Homeowners across country rush to prepay their 2018 property tax today, here's why you should too

Counties throughout Southeast Minnesota saw a surge in early payments of property taxes this week.


                            Homeowners across country rush to prepay their 2018 property tax today, here's why you should too

As the new Republican tax law kicks in on January 1, 2018, homeowners across the country are rushing to prepay their 2018 property tax, way ahead of their due date. People are doing so in hopes of putting off one effect of 'The Tax Cuts and Jobs Act' which President Donald Trump signed into law last week.

U.S. President Donald Trump talks with journalists before signing tax reform legislation into law in the Oval Office December 22, 2017 in Washington, DC. Trump praised Republican leaders in Congress for all their work on the biggest tax overhaul in decades. (Photo by Chip Somodevilla/Getty Images)

The Republican tax overhaul caps at $10,000 the amount of state and local taxes that filers can deduct from their federal tax bill. This means that for those people whose tax bills exceed the particular amount regularly could benefit by paying more taxes this year. The tax deduction has no limit in 2017.

U.S. President Donald Trump signs sweeping tax reform legislation into law in the Oval Office at the White House December 22, 2017 in Washington, DC. Trump praised Republican leaders in Congress for all their work on the biggest tax overhaul in decades. (Photo by Chip Somodevilla/Getty Images)

Homeowners across the United States are rushing to pay their property taxes (Getty Images)

Post Bulletin reported that counties throughout Southeast Minnesota saw a surge in early payments of property taxes in an attempt to cash in on the deduction one final time.

"My tax person was looking out for me," the news outlet quoted a Rochester resident as saying. He said that his tax assistance called him and alerted him of the potential advantage of paying early property taxes.



The director of Olmsted County's Property Records and Licensing Office, Mark Krupski, however, said that state income taxes cannot be paid early, but property owners can benefit by prepaying their local property taxes to increase the deductions this year.

People queuing up to file their taxes. (Getty Images)

"This is probably the only piece you can do," Krupski said. The director also added that the Olmsted County office witnessed a steady stream of people coming in ever since the Republican tax law was signed, according to reports.

U.S. President Donald Trump holds up a copy of legislation he signed before signing the tax reform bill into law in the Oval Office December 22, 2017, in Washington, DC. Trump praised Republican leaders in Congress for all their work on the biggest tax overhaul in decades. (Photo by Chip Somodevilla/Getty Images)

The news outlet stated that the Olmsted office took in $600,000 in 2018 property taxes so far this week while nearly $1.25 million was paid in advance taxes last week.



Other counties in Minnesota also saw a similar surge in the filing of property tax in these two weeks, according to reports.

Not all the homeowners fall into the same tax category, some may not benefit from the paying early taxes (Getty Images)

A Goodhue County property tax division staffer said that the office reportedly saw more prepaid taxes being filed on Tuesday than it generally does throughout the month of December. 



Auditor/Treasurer Denise Anderson of Wabasha County said that her officer took in $100,000 in prepaid taxes by 2 p.m on Tuesday. She compared the amount received to the $139,000 prepaid taxes, which were collected throughout the whole year in 2016. 

The Republican tax overhaul comes into effect on January 1, 2018. (Getty Images)

Although many people are rushing to pay their property taxes early, Dodge County's finance director Lisa Kramer, said that "people fall into different categories," adding that their income is a big factor in determining whether they should opt for this option.



Reports state that people who are subject to the alternative minimum tax, known as AMT, will possibly not benefit from paying early taxes. This means that people with higher incomes will likely not get a call from their tax assistants encouraging them to pay early.

People itemizing by more than $24,000 will possibly not see an advantage in paying their property taxes early. 



 

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