John M. Hoffman & Associates CPAs

Frequently Asked Tax Questions

Property Tax Deduction for Non Itemizers

 

This is something new for 2008 and tentatively only through 2009.

• Effective with the 2008 tax returns, a person who would otherwise claim a standard deduction, is now allowed to deduct up to $500 ($1,000 for a married couple) of real estate tax payments.

• The standard deduction for 2008 for a married couple is $10,900. If that couple would otherwise not itemize but claim the standard deduction instead, that couple could increase that deduction to as much as $11,900 with their real estate tax payments. A single taxpayer could increase their standard deduction of $5,450 to as much as $5,950.

• This additional deduction is currently in place for 2008 and 2009 tax returns only.

Taxpayers benefiting from this deduction:

• A great example is a person who owns their home and does not have a mortgage. the lack of a mortgage has them claiming the standard deduction. This will now give them a little something more for those real estate tax payments.

Be sure to tell us of your real property taxes on organizer sheet 14.

 

PLEASE NOTE THAT THIS ADDITIONAL DEDUCTION WAS NOT EXTENDED TO 2010 AND AFTER 2009 IS NO LONGER AVAILABLE.