Is Congress giving Christmas Presents? It sounds too good to be true, doesn’t it? But, with the new tax bill that passed this week, there are indeed a few ways to decrease the amount of taxes you pay in 2017.
For those individuals who itemize, consider paying your 2017 real estate taxes that are due in 2018 before December 31, 2017. Starting with 2018, the standard deduction for married filing jointly, head of household and single has effectively doubled to $24,000, $18,000 and $12,000. Because of this, many individuals who have itemized in past years will not qualify to do so after the 2017 tax filing. For local people, LaSalle and Putnam County will accept early payments up to the amount of the previous year’s real estate taxes, Bureau County will allow you to pay 80% of the previous year’s. You do have to make the payment in person. If you live in another county you will have to call the treasurer’s office to see if they will accept an early payment.
If you make charitable donations, consider making your 2018 donations by the end of 2017.
If you pay estimated tax payments to any state, the last payment is normally due by January 15, 2018. It can be made by December 31, 2017, which will make it deductible on your 2017 federal return.
We hope you find this information helpful. And, of course, please consult your tax professional prior to taking any action to make sure these tax savings strategies apply to you. Check back often as we’ll be breaking down this new tax bill and what it will mean to you during the upcoming year.
Happy Holidays to you and yours!