With a bunch of big changes on the line, it’s like the Trump administration is deliberately trying to confuse the citizens. And that’s how an important question emerged: Are property taxes deductible in the US?
The IRS was quick to respond to the questions but did it in late fashion and now everyone got what they were hoping for. To have your taxes deductible in 2018, you’ll need to fill some conditions. The first one was that U.S. taxpayers had to pay those tax bills before the end of 2017 if they want to deduct their 2018 state and local property taxes on their 2017 returns. The second one is also extremely important – the taxes have had to be assessed before 2018.
Confusion is a soft word, considering that there are some states, like New York, who have different agendas regarding property tax fiscal year. For New Yorkers, this goes from July 1 through June 30, and people can pay their property tax bills for the third and fourth quarters before the due dates. Of course, each state has its offices where people can reach out for help if they have any concerns and questions.
If we’re talking about the 2018-2019 tax year, find out that it won’t be completed until May, so your property tax bills for July 2018 through December 2018 will be established sometime in June.
Most citizens received the whole property taxes deductible news with confusion, but people from states like New York, Illinois, and California, who pay higher local taxes, got it loud and clear when Trump signed the new Tax Cuts and Jobs Act: there will be a 10,000 limit on deductions for state and local taxes that will take effect starting this year.