Hundreds of Floridians are asking if they can pay their property taxes early.
Homeowners in the D.C. area with some extra money on hand are hustling to prepay their 2018 property taxes before the new tax law takes effect January 1. Singles and heads of households will see a similar pull toward using the standard deduction.
On Wednesday, the IRS said pre-payments may be deductible if they are made before the end of the year and if the tax was assessed prior to 2018. "My husband did a little quick math this morning, and he said, 'Yes, it's worth it". (Many now taking the deduction could also decide to stop itemizing, especially given the new system's boost in the standard deduction for non-itemizers). That percentage decreases as income increases.
So for those who itemize or think they might, time is running out.
Still, while you can't prepay income taxes, you can prepay property taxes.
Orange Tax Collector Scott Randolph said the bill signed by President Donald Trump last week will have a sweeping impact on people's property tax bills beginning next year and in 2019, when next year's federal income taxes are filed. "What's new is the level of interest this year".
The action follows Gov. Andrew Cuomo's executive order which allows the prepayment, as long as a tax warrant is issued.
President Trump signs tax overhaul, Obamacare mandate repeal into law
Republican lawmakers and administration officials contend that the massive tax cuts will spur economic growth for years to come. Trump has said he hopes to tackle infrastructure , an issue on which he believes he can garner Democratic support.
Tax collectors offices across the country are being inundated with questions about paying property tax bills early. And two, Florida tax collectors are not allowing it. Those who pay their 2018 taxes before December 31 may be able to write them off in full on their 2017 tax returns. "In particular, there will be a cap on the amount of property taxes that can be written off in the amount of $10,000".
Residents lined up before the doors opened Tuesday at the Sacramento County Administration Building to do something people aren't normally so eager to do: pay their taxes early.
Meanwhile, accountants and lawyers are scrambling to understand the new tax bill and its ramifications so they can advise their clients. "And we're waiting for better guidance from the federal government". "Many taxpayers will not be able to come up with thousands of dollars suddenly between Christmas and New Years Day to pay taxes in advance".
In Onondaga County, property tax bills are available online and can be paid starting Wednesday.
"Tenafly is accepting prepayment", Mayor Peter Ruskin said.
"For me it's just a missed opportunity for no real good reason - that's what makes you sick", he said.