I've got a mortgage and withholding question.I'm about to buy my first house; I know that paying mortgage interest will allow me to change mine and my wife's tax withholding, but I'm uncertain about some of the nitty-gritty there. Specifically, how can I calculate what our NEW TAKE HOME INCOME will be after our withholding is changed to take advantage of the new tax situation?=====>some say that Home buyers will spend more than half of their take-home pay on their mortgage in general your net take home pay is calculated by taking an individual's monthly gross income and subtracting federal income tax, Social Security and Medicare taxes, any state or local income taxes, monthly health and dental insurance premiums, 401(k) contribution and contributions to a flexible spending account
Specifics: Combined income = $124,000
Cost of home = $600,000
Mortgage interest = $22,000 (per year=====>. When deciding whether to itemize, you need to remember that you will be giving up the standard deduction. Therefore, after adding up your itemized deductions, you need to make sure the total is greater than the standard deduction for your filing status. If it?s not, then you will actually pay more in tax if you itemize.you can Once you have entered your expenses on the appropriate lines of Schedule A, add them up and copy the total to the second page of your Form 1040. This amount is then subtracted from your income to arrive at the final taxable income number.