Change in federal income tax law provides new deduction for non-itemizers

Suggested Intro:

WITH APRIL 15TH RIGHT AROUND THE CORNER, A SPECIALIST IN PENN STATE'S COLLEGE OF AGRICULTURAL SCIENCES HAS GOOD NEWS FOR ANYONE TRYING TO CHOOSE BETWEEN ITEMIZING AND TAKING THE STANDARD DEDUCTION ON THEIR FEDERAL TAXES. GARY ABDULLAH HAS THE STORY:

Story:

(:15) FOR YEARS, ANYONE TAKING THE STANDARD DEDUCTION ON THEIR FEDERAL TAX RETURN COULDN'T DEDUCT THEIR LOCAL REAL ESTATE TAXES. BUT PENN STATE EXTENSION FAMILY-FINANCE EDUCATOR ROBIN KULECK SAYS IT'S DIFFERENT THIS YEAR -- AND PENNSYLVANIA TAXPAYERS WILL HAVE A SPECIAL APPRECIATION FOR THE CHANGE:

Kuleck Actuality:
(:18) "IF THEY'VE PAID UP TO A THOUSAND DOLLARS IN PROPERTY TAXES OR MORE, THEY CAN TAKE THAT THOUSAND DOLLARS AS A DEDUCTION, IN ADDITION TO THEIR STANDARD DEDUCTION. IF THEY'RE SINGLE, THEY CAN TAKE UP TO FIVE HUNDRED DOLLARS OF THEIR 2008 PAID PROPERTY TAXES -- WHICH IS VERY COOL BECAUSE ALSO AS A PENNSYLVANIA RESIDENT, WE'RE STARTING TO SEE THE BENEFITS OF THE HOMESTEAD ACT. AND SO, MY SCHOOL TAXES WERE DOWN BY ABOUT THREE HUNDRED DOLLARS."

(:14) KULECK SAYS HOMEOWNERS WHO FILED FOR AN EXCLUSION UNDER THE STATE'S HOMESTEAD ACT ARE ALREADY SEEING A REDUCTION IN THEIR 2008 PROPERTY TAXES, SO THE FEDERAL REAL ESTATE TAX DEDUCTION FOR NON-ITEMIZERS PROVIDES MORE TAX SAVINGS. FROM PENN STATE, I'M GARY ABDULLAH.

Learn more:

Highlights of 2008 Tax Law Changes: Tax Breaks Renewed, Recovery Rebate Credit, Homeowner Relief