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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: Property tax deduction Date: 6/2/2009 10:46 PM
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This was posted on another board....

Even so, for 2009 (like 2008) any homeowner who pays property taxes can take an above-the-line deduction of up to $1000 on the property tax they paid.

Is this true?
Do you have to itemize to get it?
What is "above-the-line" deduction?


It's true (mostly). The deduction can be claimed if you take the standard deduction. If you itemize, your real estate taxes are part of the itemized deductions. You can deduct your real estate taxes paid up to a maximum of $500 (single, MFS) or $1000 (MFJ). It's not an above-the-line deduction as that term is generally used. Above-the-line deductions figure into the calculation of Adjusted Gross Income (AGI), the last number on page 1 of Form 1040. The special real estate tax deduction is entered on page 2. It is a pre-tax deduction (as opposed to a tax credit which would reduce your tax liability dollar for dollar).

Ira
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