Message Font: Serif | Sans-Serif
No. of Recommendations: 4
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).

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.