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New Deduction for Non-itemizers

Get the most for your property taxes.

Beginning in 2008 and continuing in 2009, a “real property tax deduction” is added to the components of the standard deduction. In addition to the standard deduction allowed to non-itemizers, taxpayers are allowed to deduct up to an additional $500 ($1,000 for joint filers) of property taxes paid. Foreign property taxes do not qualify for this deduction; however, they still qualify for itemized deductions. State and local sales and excise taxes paid on the purchase of new cars, light truck, recreational vehicles, and motorcycles through 2009 are also deductible for non-itemizers. This deduction is for 2009 only and is subject to an adjusted gross phase-out in excess of $125,000 (single) and $250,000 (joint).