Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
jeannebaker2010
New Member

Why is Turbo Tax giving me a 15% federal tax benefit for my mortgage interest, but my marginal tax rate is 32%?

 
1 Best answer

Accepted Solutions
Zbucklyo
Level 9

Why is Turbo Tax giving me a 15% federal tax benefit for my mortgage interest, but my marginal tax rate is 32%?

I'm guessing that before you added the mortgage interest your itemized deductions were below your standard deduction, and afterwards your itemized deductions were above the standard deduction.  If so, you would only get a tax benefit to the extent that your itemized deductions exceed the standard deduction, and not for the full amount of mortgage interest.

View solution in original post

3 Replies
SweetieJean
Level 15

Why is Turbo Tax giving me a 15% federal tax benefit for my mortgage interest, but my marginal tax rate is 32%?

What makes you think that it is? Ignore the refund meter until you are finished.
Zbucklyo
Level 9

Why is Turbo Tax giving me a 15% federal tax benefit for my mortgage interest, but my marginal tax rate is 32%?

I'm guessing that before you added the mortgage interest your itemized deductions were below your standard deduction, and afterwards your itemized deductions were above the standard deduction.  If so, you would only get a tax benefit to the extent that your itemized deductions exceed the standard deduction, and not for the full amount of mortgage interest.

jeannebaker2010
New Member

Why is Turbo Tax giving me a 15% federal tax benefit for my mortgage interest, but my marginal tax rate is 32%?

Thank you!  That sounds like the answer...very helpful.

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.63m
Discussions

Manage cookies
v
ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz0123456789-_~