New Tax Law Update
Both houses of the U.S. Congress have passed the Tax Cuts and Jobs Act of 2017 and the bill will be sent to the President who is expected to sign it into law. Assuming the bill becomes law, effective with the 2018 tax year, standard deduction amounts and certain itemized deductions will be changed.
If you file your Federal tax return as single, the standard deduction amount will increase to $12,000. If you file as married filing jointly, the standard deduction amount will increase to $24,000. For some taxpayers, these higher standard deduction amount will mean that it will no longer be necessary to itemize deductions.
For those that can still itemize deductions, the new law will also place a cap of $10,000 on the deductions one can take for state and local income taxes and property taxes paid. This is $10,000 COMBINED – not for each type of tax.
Considering this new cap and depending on your circumstances, it could make sense to pay any 4th quarter Illinois estimated tax payments and/or pay real estate taxes that would normally be paid in early 2018 before 12/31/2017.
For those owning property in Cook County, you can visit the Cook County Treasurer’s website for details on pre-paying your 2017 First Installment property tax bill before the end of this year.
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