A new deduction for non-itemizers

[KCI]

The following article was in the USAToday newspaper yesterday and it was a surprise to me, so I thought I'd pass it on. This is right down our alley.

Recently passed Legislation to help homeowner with mortgage problems will also allow single homeowers who don't itemize to deduct $500 in property taxes a year , or $1000 if they're married and file jointly. The amount of the property tax deduction can't exceed the amount you pay in property taxes. For example, if you're single and paid $400 in property taxes this year, you'll only be allowed to deduct $400. This deduction is limited to tax year 2008 unless Congress votes to extend it.

 

[sfwilshire]

That's good news.

Thanks,

Sheila

 

[JoeMid]

Doesn't quite make sense to me. Wouldn't most of the people with mortgage problems be people with a large mortgage interest, thus they would be itemizing already?? That's USAToday for you, the nation's newspaper, for the nation that can no longer read real journalism, no slight to OP intended, I read it too when on travel and it's delivered to my door.

 

[KCI]

Doesn't quite make sense to me. Wouldn't most of the people with mortgage problems be people with a large mortgage interest, thus they would be itemizing already?? That's USAToday for you, the nation's newspaper, for the nation that can no longer read real journalism, no slight to OP intended, I read it too when on travel and it's delivered to my door.

Not sure why you're down on the USAToday. They didn't vote in the change, Congress did. I agree that the change doesn't seem to fit in with the mortgage crisis and that's why I was so surprised to read it.
KCI'S Wingman

 

[JoeMid]

Not sure why you're down on the USAToday. They didn't vote in the change, Congress did. I agree that the change doesn't seem to fit in with the mortgage crisis and that's why I was so surprised to read it.
KCI'S Wingman

Not down on this particular item, but USA today is not journalism, it's 'sound bites' for the reading challenged.

 

[rapmarks]

Yes, USA does not give any details and I know they gave incorrect information regarding the stimulus checks.

But this would be a great break for me and some others I know who don't itemize, but pay property taxes.

 

[Mimi39]

Good break for seniors who don't have mortgages but pay high property taxes.

 

[Liz Wolf-Spada]

Yes, it is for the few people who have paid off their mortgages, and thus no longer benefit from itemizing. What about about the thousands of renters? When do they get a break? Most of us were renters, I know I couldn't manage to buy a house until I was 40. Many urban dwellers will always be renters, because the cost of buying in many cities is prohibitive.
Liz

 

[swift]

Not down on this particular item, but USA today is not journalism, it's 'sound bites' for the reading challenged.

I am not a big reader of USA however, I would not say it is for the reading challenged but it may fit for someone who is time challenged. I often don't have the time to sit and read a paper everyday but my home page is an on line news page that does pretty much the same thing as USA. I can keep up to date enough to know what everyone is talking about and then on the weekend when I have more time (except on the days when I have two kids playing sports on two different fields across town from each other on the same day) I will sit down and generally read the paper cover to cover then.

 

[Don]

Doesn't quite make sense to me. Wouldn't most of the people with mortgage problems be people with a large mortgage interest, thus they would be itemizing already?? That's USAToday for you, the nation's newspaper, for the nation that can no longer read real journalism, no slight to OP intended, I read it too when on travel and it's delivered to my door.

We don't have a problem but we are a good example of how it might happen. We refinanced when the rates were very low ( 5.125%) for 15 years. Our loan was for less than $60,000. Since the mortgage interest is our biggest deduction, we don't have enough deductions to file the long form.

 

[Janette]

Thanks Linda. This is good news.

 

[Brett]

Doesn't quite make sense to me. Wouldn't most of the people with mortgage problems be people with a large mortgage interest, thus they would be itemizing already?? That's USAToday for you, the nation's newspaper, for the nation that can no longer read real journalism, no slight to OP intended, I read it too when on travel and it's delivered to my door.

apparently the "bailout bill" has more in it than just foreclosure remedies,
a quick read shows that it is for one year like the deduction of sales taxes, the tax deduction must be "renewed" each year.