25 Apr Prepaying property taxes for a larger deduction
Photo: pixabay.comQ. I prepaid half of my 2018 property taxes in 2017 to get the full deduction before the federal $10,000 limit went into effect for 2018. My property tax for 2018 was billed for $25,000, but I paid half in each year. Must I use the amount actually paid in 2018 on my New Jersey tax return? I would like to get the whole $15,000 property tax deduction for 2018 if I can.
— Still working
A. Here’s how it works.*
“You can use the lesser of the amount of 2018 taxes paid in 2017, plus the amount paid and due in 2018 for 2018, or $15,000 for your New Jersey tax return,” said Howard Hook, a certified financial planner and certified public accountant with EKS Associates in Princeton.
* The original post mistakenly said you can only take the deduction in the year the taxes were due and paid. We regret the error.
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This story was originally published on April 25, 2019.
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