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Taxes?!
I’m confused?! My property taxes are $7900, I have 2 kids and my husband and I both work... should I be paying my taxes for next year now? I’m off tomorrow and if this is the case I want to go bright and early
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Posted 12/27/17 5:42 PM  |
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Jenn79
One more?
Member since 2/12 2410 total posts
Name:
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Re: Taxes?!
It's your property taxes combined with your state taxes. So if your property is 7900 and you pay say 5,000 in state taxes then $2900 is no longer deductible bc that's over the 10k. But I heard on the news last night there is no guarantee paying anything early will do anything for you. It is ultimately up to the IRS
ETA: my taxes are the same as yours. I have 2 kids too. But I don't work. My dh pays a little over 5k in state taxes I think. My accountant said we will most likely break even bc of the child tax credit going up too. Or just lose a little so we aren't worrying about paying early.
Message edited 12/27/2017 5:55:20 PM.
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| Posted 12/27/17 5:50 PM |
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Re: Taxes?!
Posted by Jenn79
It's your property taxes combined with your state taxes. So if your property is 7900 and you pay say 5,000 in state taxes then $2900 is no longer deductible bc that's over the 10k. But I heard on the news last night there is no guarantee paying anything early will do anything for you. It is ultimately up to the IRS
ETA: my taxes are the same as yours. I have 2 kids too. But I don't work. My dh pays a little over 5k in state taxes I think. My accountant said we will most likely break even bc of the child tax credit going up too. Or just lose a little so we aren't worrying about paying early.
Ok because I plugged into the calculator recommended on another post and it said I would owe close to 11k, I nearly died! NYS I paid 3k to this year, my husband probably 4 since he makes more than I do. Ugh I didn’t realize that it was property AND state! 
I don’t have anything to deduct- no child care, only thing else is student loans!
At least I guess it applies for 2018 and not this current year when I file so I’ll have to start paying more in tax from my check to make sure I break even
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| Posted 12/27/17 6:03 PM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: Taxes?!
Posted by Jenn79
It's your property taxes combined with your state taxes. So if your property is 7900 and you pay say 5,000 in state taxes then $2900 is no longer deductible bc that's over the 10k. But I heard on the news last night there is no guarantee paying anything early will do anything for you. It is ultimately up to the IRS
ETA: my taxes are the same as yours. I have 2 kids too. But I don't work. My dh pays a little over 5k in state taxes I think. My accountant said we will most likely break even bc of the child tax credit going up too. Or just lose a little so we aren't worrying about paying early.
Yes I heard as well that prepaying is not a guarantee. The IRS can decide next year that it doesn't matter when you paid it, you are still on the hook under the new laws.
And I have a feeling they will ultimately do that. The IRS isn't stupid.
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| Posted 12/27/17 6:09 PM |
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Michelle1110
My family is complete
Member since 1/12 2338 total posts
Name:
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Re: Taxes?!
Posted by NervousNell
Posted by Jenn79
It's your property taxes combined with your state taxes. So if your property is 7900 and you pay say 5,000 in state taxes then $2900 is no longer deductible bc that's over the 10k. But I heard on the news last night there is no guarantee paying anything early will do anything for you. It is ultimately up to the IRS
ETA: my taxes are the same as yours. I have 2 kids too. But I don't work. My dh pays a little over 5k in state taxes I think. My accountant said we will most likely break even bc of the child tax credit going up too. Or just lose a little so we aren't worrying about paying early.
Yes I heard as well that prepaying is not a guarantee. The IRS can decide next year that it doesn't matter when you paid it, you are still on the hook under the new laws.
And I have a feeling they will ultimately do that. The IRS isn't stupid.
https://www.washingtonpost.com/news/business/wp/2017/12/27/irs-says-taxpayers-trying-to-use-deduction-that-will-be-scaled-back-can-prepay-2018-property-taxes-only-under-limited-circumstances/
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| Posted 12/27/17 6:20 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Taxes?!
Posted by Michelle1110
Posted by NervousNell
Posted by Jenn79
It's your property taxes combined with your state taxes. So if your property is 7900 and you pay say 5,000 in state taxes then $2900 is no longer deductible bc that's over the 10k. But I heard on the news last night there is no guarantee paying anything early will do anything for you. It is ultimately up to the IRS
ETA: my taxes are the same as yours. I have 2 kids too. But I don't work. My dh pays a little over 5k in state taxes I think. My accountant said we will most likely break even bc of the child tax credit going up too. Or just lose a little so we aren't worrying about paying early.
Yes I heard as well that prepaying is not a guarantee. The IRS can decide next year that it doesn't matter when you paid it, you are still on the hook under the new laws.
And I have a feeling they will ultimately do that. The IRS isn't stupid.
https://www.washingtonpost.com/news/business/wp/2017/12/27/irs-says-taxpayers-trying-to-use-deduction-that-will-be-scaled-back-can-prepay-2018-property-taxes-only-under-limited-circumstances/
So basically you can take the deduction as long as you are "notified" by the jurisdiction what your ACTUAL taxes will be. You can't just guess the amount and pay something blind.
