Real Estate Tax Deduction With Standard Deduction
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For 2008 and 2009 tax returns it was possible to take a real estate tax deduction even if you took the standard deduction. In these years, taxpayers who did not itemize could still deduct up to $500 ($1,000 if Married Filing Jointly) of state and local property taxes paid in addition to the standard deduction amount.

This tax break was not extended for tax years after 2009 and is therefore unavailable for 2013. 

You can still deduct state, local, or foreign taxes you paid on non-business real estate, but only if you itemize. In other words, this deduction will only be beneficial if the total of your itemized deductions (including the real estate tax deduction) exceeds the standard deduction amount for your filing status. 

TaxACT will automatically use the higher of your standard or itemized deductions to maximize the tax benefit to you. 

See the IRS Instructions for Schedule A, Line 6 Real Estate Taxes for more information.

To enter real estate taxes paid in TaxACT:

  1. From within your TaxACT return (Online or Desktop), click the Federal Q&A tab
  2. Click Itemized or Standard Deductions to expand the section, then click Taxes paid
  3. Continue to the screen titled Itemized Deductions - Real Estate Taxes Paid and enter the applicable information