Senators eye standard property tax deduction

[Judi Lynn]

Senators eye standard property tax deduction
3 minutes ago

WASHINGTON (Reuters) - Homeowners who do not itemize their federal income tax returns would get an additional standard deduction of up to $1,000 for state and local property taxes under a U.S. Senate bill introduced on Wednesday.

The measure, introduced by Democratic Sens. Max Baucus of Montana and Robert Menendez of New Jersey, is aimed aiding seniors and other homeowners with paid-off mortgages by defraying the cost of state and local taxes paid to support public education.

Many U.S. taxpayers are not able to itemize their federal returns because without the substantial income deductions from mortgage interest payments, their other deductions fail to exceed standard deduction amounts.

Homeowners who do not itemize miss out on federal tax savings from deductions for state and local tax payments.
(snip/...)

http://news.yahoo.com/s/nm/20060726/pl_nm/economy_taxes_dc;_ylt=A86.I1cwAMhE2dAAHAga.3QA;_ylu=X3oDMTA5aHJvMDdwBHNlYwN5bmNhdA--

[MaineDem]

1. Hooray! Finally a tax change I can use! (nt)

[partylessinOhio]

2. What's the trick in there somewhere?

[havocmom]

7. Trick is Max is in trouble at home in MT

Too much bushco rubber stamping not going over well. He knows we are talking replacement.

[sutz12]

3. Sounds good on the surface...

Let's hope it doesn't have too many poisoned pills attached.

[xchrom]

4. now that's a tax deduction that makes sense for me.

i have no kids and a house.

most tax cuts going whizzing right by me with nary a pause.

[LostinVA]

5. Me too...

[xchrom]

6. have you heard that there is a singles union?

single trying wield some kind political clout to get the kind of tax cuts, etc that they need?

it's going -- but it's a bit clumsy -- lol -- cause it's a bunch of singles -- still...

[LostinVA]

8. GREAT IDEA -- and for gay couples, too!

[xchrom]

10. lol -- well i'm gay and single.

before my partner died though -- we were able to take advantage of some stuff -- i couldn't get when i was single!
dayum.

but point taken -- both need to get some goodies!

[w4rma]

9. There is no way Repukes will let this pass. Big banks will be foreclosing

on less property if it does.

[Cobalt Violet]

11. Yet another tax cut I don't get.

:boring:

[alarimer]

12. I know- I rent so this would not apply to me

And you know that any property tax reductions my apartment owners get are not passed along to tenants in the form of lower rent. Sometimes it really sucks to be single and a renter. Well it sucks for a number of reasons, not the least that I will NEVER be able to afford to buy a place on my own on my salary. Oh well.

[Sadie5]

13. State rental tax

In Indiana you can take up to $1500 off of your state tax for the rent you pay. It helps some.