When completing your taxes for 2009, don’t forget about the property tax deduction for non-itemizers which was extended to the 2009 tax year. This deduction allows those not eligible for the standard deduction to deduct their property taxes paid.
In years past, property taxes were only able to be deducted from itemized returns. However, in 2008, filers were allowed to deduct real estate property taxes even if they took the standard deduction. Congress extended this tax benefit to 2009.
The amount you are able to deduct is equal to the amount of real estate taxes paid up to $500 for those filing single, and up to $1,000 for those filing joint returns. This is particularly good for older tax filers, or those who have held a mortgage for a long period of time. With little in the way of itemized expenses, often these tax payers must choose the standard deduction and get no further benefit such as deducting property taxes.
Fortunately, there are no income limits to claim the property tax deduction. You simply add the eligible amount of your deduction to the standard deduction on Form 1040 or 1040A.
For other great tax tips, check out the article 11 Most Commonly Missed Tax Deductions, which inspired me to remind homeowners of this often forgotten tax deduction.
Photo by chadmiller
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