|
Posted by CallMeZoot on January 6, 2008, 4:22 pm
Please log in for more thread options
Hi,
My wife and I are school teachers and we work as independent
contractors during the summer months (and some nights and weekends),
making 6k-10k at this per year, reported on 1099-MISC. We usually owe
a couple thousand come April 15th.
This year, however, we''ve completed our first year of homeownership,
and have paid something like 18k in mortgage interest. All else being
equal, is this deduction likely to "cancel out" the untaxed
independent contractor wages, or perhaps tip us into refund-land for
the first time in years?
I'm not a tax expert by any means, but my impression is that the 1099-
misc income is added to gross income and then subjected to SE taxes.
And that the mortgage interest is deducted *in full* from taxable
income? So we're essentially adding approx 10k of 1099-misc income
and then deducting 18k.
Am I even remotely correct about this? Can anyone a bit more
knowledgeable walk me through how these two factors may interact with
one another, so I can be prepared for the results?
Thanks
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap