How much would my refund be,? state and federal?

Question

im a first time home buyer i make 40k will pay 7k in fed. 1800 in state 4k in property tax yearly 4k in interest on the loan , im married with 2 children ages 3 and 4

Answer 1

Depending on what other itemized deductions you have, you might just end up with the standard deduction - the things you mention add up to less than the standard.

Why on earth are you having $7K withheld for federal?  

If you aren't self employed, you aren't going to owe any federal tax if that's your total income on a joint return, so will get back whatever is withheld for federal income tax.  If you are filing just for yourself and your kids, and filing as head of household, you most likely still wouldn't owe any federal income tax.

If any of that is your social security and medicare withholding, you won't get that back though.

Answer 2

Based solely on the information provided approximately $7600 federal.  We need to know what state you are in to calculate the state.  But there really isn't enough information for an accurate estimate.  First, $7000 is a lot of federal tax to be withheld on 40k.  Is that an accurate number?  Do you have any money put into a 401k or other retirement plan?Does your spouse work?  Do you have any education expenses for you or your spouse?  Pay childcare for the kids?  That information will give a better estimate.