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Paying your property taxes early? Know the rules

NEW YORK — You may have heard politicians in New York, New Jersey and Connecticut encouraging you to pay your 2018 property early.  However, paying those property taxes early may not be as straight forward as you think.

Many are paying early comes because of a clause in the new Republican tax plan.  Beginning in 2018, people will only be able to deduct up to $10,000 in local taxes. By paying next year’s taxes before the end of 2017, and writing off the money now, people can save big next tax season.

Mayor Bill de Blasio encouraged any New Yorkers who could afford to pay early, to do so.

“Most of the 600,000 New Yorkers who will be negatively affected average income under $75,000 a year,” de Blasio said while blasting the Republican plan.  “So this is working class and middle class people who will take the hit in this city”

The Internal Revenue Service issued the following guidance about paying early: you can deduct early 2018 property tax payments in 2017 if your city, town or county issues a property tax bill or assessment by the end of the year.

In New York City, assessments have only been issued for the first half of next year.  But to make matters more confusing, the city and other places are letting people guess at their property tax amount for the second half of next year— and pay that amount early— even with no guarantee that will make a difference.

The mayor did stress during his comments that anyone considering paying property taxes early might be best served by consulting with a accountant first.