If you are one of the 30% of Americans who itemize deductions on your federal tax return, consider paying your Philadelphia taxes before the end of 2017.
Currently, the federal government allows taxpayers to deduct state and local taxes from their reported income. This reduces their federal tax bill.
But, Congress has passed sweeping changes to the federal tax system. These changes could limit the state and local tax deduction from your federal tax return. Other changes may also limit your opportunity to itemize deductions.
Think about paying your 2018 state and local taxes before the end of 2017.
Doing so may allow you to take advantage of the state and local tax deduction, before the law changes. In Philadelphia, these taxes include:
- Real Estate Tax
- School Income Tax
- Earnings Tax– first estimated payment
Don’t forget! By paying early, you’ll also get a 1% deduction on your Philadelphia Real Estate Tax.
This post is based on our preliminary analysis and does not constitute tax advice. Remember to talk to a tax professional before making financial decisions.
