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Tax Savings Opportunity – Prepaying your property tax

gears Tax Savings Opportunity – Prepaying your property tax tax preparation 60174We are contacting selected clients regarding a tax saving opportunity that is now available as a result of tax reform (Tax Cuts and Jobs Act) that was passed today.

You may benefit from prepaying your property taxes.

This legislation has limited the deductibility of property taxes for 2018 and beyond. In certain scenarios, it will be beneficial to pay your 2018 property tax bill before the end of 2017 and capture the deduction before it is lost.

The following must all be true to benefit on your 2017 tax return:

  • Itemize deductions
  • Pay Property tax
  • Do not pay AMT tax
  • Have the funds available to make a payment before the end of the year

Every county has different rules for prepaying your property taxes. For example, here are instructions for Kane County, Illinois: http://kanecountyconnects.com/2017/12/how-to-prepay-your-kane-county-property-tax-bill-and-potentially-save-money/

Please contact us if you would like us to analyze your specific situation to determine if prepaying your property taxes will be beneficial.

Why is my paycheck lower this month?

Increased Illinois tax withholdings!

The Illinois state legislature has recently enacted several ways for all of us to help with its fiscal problems – in the form of new tax law associated with the recent budget.

For your enjoyment….

– individual tax rate increase from 3.75% to 4.95%
– corporation tax rate increase from 5.25% to 7.00%
– limits to some deductions and credits for high income taxpayers

There were some taxpayer friendly provisions…

– New credit for teacher expenses
– Increased credit for K – 12 tuition
– Increased Earned Income Tax Credit

Wage earners will notice more withholding starting in July. Those making estimated payments on the state level may need to adjust those amounts.

Give us a call if you you have any questions or would just like to participate with us in the time-honored tradition of complaining about taxes.

http://www.revenue.state.il.us/…/Bullet…/2018/FY-2018-01.pdf

Who can be a dependent?

Dependent? It Depends…

It is pretty well known that parents can take their children as dependents while they are in college. What about after college if they take a while to get started? What about parents that you support? Here is a good article on point:  Who can be a dependent?  As always, give us a call if you need more on this.

 

Tax Scams/Consumer Alerts

Tax Scams, Security, and what WE are doing about it

We have touched on this topic before but scammers are continuing to evolve. We still hate these guys.
The IRS recently finished a Security Summit. The takeaways?

• Scammers will still use aggressive and threatening phone calls but there has been a significant uptick in email Phishing and Malware
• Scammers creatively focus on new or confusing tax laws
• Scammers frequently go after elderly taxpayers
• Scammers are now targeting tax preparers

This last one is important and we take it seriously. At Fox Valley Tax Solutions we have implemented an Information Security Plan recommended by the IRS to ensure we are doing our part to safeguard Taxpayer Data. Not all tax preparers are up to speed on this!

Did we mention we hate these guys?

Source: Tax Scams/Consumer Alerts