Little-Noticed Provision of New U.S. Housing Relief Bill Could Save Some Taxpayers Money!
NEW PROVISION WOULD CREATE STANDARD TAX DEDUCTION FOR SOME HOMEOWNERS WHO DO NOT ITEMIZE THEIR DEDUCTIONS!
The new U.S. Housing Relief Bill, just approved the the Congress and headed to The President's desk for assumed approval, primarily is geared to help distressed home owners stave off foreclosure, tighten mortgage lending standards nationwide, shore up Fannie Mae and Freddie Mac, the two giant U.S. Sponsored Mortgage Guarantors, and create tax incentives for first-time home buyers.
One overlooked provision of the legislation, however, would allow those who presently do not take a tax deduction on their state or local property taxes to enjoy a Standard Federal Tax Deduction of up to $750 for married taxpayers filing jointly, $350 for single tax filers. (The Senate has proposed an even higher deduction of up to $1,000 for married home owners.)
Although originally conceived as a one-year benefit for those who do not itemize, it is likely the proposed change could become permanent. If so, it could provide help for the estimated nearly 2/3 of American taxpayers who do not itemized deductions on their return.
The new law would not offer any benefit those who rent, rather than own. However, it would provide some tax relief to many senior citizens and moderate-income households who opt for Standard Deductions, rather than Schedule C Itemization, on their filed tax returns.
See Kenneth R. Harney's article in today's Chicago Tribune for more info.
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