This is a first.
You are blaming your lender and Realtor for the fact that you did not adjust your withholding?

You may be unaware but that lenders and Realtors (truthfully all professionals) know what they know, know what they don't know, and understand the difference. IOW that means that professionals to do not provide adice outside their area of expertise.

The bright side is that you can estimate your tax liability NOW and adjust your witholding for the rest of the year so you'll have larger paychecks for the rest of the year!

Themrs,

Neither lenders nor real estate agents/brokers can give legal, tax or accounting advice. That's clearly stated (several times) in the Buyer's Agency Agreement and Regional Sales Contract which were part of your purchase offer when you first bought the house.

It's not that I (or any other agent) don't want to help, but we can't. I strongly suggest you speak with an accountant for further guidance.

Danilo
http://LoudounScene.com
http://LoudounForeclosures.com

Your agent is not a tax accountant, and anyone who is telling you that your agent "should" have made you aware of this needs to look up the countless amounts of lawsuits against Realtors who have spoken on matters of tax law. I suggest you speak with your HR department or with a tax accountant. Don't blame your Realtor for not providing you personal finance consultation. It is well beyond their scope of work - what would your friends have done if that advice had resulted in a tax lien against their home or even an audit?

Talk to your HR department first to see what the adjustment will mean each paycheck, and then seek the advice of a tax professional to see what tax bracket you will fall into.

I really hope that this tweak allows you to stay in your home!

Jimmy Mulhern

Hi Themrs - these are the types of questions that a tax accountant could answer most effectively and correctly for you.

What your friends have told you seems to be true as far as my general knowledge on the topic. If you have been getting a very large refund after filing your taxes ever since you bought your home then yes, you can certainly adjust your deductions so that you get more on a monthly basis instead of once a year after filing your taxes.

This is not included in the professional training that real estate agents or loan officers receive - you would need to consult with an accountant on this topic.

There is a good chance that you can adjust your personal deductions to coincide with your new interest deduction. Your accountant or TurboTax.com can give you some help in that direction. Your realtor may have known about this if he owns a house himself, but he should not be giving tax advice. I have found turbotax.com to be a wealth of information regarding real estate ownership tax consequences, but their answers are general since they know nothing of your own situation. Checking with your tax guy is the best approach. Modifying the W-4, at any point, is seen within 1 to 2 paychecks.

You should consult your cpa or a tax professional about questions concerning your withholding. These questions should never be answered by a realtor or your lending. I as a broker can tell you that your taxes and the amount you owe SHOULD change but that I am not a professional and you should consult one. Good luck!