MoneyLine: Tax break available if you use standard deduction
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By Neil Downing
Providence Journal MoneyLine Columnist
Q: You can take an additional standard deduction for real estate taxes on your 1040 form. What about the great many of us who use 1040EZ and already have filed? A: You'll have to file an amended return. Here's the deal: When you fill out your federal income tax return, you have a choice: Make a separate list of all your deductions, a process known as itemizing (done on Schedule A of your U.S. Form 1040), or simply claim a lump-sum amount, known as the standard deduction. By itemizing, you get to claim a variety of deductions - including the one for real estate tax (sometimes called property tax). But if you claim the standard deduction, you normally can't claim a deduction for real estate tax. However, new for this tax filing season, you may claim a limited deduction for real estate tax even though you claim the standard deduction, said Henry W. Stad of Rumford, local coordinator and tax counselor for the AARP Tax-Aide program. This provision might apply to you if you own your own home and pay property tax, but you don't have enough in deductions to itemize (for instance, maybe you've already paid off your mortgage). The provision generally lets you deduct up to $500 in real estate tax if you're single, or up to $1,000 in real estate tax if you're married and filing a joint return. That could generate an extra $75 in tax savings if you're single, or $150 if you're married (assuming you're in the 15 percent federal tax bracket). "It does reduce your tax, and . . . every little bit helps," Stad said. Technically, the deduction is an addition to your regular standard deduction amount. You may claim it only if you file U.S. Form 1040 (see the instructions for Line 39) or U.S. Form 1040A (see the instructions for Lines 23 and 24). But you've got to use Form 1040 or Form 1040A; you can't claim the extra deduction for real estate taxes on Form 1040EZ, said Internal Revenue Service spokeswoman Peggy Riley. If you've already filed Form 1040EZ, wait until it's processed, then file an amended return on Form 1040X to claim the additional deduction for real estate taxes. "You don't want the amended [return] to get mixed up in the processing of the original return," Riley said. Obtain a free copy of Form 1040X and instructions by visiting your local IRS office, calling the IRS toll-free at 1-800-829-3676, or using the IRS Web site. Questions about your money matters? Call us at 1-401-277-7484 and leave a message, or e-mail: moneyline@projo.com. Whether you phone in or e-mail your question, please be sure to include your name, home town and home phone in case we need to reach you. Sorry, no personal replies; as many questions and issues as possible will appear here. 
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