Looks like Nassau County posted their general roll numbers this week. You can get your general tax by going to http://www.mynassauproperty.com
Don't forget to deduct 1% off your SECOND HALF general taxes by paying early. Town Oyster Bay posted the actual amounts that include the 1% discount here. http://oysterbaytown.com/wp-content/uploads/WarrantParcelTax_Report_NoOwner.pdf
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| Posted 12/27/17 6:33 PM |
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muffaboo
LIF Adult
Member since 12/10 3797 total posts
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Re: Taxes?!
Our property taxes are $12k. We usually pay 1st half in Jan and 2nd half in May. DH wants to pay it all by Dec. 31 so we can write it off in April. Since we already got our tax bill, we should be able to do this, right?
ETA: We are Town of Islip
Message edited 12/27/2017 7:51:14 PM.
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| Posted 12/27/17 7:46 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: Taxes?!
The IRS published guidelines about the tax law today. If you have a statement, not estimated, but an actual statement those would be ok to deduct, but not estimated taxes. You should read the guideline, talk to an attorney or an accountant to help you determine whether or not to pre pay your property taxes before January first, 2018 as everyone has different tax situations and you should not rely on any internet statements.
In my house, we pay $13,000 in local taxes. So right off of the top I loose $3,000, with the 2018 $10,000 combined cap, this does not even consider the state income taxes paid. For me, I already know we will end up taking the standard deduction for our 2018 taxes, but not for 2017, we will still itemize for 2017.
By prepaying your actual 2018 property taxes in 2017, it is not to "help" you with your 2018 taxes, it is going to help you with your 2017 taxes if you already itemize and you don't have to pay the AMT for 2017. The reason people are prepaying taxes is not to help your 2018 taxes. It is to help you for your 2017 taxes with the understanding that in 2018 you are no longer going to itemize because the new tax bill makes itemizing untenable for most people. So for 2018 people realize they will just take the standard deduction. But for this year, by prepaying your 2018 property taxes in 2017 you will be able to use them to itemize your 2017 income taxes and pay a lower amount that you might have in 2017. So for us, we paid $13,000 plus $6,600 for $19,600 which will lower our 2017 taxable income by a few thousand dollars.
You should contact an accountant who can individually explain why prepaying may or may not be beneficial for your particular situation. This is not meant as either legal or tax advice.
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| Posted 12/27/17 8:51 PM |
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RainyDay
LIF Adult
Member since 6/15 3998 total posts
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Taxes?!
https://www.irs.gov/newsroom/irs-advisory-prepaid-real-property-taxes-may-be-deductible-in-2017-if-assessed-and-paid-in-2017
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| Posted 12/27/17 8:59 PM |
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Re: Taxes?!
Posted by LSP2005
The IRS published guidelines about the tax law today. If you have a statement, not estimated, but an actual statement those would be ok to deduct, but not estimated taxes. You should read the guideline, talk to an attorney or an accountant to help you determine whether or not to pre pay your property taxes before January first, 2018 as everyone has different tax situations and you should not rely on any internet statements.
In my house, we pay $13,000 in local taxes. So right off of the top I loose $3,000, with the 2018 $10,000 combined cap, this does not even consider the state income taxes paid. For me, I already know we will end up taking the standard deduction for our 2018 taxes, but not for 2017, we will still itemize for 2017.
By prepaying your actual 2018 property taxes in 2017, it is not to "help" you with your 2018 taxes, it is going to help you with your 2017 taxes if you already itemize and you don't have to pay the AMT for 2017. The reason people are prepaying taxes is not to help your 2018 taxes. It is to help you for your 2017 taxes with the understanding that in 2018 you are no longer going to itemize because the new tax bill makes itemizing untenable for most people. So for 2018 people realize they will just take the standard deduction. But for this year, by prepaying your 2018 property taxes in 2017 you will be able to use them to itemize your 2017 income taxes and pay a lower amount that you might have in 2017. So for us, we paid $13,000 plus $6,600 for $19,600 which will lower our 2017 taxable income by a few thousand dollars.
You should contact an accountant who can individually explain why prepaying may or may not be beneficial for your particular situation. This is not meant as either legal or tax advice.
Thank you. This explains things much more clearly to me so I know what to say tomorrow to the accountant...
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| Posted 12/27/17 9:32 PM |
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Re: Taxes?!
We are in Town of Hempstead and opted to prepay school and property taxes today. We walked in at around 4:30pm and the line was out the door...we waited about 45 minutes until we got to the front teller and was able to get the 2018 #s. We escrow our mortgage through Bethpage FCU so we were told to contact them on 4/1/18 to request a new Escrow analysis to reflect the payment. I basically cut a fat check for almost $11K today so I hope they dont pay taxes twice..
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| Posted 12/27/17 9:53 PM |
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