Totally confused about "standard deduction may include real estate taxes"

snipped-for-privacy@yahoo.com (Jane) posted:

As the Moderator said, you can still receive the benefit of any real estate taxes paid up to $500 if single, or $1000 if MFJ (as you state you file).

If you're preparing on paper, and your actual real estate taxes paid on your main home (where you live) were as much as -- or more than -- $1000, simply place an X or check mark in the box on line 39c, and add $1000 to your total standard deduction as shown in the left hand margin for your filing status (MFJ, in your case). [Note: If you are 65 or older, there are already additional values that should be added, in the amount of $1050 per person who qualifies.]

Here's an example: If you're both 65+, your standard deduction would be calculated as follows:

$10900 - Basic standard deduction for MFJ

• 2100 - 50 each for taxpayer and spouse

• 1000 - If amount of real estate tax was K+ _______ 000 - Total standard deduction to enter

Now, if you're using software and not itemizing, you should still open the Schedule A and enter the actual real estate taxes paid on your main home (where you live). Nothing else on the A needs to be entered.

If they are as much as (or more than) the allowable amount, the software should add that allowable amount to your standard deduction and indicate it as Real Estate Taxes Paid or insert the X on line 39c.

If your RE taxes are less than the allowable amount, then the total of your taxes should be added to your standard deduction.

Bill

A new rule for 2008 taxes allows anyone who does not itemize and pays real estate taxes to add up to $500 ($1,000 if MFJ) to their standard deduction. It's that simple.

got it. thanks