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Author: SirTas Big gold star, 5000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121150  
Subject: Schedule L Date: 4/15/2010 8:08 PM
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I filed for an extension -- but I noticed something new among the tax forms for this year -- Schedule L. If I understand this right, we must use Schedule L if we don't itemize on Schedule A, but also have some made a property tax payment in 2009. But then, I think, we're not allowed to take the standard deduction. Sounds to me that we come out worse with the new Schedule L.

We've paid off our mortgage, so we've stopped itemizing (since the absence of any mortgage interest payment doesn't make it worthwhile anymore). We've been taking the standard deduction. And we pay property tax. Do we have to file Schedule L and give up the standard deduction -- and am I right that this means we'll end up owing more tax?

--SirTas
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Author: TchrP Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110202 of 121150
Subject: Re: Schedule L Date: 4/15/2010 8:13 PM
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Schedule L allows taxpayers who pay property tax but don't itemize deductions to increase the standard deduction by up to $500 (or up to $1,000 if MFJ).

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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110203 of 121150
Subject: Re: Schedule L Date: 4/15/2010 9:25 PM
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If I understand this right, we must use Schedule L if we don't itemize on Schedule A, but also have some made a property tax payment in 2009.

Your misconception has already been cleared up, but the fact that you asked the question makes me wonder if you missed this benefit on your 2008 return. There was no Schedule L for 2008, but the same $500/$1000 add-on to the standard deduction was also available that year. Check your 2008 return and amend if necessary.

Phil
Rule Your Retirement Home Fool

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Author: SirTas Big gold star, 5000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110213 of 121150
Subject: Re: Schedule L Date: 4/17/2010 12:54 PM
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There was no Schedule L for 2008, but the same $500/$1000 add-on to the standard deduction was also available that year. Check your 2008 return and amend if necessary.

Thanks, Phil. I really don't remember this from last year. Is there a place that it appears on the 1040? (or is it in a worksheet?)

--SirTas

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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110214 of 121150
Subject: Re: Schedule L Date: 4/17/2010 3:52 PM
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Is there a place that it appears on the 1040?

Sort of. You just list a standard deduction that's a bit larger than normal. So you can look on page 2 of your 1040 and see if your standard deduction is larger than standard.

(or is it in a worksheet?)

I believe there was also a worksheet in the 1040 instructions to calculate your increased standard deduction.

--Peter

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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110216 of 121150
Subject: Re: Schedule L Date: 4/17/2010 5:40 PM
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Is there a place that it appears on the 1040? (or is it in a worksheet?)

There's a checkbox in the deductions area of the 2008 1040, page 2. I imagine there was also a worksheet in the instructions, but the checkbox is the key.

Phil
Rule Your Retirement Home Fool

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Author: SirTas Big gold star, 5000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110217 of 121150
Subject: Re: Schedule L Date: 4/18/2010 10:44 AM
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I found the place in the worksheet for last year's tax return where I had added the info about property tax -- so I don't need to file an amended return.

Thanks!

--SirTas

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