Yet
all states take advantage of the deduction, which includes sales tax.
Not exact matches
State and local governments saw a big jump in tax revenues in the final three months
of 2017, due in large part to an increase in the prepayment
of income and property taxes as some high - income residents sought to
take advantage of deductions that will be sharply reduced in 2018.
The bump may be temporary, though, driven in part by the passage
of the Tax Cuts and Jobs Act (TCJA) in December, which motivated some residents
of high - tax
states to prepay their taxes in 2017 in order to
take advantage of the
state and local tax
deduction that's capped at $ 10,000 starting in 2018.
The Rockefeller Institute
of Government, which released a new
state revenue report on Monday, said that «The Tax Cuts and Jobs Act (TCJA), enacted in late December 2017, created strong incentives for some high - income taxpayers to act fast and prepay their
state and local income and property taxes to
take advantage of the expiring tax breaks, namely the
state and local tax (SALT)
deduction, which is capped at $ 10,000 per year as
of January 1, 2018.»
But given that the tax bill severely curtails the
state and local
deduction for most if not all individuals, many more taxpayers could
take advantage of state - level initiatives that essentially reclassify
state and local tax payments as federal charitable contributions.
While most taxpayers accept the standard
deduction, those who itemize
take advantage of the ability to deduct
state and local taxes, especially residents in New York and other high - tax
states.
Cortland County is trying to clarify New York
State Property Tax Pre-Payment Plan, established by an executive order from Governor Cuomo which offers property tax payers the opportunity to pre-pay their property tax bill ahead
of time to
take advantage of deductions that may not be available with the new tax plan.
The concept is to tweak
state law in order for residents to
take advantage of the federal law that expands charitable donation
deductions but restricts to $ 10,000 annually what residents can
take in the way
of federal
deductions on their
state and local income taxes.
No matter which
state they reside, same - sex married couples are now able to
take advantage of the unlimited estate tax marital
deduction at death to pass assets to a surviving spouse without incurring federal estate taxes.
Finally, you can reduce your income taxes by
taking advantage of every
deduction and credit that is legally available to you on the federal and
state levels.