How To Squeeze Out One Last Local Tax Deduction
PHILADELPHIA (CBS) -- City officials expect that the loss of full deductions for state and local taxes in the new federal overhaul will hit Philadelphia homeowners hard, cutting into any savings from lower tax rates. They're suggesting one way to soften the blow.
Pay your 2018 real estate taxes now. That's the pitch from Revenue Commissioner Frank Breslin. He says the impact of the new tax law is still being studied but, for sure, state and local taxes are deductible for the 2017 tax year so paying everything you can by December 31 means you can still get the full deduction.
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"Somebody in the 25 percent tax bracket, that's like getting a 25 percent reduction on their real estate taxes," he said.
Breslin cautions to consult your accountant first. He says also to ask about paying another local tax, the school district tax on unearned income, right away.
"It could be to their advantage to get that filed and paid before the end of the year," he said.