and property taxes

[elfinbaby]

My mom has always told me to pay my property taxes before Dec. 31 so I can deduct them on my tax return. This year we may not make that deadline but they aren't due until Jan. 31. We usually get a sizeable tax refund and I'm wondering how much our refund is going to be effected if we pay them in Jan. I realize we won't be able to deduct them but I have no idea what percentage of our refund is due to our property taxes. FYI, our prop. taxes are $4470 this year.

 

Thanks!

[Brilliant]

My mom has always told me to pay my property taxes before Dec. 31 so I can deduct them on my tax return. This year we may not make that deadline but they aren't due until Jan. 31. We usually get a sizeable tax refund and I'm wondering how much our refund is going to be effected if we pay them in Jan. I realize we won't be able to deduct them but I have no idea what percentage of our refund is due to our property taxes. FYI, our prop. taxes are $4470 this year.

 

Thanks!

 

You multiply whatever your top marginal tax rate is by $4470. So if you are in the 25% bracket, you will lose about $1100 this year - but get it back next year, as WendyK pointed out.

[elfinbaby]

Okay, so I'm going to look at my dh's income and figure out what bracket we're in, right?

 

So the chart midway down is how I do that?

http://en.wikipedia.org/wiki/Income_tax_in_the_United_States

 

Thanks so much!

[QueenCat]

You don't pay 25% of your salary in taxes if you are in the 25% category. Taxes aren't that simple. You would only pay 25% on the portion over $68,001 but under $137,300. You would pay 15% on the portion under the $68,001. All of this is after exemptions and deductions.

[elfinbaby]

I'm not sure I'm following now. I'm just asking about property taxes. I'm not looking to find out what I'm going to pay in taxes, just approximately what amount of my refund I will lose if I don't pay my property taxes in this calendar year.

[LizzyBee]

I'm not sure I'm following now. I'm just asking about property taxes. I'm not looking to find out what I'm going to pay in taxes, just approximately what amount of my refund I will lose if I don't pay my property taxes in this calendar year.

 

In order to calculate that, you need to know your marginal income tax rate. Your tax rate is based on your taxable income. If your income in 2010 is about the same as 2009, you can look at your taxable income in 2009, determine what your marginal rate will be, and multiply that by your property taxes.

 

If you are subject to alternative minimum taxes (AMT), not paying your property tax will have no effect on your refund, because taxes are not deductible for the AMT calculation.