Standard Deduction Amount for Property Taxes

[ILLMAS]

I have client that does not qualify to itemize, however they qaulify for "The Housing Assistance Tax Act of 2008 allows homeowners to claim an additional standard deduction for property tax if the taxpayer does not itemize. The additional amount is limited to $500 or $1,000 for joint filers." I have checked off line 39c of the 1040, but ATX doesn't calculate anything, does anyone know what I need to do to activate this line? Or what step I am skipping or missing.

Thanks

[RoyDaleOne]

Click on the bunny Line 40 Page 2.

Add Std versus itemized worksheet.

Go forth.

[MargaretMort]

I have done that, no problem. Each time ATX brings up Schedule A, I input the property tax, go back to the worksheet, etc. What I did discover is that if I delete the Schedule A, the property tax disappears from the standard deduction. I did discover that the worksheet said to force standard, perhaps that makes a difference. I just leave the darn thing in and efile with it there. Come to think of it, I haven't checked to see if the A is part of the efile forms. HMMM! MM

[AnnieR]

Have you clicked on the icon to force property tax onto the standard deduction? Just a thought.

AnnieR

[mcb39]

I have done that, no problem. Each time ATX brings up Schedule A, I input the property tax, go back to the worksheet, etc. What I did discover is that if I delete the Schedule A, the property tax disappears from the standard deduction. I did discover that the worksheet said to force standard, perhaps that makes a difference. I just leave the darn thing in and efile with it there. Come to think of it, I haven't checked to see if the A is part of the efile forms. HMMM! MM

First put an X in the box on Line 39c. Click on the number on line 40, standard deduction. A box will open up with two choices. Do not choose Schedule A, choose Compare standard and itemized or wording to that effect. A worksheet will open up. About halfway down, it will ask if you paid property tax. Click Yes. Go down a few more lines and it will ask you how much property tax you paid in 2008. Fill in the amount. It wil then calculate $500 or $1000 and carry it to Line 40 on the 1040 and add it to the standard deduction. Forget about the schedule A.

[Bill (Wisconsin)]

First put an X in the box on Line 39c. Click on the number on line 40, standard deduction. A box will open up with two choices. Do not choose Schedule A, choose Compare standard and itemized or wording to that effect. A worksheet will open up. About halfway down, it will ask if you paid property tax. Click Yes. Go down a few more lines and it will ask you how much property tax you paid in 2008. Fill in the amount. It wil then calculate $500 or $1000 and carry it to Line 40 on the 1040 and add it to the standard deduction. Forget about the schedule A.

First I enter the property taxes on Sch A (because if I enter it there it will auto-flow onto the Wisconsin return properly).

I haven't been putting an X on Line 39x -- just click the bunny on line 40 and when the box opens up (as MCB39 indicates) I select the option she mentions. However, on that worksheet I then have to click the box next to the question regarding "did the client pay property taxes" and the amount appears from what I entered on Sch A.

My wondering is: why can't the software see that I entered property tax and automatically check this box for me???

Bill

[Bart]

My wondering is: why can't the software see that I entered property tax and automatically check this box for me???

The software does not know that the property tax entered on the Schedule A is qualifying property tax for line 40.