Personal tax deductions will change drastically in 2018, although how much is still unclear. It appears that deductions for state and local income taxes, including non-business real estate taxes, will be capped at $10,000. However, there is still time for individuals to avoid this deduction cap on their 2017 filing by prepaying before the end of the year.
See below from trusted financial advisor for the Law Office of Jennifer Guimond-Quigley, Michael A. Porrey, Jr. with IHT Wealth Management.
What is a Real Estate Tax Prepayment?
In Cook County, homeowners are able to prepay the first installment of that year’s taxes, or 55 percent of the previous year’s bill. That means if in 2016, a homeowner paid $1,000 in property taxes, that homeowner is able to prepay $550 towards the following year’s taxes.
Why Should I Prepay My Real Estate Taxes?
Property taxes frequently increase in Cook County, and many residents pay more than $10,000 per year. Because the new tax plan caps the overall deduction, including state and local income taxes, at $10,000, homeowners will end up paying more money moving forward. By prepaying prior to Jan. 1, homeowners are still able to take advantage of the deduction without the cap.
How Do I Prepay?
There are several ways to prepay your taxes:
- Online: Go to the Cook Country Treasurer website and select “Prepay Your 2017 Taxes.” You can use your bank account or credit card to pay.
- Mail: Visit the the Cook Country Treasurer website and print a copy of your prepayment bill by choosing “Download Your Bill” and entering your PIN or property address. Send the prepayment bill and your payment to:
Cook County Treasurer
PO Box 805436
Chicago, IL 60680-4115 - In person: Submit the prepayment bill and payment at a Chase branch bank or the Treasurer’s Office, 118 N. Clark St., Room 112, Chicago.
Please feel free to reach out if you have questions.