Homeowner’s, in general, receive the largest tax benefits of most groups of taxpayers. These benefits, however, are generally only available to those who itemize their deductions. This has been the case to date.Laws, however, have now changed.

President Bush recently signed into law a package that enables homeowner’s who do not itemize their deductions to benefit from being the owners of homes. The new law allows these people to obtain some credit on their 2008 federal tax return for property taxes paid. Those who take the standard deduction will receive an additional $500 deduction for single filers, or an additional $1,000 deduction for married couples if they file jointly. This provision, however, is scheduled to be in effect for only one year.

The majority of homeowners will continue to itemize so that they can write off both mortgage interest and property taxes. There are, however, approximately 40% of homeowners who do not itemize their deductions and these are the people who will benefit from this new law. This 40% is mainly comprised of people who live in less expensive homes, who have paid off their mortgages, or who are age 65 and older. Anyway we can find to save money these days is appreciated. Be sure to take advantage of all of the tax breaks that are availabl.