[Habs11]

Anyone else going to prepay their 2018 taxes today/tomorrow/over weekend in anticipation of taking advantage of the current/new tax law?

My town is able to receive payments only Friday (12/29) unless mailed with postage marked in 2017.

This isn't a debate on the new tax law just a thread to poke interest because it may save some folks $$$. There are many different scenarios - in my case I itemize but won't next year so I'm throwing deductions all around.

[RickFLM4]

I believe they need to be assessed not just prepaid to take a deduction, so I suggest checking into that aspect before prepaying.

[Habs11]

Originally Posted by RickFLM4

I believe they need to be assessed not just prepaid to take a deduction, so I suggest checking into that aspect before prepaying.

Our property tax bills are usually created in January - the local gov's just expedited the timing because the work had already been done (assessments and tax levy)

[paimon.soror]

Same here, except i just found out that my bank's closing on 2017 taxes was actually yesterday (i have my property tax escrowed).

[rad doc]

https://www.msn.com/en-us/news/us/ir...b6u?li=BBnb7Kz

[RickFLM4]

Originally Posted by Habs11

Our property tax bills are usually created in January - the local gov's just expedited the timing because the work had already been done (assessments and tax levy)

Ok that's good. Not every jurisdiction is doing so.

[paimon.soror]

Originally Posted by rad doc

https://www.msn.com/en-us/news/us/ir...b6u?li=BBnb7Kz

Yep again key here being that assessments needed to be made. Typically if you received a bill for January, thats all set. The article above really impacts people who are prepaying taxes based on last years assessments.

[kscarrol]

Bills were available on the 26th, paid yesterday.

[Maestro]

In PA you're not allowed to prepay, state law prohibits local county and school property taxes from being collected early and before the bill is sent. Just just read that NY and NJ pass a rule to allow prepay otherwise they had the same issue as PA.

I figure out the standard $24K deductions along with the $10k property and interests tax limit is just a little less than what I have itemized in past yrs. I have been writing of less and less mortgage interest since I'm nearing the end of the loan. The $24k in the coming years will help.

[jpdchicago]

I prepaid mine on line last week.

[bimmer456]

So that trump payroll tax cut that comes in February will be offset by not being able to deduct state and local taxes from federal taxes. It's just exchanging one tax for another, a tax cut in name only. Increasing the standard deduction is yet another fake tax cut, most people will be impacted by the $10K limit if you're in the middle class. Pre-payment is no guarantee and what about next year?

[RickFLM4]

Originally Posted by bimmer456

So that trump payroll tax cut that comes in February will be offset by not being able to deduct state and local taxes from federal taxes. It's just exchanging one tax for another, a tax cut in name only. Increasing the standard deduction is yet another fake tax cut, most people will be impacted by the $10K limit if you're in the middle class. Pre-payment is no guarantee and what about next year?

People should analyze all pieces of the changes together, including AMT, based on their individual circumstances. Try to apply new rules to last year's return. Not difficult and gives you a good idea of impact.

[bimmer456]

The corporate tax cut is supposed to trickle down to us in the form of higher wages. Maybe they should make that mandatory if corporations want a tax cut. Lower taxes and raise the minimum and average wages.

[BayMoWe335]

Originally Posted by bimmer456

The corporate tax cut is supposed to trickle down to us in the form of higher wages. Maybe they should make that mandatory if corporations want a tax cut. Lower taxes and raise the minimum and average wages.

Raising minimum wage doesn’t work. Econ 101.

[pz619]

Yep I’m preparing tomorrow. I just learned of this yesterday.

[pz619]

Originally Posted by bimmer456

The corporate tax cut is supposed to trickle down to us in the form of higher wages.

It won’t and sure hope you aren’t counting on this.

[mikeyymonster]

https://www.irs.gov/newsroom/irs-adv...d-paid-in-2017

[bimmer456]

Originally Posted by pz619

It won’t and sure hope you aren’t counting on this.

That was my point with the rest of my comment.

[Maestro]

Originally Posted by bimmer456

So that trump payroll tax cut that comes in February will be offset by not being able to deduct state and local taxes from federal taxes. It's just exchanging one tax for another, a tax cut in name only. Increasing the standard deduction is yet another fake tax cut, most people will be impacted by the $10K limit if you're in the middle class. Pre-payment is no guarantee and what about next year?

Most people never deducted their state taxes. Two examples, NY only 40% of the people itemized, so 60% never saw the benefit, in California only 20% itemized. The two states with the highest personal income tax never deducted them on their taxes.

This information came from the IRS and was shared this week in the news. This is the reason the Fed got rid this deduction, most people do not even bother using them.

All I know is I'll now pay less on capital gains and dividends, the feds upped the limits at witch you start paid this tax. If you make less then $75k you do not have to pay capital gains.

[Maestro]

Originally Posted by bimmer456

The corporate tax cut is supposed to trickle down to us in the form of higher wages. Maybe they should make that mandatory if corporations want a tax cut. Lower taxes and raise the minimum and average wages.

If you have 401k or other retirement investments as company profits go is you'll investments will go up. Part of the reason the market did so well this year, was this new taxes. I saw some significant increases this year. So as companies do better I'm doing better. BTW, I do not invest in mutual funds, I only invest in specific companies. So my gains were not watered down by poor performers you'll find in most mutual funds.

[bimmer456]

Originally Posted by Maestro

If you have 401k or other retirement investments as company profits go is you'll investments will go up. Part of the reason the market did so well this year, was this new taxes. I saw some significant increases this year. So as companies do better I'm doing better. BTW, I do not invest in mutual funds, I only invest in specific companies. So my gains were not watered down by poor performers you'll find in most mutual funds.

Same here, I've been saying this in the forums, forget about mutual funds just buy individual stocks of high performing corporations. I've been making a killing, it's great, hopefully the corporate tax cuts will help shareholders and we should all become shareholders as wages are likely only going up for the few and not the many.

[Ross61]

If you are living in a state where it matters - highly recommend you do everything possible to change out the official elected to run your state and the manner which your money is spent (and stolen from you by said "officials."