Am I getting part of the mortgage interest back when filing tax

All these years I thought that I am getting 25% of the mortgage interest back since I am in the 25% tax bracket. Not so true. I am filing jointly and my standard deduction is higher than the mortgage interest.  In other words, my itemized deduction is less than the standard deduction.   So I [...]

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How to calculate Adjusted gross income [AGI]

Why it is important. Your AGI is the basis for several tax thresholds. Determining whether you qualify for certain tax credits Determining whether you can deduct medical expense Your state tax is based on this number. The first step is to find out your Taxable income. You can find this number in box#1 on your W2 [...]

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How to calculate taxable wages [Box 1 on W-2]

Gross Pay  -   nontaxable wages [ HSA, Medical premium, Dental premium, uniform allowance]  -    Tax deferred wages [ Traditional retirement plan] Example Gross pay     3,000 Non taxable wages      200 [HSA]  + 150 [Medical] +   50 [ Dental] + 10 [ Uniform allowance] Tax-deferred wages   500   [ [...]

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2018 IRA Contribution and Deduction Limits –

Effect of Modified AGI on Deductible Contributions If You ARE Covered by a Retirement Plan at Work. https://www.irs.gov/retirement-plans/plan-participant-employee/2018-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-covered-by-a-retirement-plan-at-work Effect of Modified AGI on Deductible Contributions if You are NOT Covered by a Retirement Plan at Work https://www.irs.gov/retirement-plans/plan-participant-employee/2018-ira-contribution-and-deduction-limits-effect-of-modified-agi-on-deductible-contributions-if-you-are-not-covered-by-a-retirement-plan-at-work Note  The best way to reduce your AGI is making max contributions to employer-based retirement plans and contributing [...]

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