Should you prepay your Property Tax?
You may be considering paying your property taxes that are due in the following year now because you may perceive it as an effective year-end tax planning strategy. The first question that you should, however, be asking yourself is whether or not it is a smart idea.
First of all, are you allowed to prepay your property taxes? The answer to that question is a resounding yes because unlike other forms of tax debt, there aren’t any laws that prevent you from paying early. Now, we shall address the issue of whether or not it is a smart idea to pay one’s property tax bill earlier than is required.
For some taxpayers, the answer to that question is yes. It is this way because accelerating their tax bill expenses will increase their itemized deductions, thereby reducing the amount that they are required to pay in tax bills. On the other hand, this option may not be a good idea for many taxpayers (especially those in high-tax states) because the changes made by the Tax Cuts and Jobs Act (TJCA) swallow up all the benefits.
Before you consider prepaying your property taxes, it is advisable to review your tax situation extensively to ensure that it will be beneficial to you. The simple reason that paying your property taxes early may increase your itemized deductions does not automatically make it a good idea.
Considering that the TJCA has nearly doubled the standard deduction to $24,000 for married couples filing jointly and $12,000 for singles or married couples filing separately, it means that only a few number of taxpayers will itemize.
Still need help deciding whether or not it is a good idea to prepay your property taxes? Call us now at 888-585-8629. We are a tax relief firm dedicated to giving you the best results regarding resolving your tax debts. Our team of qualified professionals is available round the clock to provide you with the assistance you need. Contact us now at 888-585-8629 or 617-430-4674 or send us an email at [email protected].
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