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|Created:||Wednesday, December 27, 2017|
|Members:||Wednesday, December 27, 2017 at 11:07 eastern (293 days ago)|
|Public:||Wednesday, December 27, 2017 at 11:07 eastern|
|This is an informational posting or a note regarding an existing deal|
|Countries:||available in USA|
|Details:||Some People Can Prepay Property Taxes Now to Save Hundreds or Thousands of Dollars in 2018:|
Conventional wisdom has long held that it's better to wait to pay taxes when they are due, but that is not necessarily the best plan for some people today.
Some homeowners may see their taxes rise in 2018, but could defer some increases by prepaying their property taxes before the end of this month.
Here's what's happening:
One thing for sure is the amount of itemized deductions, especially property taxes, will be capped starting January 1. This is why people in some states are scrambling to pay property taxes early while they can still get full credit.
Recent articles published on Yahoo finance, NPR.org, NJ.com, and The L.A. Times all have the following advice for homeowners:
Your state's tax offices and local news organizations may provide details specific for your area. For example, towns in Maryland, the governor of New Jersey, and states of New York & California have set up ways to allow homeowners to pre-pay their property taxes before the end of the year. In Illinois, for example, 47,000 Cook County residents already paid their property taxes early compared to just 1,700 people last year.
Note that this ploy may not actually work, since the law's language is confusing a lot of municipalities. Some towns rushed to set up prepayments, and stopped when they learned their payment receipt structure would not qualify residents to apply the prepayment on their 2017 taxes.
Mortgage holders will need to notify their bank before making property tax prepayments.
There are other ways to get tax credits now before they end. As a Mercury News article (a California newspaper) and a New York Times article say, some people may consider donating more to charity by Saturday, December 30 to get tax benefits before the new law lowers the charity write-off benefits on January 1.