2008 Tax Time is here - Do it FREE online

2008 Property Tax Deduction for Taxpayers Who Don't Itemize Updated: 11/19/2008
Tax break applies to years 2008 and 2009
Property owners who use the standard deduction, rather than itemize their individual deductions when filing their income taxes, will get a new tax break for tax years 2008 and 2009.

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A chance to deduct property taxes
Prior to 2008, only taxpayers who itemized their deductions – that is, listed certain expenses such as mortgage interest to reduce their overall tax liability – could deduct state and local property taxes. Those who took the standard deduction, or a fixed amount of income not subject to tax, could not.

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Limits set on deduction amount
However, for 2008 and for 2009, non-itemizers will be allowed to take a limited property tax deduction, up to $500 for single taxpayers and up to $1,000 for married couples filing jointly.

A couple in the 25 percent tax bracket would save $250 in taxes, while a single filer in the 25 percent bracket would save $125.

The deduction is determined by whichever of the following is lower:
The amount of property taxes paid, or $500 for single taxpayers or $1,000 for married, filing jointly.

2008 Top Fuel Efficient Cars

I am in the market for a new car so I checked the rankings of some fuel efficient cars for 2008 based on the Environmental Protection Agency’s (EPA) miles-per-gallon ratings for city and highway travel. The EPA has a combined fuel economy formula of 55 percent of city mpg rating plus 45 percent of highway mpg rating. The rating for each vehicle is expressed in mpg as a city / highway ratio.

Rank - Manufacturer / Model --- MPG
1       Toyota Prius (hybrid-electric) --- 48 / 45
2       Honda Civic Hybrid --- 40 /45
3       Nissan Altima Hybrid --- 35/30
4       Ford Escape Hybrid FWD --- 34 / 30
4       Mazda Tribute Hybrid 2WD --- 34 / 30
4       Mercury Mariner Hybrid FWD --- 34/ 30
5       Toyota Camry Hybrid --- 33 / 34
6       Toyota Yaris (manual) --- 29 / 36
7       Toyota Yaris (automatic) --- 29 / 35
8       Ford Escape Hybrid 4WD --- 29 / 27
8       Mercury Mariner Hybrid 4WD --- 29 / 27
8       Mazda Tribute Hybrid 4WD --- 29 / 27
9       Toyota Corolla (manual)--- 28 / 37
10       Honda Fit (manual) --- 28 / 34



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