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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.

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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.

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