Don't Confuse Recovery Rebate Credit With Tax Deduction

-- The additional standard deduction for property taxes, up to $500 for singles and $1,000 for married couples but no more than property taxes actually paid, is a separate tax break Congress approved for the 2008 and 2009 tax years.

The intent is to help homeowners whose property taxes and other itemized deductions are not enough to exceed the standard deduction. Contrary to another misconception, there are no age requirements to qualify (so you don't have to be over 65).

Many of you -- including three accountants -- were confused because there is no separate line on the tax forms to report this additional standard deduction. You just add it to the total on line 40 of Form 1040. A 10-item worksheet on page 35 of the 1040 Form instruction booklet should guide you through the process.