The new tax reform bill signed into law by President Trump reduces the amount of state and local taxes a person can claim as deductions on his or her 2018 federal tax return and fewer people may itemize deductions on their 2018 return because there’s a larger standard deduction. The federal tax legislation that takes effect January 1 will cap the state and local deductions on federal tax returns at $10,000. Since the passing of the tax bill, there’s been much discussion about whether or not residents could prepay their 2018 property taxes before the end of the year.
t’s official in Tredyffrin Township and the answer is no to prepayment of property taxes. The bottom line is, unless there’s an assessment and a bill issued, you’re not able to take the deduction The notice below was posted on the Tredyffrin Township’s website yesterday:
2018 Property Taxes Pre-Payment Information
To all Township Residents:
This notice is being posted to address inquiries we have received from several resident homeowners about prepaying 2018 real estate taxes. Please be advised that Tredyffrin Township cannot accept prepayments of 2018 real estate taxes.
The Township is prohibited by the Pennsylvania Local Tax Collection Law (specifically, 72 P.S. §5511.15) from collecting taxes that have not been assessed yet. The Township does not issue the new tax assessment until January of 2018 and therefore cannot accept payments before that point in time.
Also, be aware that the IRS issued an advisory notice on December 27, 2017 that it will not allow any deduction in 2017 for 2018 property taxes unless those taxes were assessed and paid in 2017. As stated above, the Township’s assessment will not be made in 2017, because the millage rates will not be set until January 2, 2018 at the Organizational Meeting of the Board of Supervisors. The IRS’s advisory notice can be found at: https://www.irs.gov/newsroom/irs-advisory-prepaid-real-property-taxes-may-be-deductible-in-2017-if-assessed-and-paid-in-2017.