One of the lesser talked about parts of the new housing bill is homeowners who do not itemize on their tax returns will now get the opportunity to get some credit on their 2008 federal tax return for their property taxes. Under the new guidelines, homeowners who take the standard deduction ($10,900 for married couples and $5,450 for singles) will get an additional standard deduction of $500 for single filers and $1,000 for married couples who file jointly.

It is estimated that about 40% of homeowners don’t itemize including many in less expensive homes, those with small outstanding balances owed on their homes and folks age 65 and older. They all will now be able to get an extra new tax break in addition to this year’s larger standard deduction.

The only drawback is that as of now, this new provision is scheduled to only be in place for one year. Hopefully, the illustrious people we have all elected to the Congress will correct this next year and make the new deduction permanent. However, I wouldn’t hold my breath and count on it.

Tags: IRS, new laws, taxes