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The original item was published from 12/26/2017 3:55:50 PM to 12/30/2017 12:00:01 AM.

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Posted on: December 26, 2017

[ARCHIVED] How could the newly signed tax bill affect you?

From the Scott County Auditor, Cynthia Geis:  
This is being sent to all of you in order to inform you of a potential savings to you in both 2017 and 2018 regarding your federal taxes that will need to be filed by April 15, 2018 and 2019.  This is due to the new tax bill signed into law today.

Of all the items in the bill, I would like to call your attention to one component of it.  In the past, if you itemized your deductions, you were able to claim as a deduction on your federal income taxes, all the state and local taxes paid.  This includes all your state income tax and your property taxes that you paid.  The federal government changed the threshold to a maximum of $10,000.  They also doubled the standard deduction, which will allow more individuals and couples to no longer have to itemize their deductions.  The changes begin in fiscal year 2018 (effective when you file in April 2019).

For some of you, the increase in the standard deduction will be favorable to you, and your need to itemize will no longer be necessary.  For others, this may result in a tax increase for you.

As a benefit to everyone, we are informing you that some counties (including Scott County), will accept prepayments of your 2018 taxes.  What benefit is this for you?  Your state and local taxes for 2017 will include both your 2017 taxes that were paid, as well as your 2018 taxes, since you will have paid them in 2017 (only if received by the County by December 29 -- not postmarked, received).  Additional benefit:  you can claim more of the state income tax that you paid, since you will have most (if not all) of your 2018 property taxes already paid.  Not all counties accept prepayments, so if you do not live in Scott County, please contact your home county to see what their policy is for prepaying taxes.

This could result in a benefit for you for both 2017 taxes (filed by April 15, 2018) and 2018 taxes (filed by April 15, 2019).  If you do not know whether this is a benefit for you or not, please contact your income tax preparer.

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