Due to the likely elimination of almost the entire SALT deduction in 2018, this could be the last opportunity for taxpayers to pay state and local taxes and still ensure a full federal tax deduction. Keep reading to learn more.
Last week, we issued an Alert concerning what seems to be the hot state tax topic of the month: whether taxpayers can pay all or a portion of their 2018 estimates before the end of the year. As noted in our prior post, because of the likely elimination of almost the entire SALT deduction in 2018, this could be the last opportunity for taxpayers to pay state and local taxes and still ensure a full federal tax deduction.
At the time of our last posting, taxpayers could make payments through their on-line account, but the paper estimated tax voucher forms were not yet available on the Tax Department’s website.
Today, the New York State Tax Department released the 2018 estimated tax vouchers on their website along with instructions for the form. This follows a wave of states who have done the same thing, including Connecticut, New Jersey, and even an "advance draft" from California.
So clearly, states are willing to allow taxpayers to pay these estimates early, and they are making it easier for individuals to do so by issuing forms and guidance. It’s also evident that these states believe that the payment of these 2018 estimates could create an available 2017 deduction. But ultimately this is a federal issue, and though it seems most practitioners (us included) believe that a deduction should be available, you should consult with your tax advisor before making any final decisions.
