The ink is scarcely dry on the Republicans’ new tax bill. But Westport tax collector Harry Whiteley has sent this message to residents: Changes will affect your 2018 federal tax return.
He explains:
Both the House and Senate passed federal tax plans that impact deductions on property taxes that all Westport residents need to consider. The new federal tax law allows individuals to choose how to utilize state and local property and income tax deductions. In 2018, there will be a $10,000 cap on the deduction for state and local property taxes or of income and sales tax.
These taxes are due in 2018. However, they may be paid in advance — before January 1, 2018 — so they may be deducted under current IRS rules:
- 2016 Grand List 3rd installment real estate taxes (due 1/1/2018)
- 2016 Grand List 4th installment real estate taxes (due 4/1/2018)
- 2016 Grand List 3rd installment personal property taxes (due 1/1/2018)
- 2016 Grand List 4th installment personal property taxes (due 4/1/2018)
- 2016 Grand List supplemental motor vehicle taxes (due 1/1/2018)
These are the only taxes for which pre-payment may be applied.
Payments by mail must be postmarked by December 31. Include a self-addressed, stamped envelope if a receipt is desired.
To view and pay your bills online, click here.
If your real estate taxes are escrowed (paid by your bank), you must contact them to discuss payment scheduling.
Taxpayers should consult with their personal tax advisor to confirm that the early payment is appropriate.
Happy holidays!