About Tax Deductions

Property Tax

Not everyone can increase their taxes by itemizing their expenses on Schedule-A. You should consider itemizing if you own your home, have high medical costs, give a lot to charity, had a loss due to an accident or act of nature, have large work expenses that your employer does not reimburse. Your AGI, Adjusted Gross Income, limits you deductions. More about itemized deductions.

Real estate taxes: All real estate tax you actually paid during the tax year is fully deductible on Schedule A, but now you can take some of this expense off your taxes even if you do not qualify to file a Schedule A. To claim the property tax that you paid for your residence, you must file your tax using form 1040 and 1040-A. Your deduction is limited to $500 for single and $1,000 for MFJ.

Last updated: 01/29/2011 01:34:37 PM