Mortgage Interest Deduction Barely Changes My Tax Due

[printmaker35]

When I entered a mortgage deduction of $14,625, my tax due amount was only reduced by $335.

All other entries including HELOC interest and property tax paid affected the tax due much more significantly.

According to what I've found out online, this amount of mortgage interest should reduce my tax burden by at least $4000.

[MaryK4]

It really depends on your filing status and other itemized deductions.

[printmaker35]

Married filing jointly.

I wonder why other deductions would affect the Mortgage deductions. Wouldn't they simply add up? Isn't that the point?

[NCperson]

how much are your total itemized deductions?  Are you filing single, joint or HOH?

can you post each category: 

1) mortgage interest? HELOC interest? 

2) state taxes and property taxes (remember this is limited to $10,000)

3) donations 

[NCperson · Accepted solution]

since you filed joint< the first $24,400 of deductions is a 'gimmie'.  you get that automatically,

if the itemized deductions sum to more than $24,400, then you get that as the deduction.  And remember that the SALT (state and local taxes) are limited to $10,000.

it's the higher of the two. 

So if itemized total is $26,000 and you are in the 24% tax bracket, the marginal benefit is only $26,000-$24,400)*.24 or $384. 

[printmaker35]

Thanks.

That makes sense, as our itemizations only bring us to just north of 25k in total deductions.