Many Americans have rushed to prepay their 2018 property taxes and save on their federal taxes, hoping to take advantage of a tax deduction that will be scaled back in the new tax law passed by Republicans last week. The Internal Revenue Service confirmed Wednesday that taxpayers will be able to take advantage of the maneuver — but only under limited circumstances.
The IRS said that taxpayers can claim an additional property tax deduction when paying their 2017 taxes if they pay the tax this year and if the local tax authority has notified homeowners prior to 2018 of how much they owe in property taxes, known as a tax assessment. State and local laws vary as to when this occurs.
For individuals who rushed to prepay their property taxes based on estimates about how much they’d owe, the decision could prove a frustration as it may be difficult to cancel those payments. Local tax officials in affected localities will now be forced to interpret the decision for their residents.
Source: Washington Post
Get ahead of the tax deadline; act now to file, pay or request an extension
04/08/2024 No Comments