This is not to be confused with your effective tax rate, which is determined by dividing your total federal tax liability by your total income. (thebrokeprofessional.com)
If the home you purchased is worth $ 350,000 and you borrowed $ 315,000 at 4 percent interest, you can deduct $ 12,000 from your income which will result to a reduced federal tax liability. (lizloans.com)
The new tax law caps a deduction for state and local taxes at $ 10,000, a move that will increase federal tax liabilities for many homeowners in high - tax states like New York. (chicagotribune.com)