Property Tax For NonItemizers

Today TaxMama hears from Sethu in the TaxQuips Forum, who is angry. “For the 2009 tax year the non-itemizers (those who used standard deduction) could add up to $1,000 to their regular standard deduction if they paid real estate taxes greater than $1,000. I do not see that provision for the tax year 2010. When I went through the instructions for that line (line 40 in Form 1040) there is no indication of that. Also in Schedule L (where you can figure the amount of deduction), the columns with respect to the real estate taxes have been eliminated (instead there is this sales tax deduction on motor vehicles bought in 2009 but not in 2010). Can you verify this? If true, they slammed the non-itemizers with a tax increase (while decreasing it for millionaires). What a shame on the Congress!”

Dear Sethu,

The Schedule L was new last year.  It was a temporary benefit for non-itemizers and seniors.

This benefit was not extended.  Neither was the sales taxes for non-itemizers for new vehicles purchased in 2010.

Write to your Congressfolk to complain.

 And remember, you can find answers to all kinds of questions about tax law changes, property taxes, and other tax issues, free. Where? Where else? At www.TaxMama.com.

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