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Prepay Property Taxes to Save Money Next Year, posted on 12-27-2017 07:05 PM
Prepay Property Taxes to Save Money Next Year
If your state and local income taxes plus property taxes total more than $10,000/year, you can save money by pre-paying some of your taxes before the end of 2017. If you own a home, you may be one of the millions of people effected. Before the end of December, state and local property taxes you pay can written-off on your April tax return, as you may have done in year's past. Effective January 1, 2018, if you pay more than $10,000 in state and local taxes in the year, you will effectively be double-taxed on the excess amount as if that money was kept in your bank account. This information is new because details of the Republican-backed tax plan only became public in the last few weeks. So, people are scrambling to pay property taxes early while they still can get full write-off credit. Check with your state's tax offices and news organizations to see if (and how) you can pre-pay at least a portion of your property taxes before the end of this week, to avoid having to pay more taxes next year. For example, towns in Maryland have scrambled to allow homeowners to pre-pay their property taxes to delay their taxes rising dramatically until 2019. Original post |
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