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.