After the new standard deduction expires

[dyne]

Many of my clients find they are not able to itemize because the new standard deduction beginning in 2008 allows that up to $500 or $1,000 of real estate tax may be added.This has reduced the tax liability for several of my clients by $150. For a couple both aged 65 or older this standard deduction for 2009 is often $14,600. What will happen when and if this new law expires or is not extended? These people will have stopped attempting to itemize and may forget to try again after this law expires. I have seen some returns prepared by others who forgot to claim the real estate tax paid.

[KBTS]

The provision has expired, although I believe there is already proposed legislation to extend the real estate tax addition to the standard deduction. I'm not sure what you mean about clients not attempting to itemize, that is why we are here for them (and also need to remind them of the importance of having a tax professional who stays on top of tax changes!)

[dyne]

I keep giving my clients my questionnaire asking them to list their schedule A deductions
and other deductions such as student loan interest, etc. so MY clients will not overlook
these. At some point after not being able to itemize for several years I give them instead
a simple questionnaire which does NOT list schedule A deductions. But I wonder about
OTHER taxpayers who may simply stop attempting to itemize after being allowed the larger
standard deduction including the up to $500 or $1,000 of real estate tax paid.

[thomtax]

In Arkansas we have a little different situation that helps me to remember to try to itemize each year. For the state, the standard deduction is $2,000 for each person. So there is a big gap between state and federal and many can itemize on the state, but not the federal.

LT

[taxea]

How can they forget...it is your responsibility as their preparer to be sure you are given all the documents needed to properly complete their return, ergo, your responsibility to remind them.

[mblatour]

taxea.....................

Negativity is contagious and unnecessary. I thought this board was here for support, not to make others feel bad.