To the Editor:
One of the provisions of the just-signed GOP tax plan says you will not be able to deduct state and local taxes in excess of $10,000 after 2017. The headline in the Record says many people want to prepay 2018 property taxes early to avoid this cutoff. Kendall County Treasurer Jill Ferko says they would accept such payments even though they are not due until June 2018.
Did anyone ask the IRS if you can deduct these early payments? Apparently the treasurer did not. The IRS just issued an advisory saying you can only deduct 2018 property taxes if they are due on or before Dec. 31, 2017. Several governors allowed the state treasury to issue a warrant allowing for the early tax payment and the IRS said that is OK. Gov. Bruce Rauner was not one of those forward thinkers. It will take a while for the IRS to refigure your income tax bill and add whatever interest or penalties and send you the notice. Another reason why this rushed tax bill is a mess.