Have a Tax Question? Ask a Tax Expert
Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
How are you today?
How much of the $800 payment is considered interest?
Also, I assume you get $1,895 per month from your pension and $271 a month from SS, those are not annual figures...
I can tell you how much the tax would be on the interest, if I had an amortization schedule. What you would have to do is take the portion of each payment that is attributed to interest and add that together. That's your income for the year. Then apply that to your marginal tax rate and that's your tax on that part of your return
So, 4% of the 800 is interest?
somehow that doesn't seem right, because you would only be getting $384 a year from interest
what's the principal and term of the loan?
I will need to know the principal and term of the loan, so that I can calculate the interest amount - and then we can go on to calculate your tax liability.
Okay ...I will find your marginal rate - your marginal rate is the rate of tax that is charged for your last dollar of earnings
Are you married filing joint, separate, or single?
I'm sorry that I am asking all these questions, but I need to know this information to give you an accurate response
Based on what you have already told me, your additional tax is not going to be very much, but I need to know your filing status so that I can know for sure
Please let me know your filing status...
Okay, you are in the 15% tax bracket, so your tax will go up by $705
as a result of this loan
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