reposted from USAToday.com
April 2, 2013
With only two weeks to go to file your 2012 tax return, you probably have questions. Whether you prepare your own tax return or pay someone to do it for you, we are here to help. Every day until April 15, members of the American Institute of Certified Public Accountants have agreed to answer tax questions from USA TODAY readers. Submit your questions to firstname.lastname@example.org.
Q: I am 73 and I cannot itemize my deductions (I will use the standard deduction of $7,400). My question: I heard there was a way to deduct my property tax ($4,600) while utilizing the standard deduction. Is this still allowed?
A: Unfortunately, this is not still allowed, and there is no way to deduct your property taxes on your federal income tax return without itemizing.
Five years ago, Congress passed a bill allowing a single person to deduct up to $500 of property taxes on a primary residence in addition to their standard deduction. The limit was $1,000 for a married couple filing jointly.
Unfortunately, this provision was only put in place for 2 years, so for the years 2008 and 2009, a person could deduct at least a portion of their property taxes, even if they were not itemizing.
The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 extended some tax breaks, but this tax break was allowed to expire and has never been reinstated.;
The instructions to for the 2010 Form 1040 on the IRS website lists expired tax benefits on page 6. For more information on itemized and standard deductions:
Mackey McNeill, CPA
Mackey Advisors, Bellevue, Ky.