1. Home
  2. Taxes General Forum
  3. Standard Deduction Increased due to Real Estate Taxes?

Standard Deduction Increased due to Real Estate Taxes?

Pages 34 and 35 of the 1040 instructions for 2008 IRS returns speak of the standard deduction being increased, under certain circumstances, due to real estate taxes.

My standard deduction would be $5,450, if I paid no real estate taxes. As I work through the worksheet on page 35, with no earned income, born before 1.2.1944, filing separately, and having paid real estate taxes of $2,000, I find that my standard deduction becomes $2,450.

It doesn't seem logical to me that my standard deduction goes down just because I paid some real estate taxes - so I think I'm not doing something correctly here.

Any enlightenment appreciated.

Reply to
CWLee
Loading thread data ...

The right answer is 5950 unless filing status is MFJ. So re-read the line-by-line instruictions on that worksheet.

Reply to
Arthur Kamlet

I was surprised that there was no supporting form -- schedule A or otherwise-- printed out by my tax program supporting the increased line 40 "Itemized deductions (from Schedule A) or your standard deduction (see left margin)" on form 1040.

Reply to
DF2

I just finished the forms for my 80+ yr old. I used TurboTax and saw the same thing. I pulled up a schedule A to enter the real estate tax, and it flowed to the standard deduction worksheet, properly giveing her the extra $500 deduction, but the Schedule A promptly evaporated. It did maintain the Sch A Tax and interest (keep for records) worksheet, but that was it.

I bet this is one that many non-itemizers will miss. Joe

Reply to
JoeTaxpayer

I would probably have been one of them, were it not for reading MTM. I have alerted friends.

Reply to
DF2

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.