http://www.omaha.com/index.php?u_page=2798&u_sid=10187028Published Saturday | November 17, 2007
Nelson offers bill aimed at those who don't itemize deductions
BY JOSEPH MORTON
WORLD-HERALD BUREAU
WASHINGTON — Nebraskans often complain about high property taxes, but they can take some solace in deducting those bills on their federal income tax returns.
At least they can if they itemize their deductions.
Ben Nelson
For those who take the standard deduction, nearly 250,000 households in Nebraska, there is no way to deduct property taxes. Critics say that amounts to double taxation.
Legislation offered this week by Democratic Sens. Ben Nelson of Nebraska and Evan Bayh of Indiana would grant a special break to homeowners who opt for the standard deduction, which is $5,350 for single taxpayers and $10,700 for married couples filing jointly.
Those tax filers would receive an additional deduction for property taxes they've paid — up to $350 for single filers and $700 for joint filers.
Itemizing is a good deal for homeowners who pay a lot of mortgage interest. But for people who have already paid off their homes and for those living in less-expensive rural areas, itemizing may not make sense.
FULL story at link.