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Attention: all US taxpayers who do NOT itemize deductions
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Teddy Salad
- Posts: 205
- Joined: Thu Mar 08, 2007 7:05 am
- Location: Colorado
Attention: all US taxpayers who do NOT itemize deductions
I just found out that for 2008 (and it looks like it will apply in 2009 also), taxpayers who do not itemize deductions and paid property taxes can increase their standard deduction by up to $500 for individuals and $1,000 if married and filing jointly. This is from the IRS website:
Higher Standard Deduction for Real Estate Taxes
Your standard deduction is increased by any state and local real estate taxes you paid in 2008, up to $500 ($1,000 if married filing jointly).
The taxes must be state or local real estate taxes that would be deductible on Form 1040 (Schedule A) if you were itemizing your deductions. Taxes deductible in arriving at adjusted gross income, such as taxes on business real estate and taxes on foreign real estate, cannot be used to increase your standard deduction.
If you are increasing your standard deduction by the amount of real estate taxes you paid, be sure to check the box on line 39c of Form 1040 or line 23c of Form 1040A.
There is a worksheet in the instructions that steps you through it.
By the way, I am not an accountant, I just have always stubbornly refused to pay someone to do my taxes.
So if you take the standard deduction, be sure to take advantage of this.
Higher Standard Deduction for Real Estate Taxes
Your standard deduction is increased by any state and local real estate taxes you paid in 2008, up to $500 ($1,000 if married filing jointly).
The taxes must be state or local real estate taxes that would be deductible on Form 1040 (Schedule A) if you were itemizing your deductions. Taxes deductible in arriving at adjusted gross income, such as taxes on business real estate and taxes on foreign real estate, cannot be used to increase your standard deduction.
If you are increasing your standard deduction by the amount of real estate taxes you paid, be sure to check the box on line 39c of Form 1040 or line 23c of Form 1040A.
There is a worksheet in the instructions that steps you through it.
By the way, I am not an accountant, I just have always stubbornly refused to pay someone to do my taxes.
So if you take the standard deduction, be sure to take advantage of this.