If you itemize your tax return, you will probably be able to claim a deduction for the interest you have paid on your mortgage loans, including home equity lines of credit. A deduction is the amount you are allowed to subtract from your taxable income. It reduces the amount of your income on which you must pay taxes.
Items that lower your taxable income. Also, the value of the tax deduction you receive by deducting interest payments to your mortgage and home property taxes. For example, if you have $900 in interest and $100 property taxes per month, the monthly value of the tax deduction would be $280 with a tax rate of 28%.
Tax savings are the amount you may save in taxes from a tax deduction or credit that you would otherwise pay if you did not have the deduction or credit. Tax savings are also called a tax shield. You may wish to consult a financial or tax adviser. For businesses, tax savings are realized on such deductible expenses as lease payments, interest on loan payments, and depreciation expense.
Amount that can be saved in taxes under the IRS deduction for mortgage interest.
The amount of money that the homeowner is not required to pay the government in taxes because he or she owns a home.
The amount saved on taxes by itemizing deductions on income tax returns.
This is the amount of money you save in income taxes. You save this money because in most cases the interest you pay on your home loan is tax deductible! (Ask your tax advisor).
Also known as a tax shield, tax savings is the amount saved by making tax-deductible investments. An example is a home purchase, because deducting mortgage interest generates savings by reducing taxable income.