Example: How You Can Use the Tax Credit
This is just an example of how a family of three would benefit from using this special tax credit when they finance their new home purchase. To determine the exact amount of tax savings you would receive, simply fill out this form.
Tax
Based on a family of three with combined income of $80,000 and $5,000 federal taxes withheld for the year.
| Without the Credit | |
|---|---|
| Gross Income | $80,000 |
| First Year Mortgage Interest | $14,916 |
| Per Person Exemption | $3,500 |
| Per Person Exemption | $3,500 |
| Per Person Exemption | $3,500 |
| Taxable Income | $54,584 |
| Tax Liability | $3,996 |
| Federal Tax Withheld for the year | - $5,000 |
| Tax Refund | $1,004 |
| With the Credit | |
|---|---|
| Gross Income | $80,000 |
| 80% of First Year Mortgage Interest | $11,932.80 |
| Per Person Exemption | $3,500 |
| Per Person Exemption | $3,500 |
| Per Person Exemption | $3,500 |
| Taxable Income | $57,567.20 |
| Tax Liability | $4,356 |
| Federal Tax Withheld for the year | - $5,000 |
| 20% of First Year Mortgage Interest | - $2,983 |
| Tax Refund | $3,627 |
Find out if you're eligible for this tax credit now!
