Thursday, January 29, 2009

Housing Assistance Tax Act: of 2008

The Housing Assistance Act of 2008 is a tax law change that applies only for 2008. Under this act, taxpayers who pay real estate taxes but are unable to itemize this expense on their tax returns may now increase their standard deduction amount for 2008. The maximum amount that may be claimed is $500 single filers and $1,000 for joint filers.

For example, a married couple filing jointly with an income of $28,000 that did not itemize their tax return but paid $1,200 in real estate taxes in 2008 could increase their standard deduction amount by $1,000. This additional standard deduction would decrease their tax liability by $100.

Read more

No comments: