Additional Standard Deduction for Real Estate Taxes

Do you pay state or local real estate taxes but don't qualify to itemize your deductions?  

For Tax Years 2008 and 2009, if you pay state or local real estate taxes, you may take an addition to the standard deduction.  

What you need to know about the additional standard deduction for real estate taxes:

1. The additional deduction is equal to the amount of of real estate taxes 

paid up to $5oo for single filers or $1000 for joint filers.

2. You must have paid the taxes during your tax year and the taxes must 

have been imposed on you.

3. The taxes must be based on the assessed value of the property.  Taxes 

imposed for improvements to property, such as assessments for 

sidewalks, usually cannot be deducted.

4. Real Estate taxes paid on business or foreign property do not qualify.

5. You must file Form 1040 or 1040A to claim the additional deduction.

Form 1040 - check box on line 39c

Form 1040A - check box on line 23c