The federal tax code changes came into effect from January 1, 2018. There was an unprecedented rush seen among the people to prepay the property taxes. There were different opinions about the new taxes among the Chicago area people. The residents of Cook County believed that the tax deduction plans will be in their favor. The collar counties had a different opinion.
The latest federal tax law puts a cap on the amount of local and state income tax, and property tax that one can deduct from their income tax return in $10,000. The residents who pay off their property taxes ahead of the proposed law can get the amount waived off on their 2017 income tax returns. They need to prepay their taxes before the new cap of $10,000 comes into effect.
The standard deductions have doubled to $12,000 for single taxpayers and $24,000 for joint tax filers along with their spouses. The taxpayers with itemized deductions like mortgage interest or property taxes will get more by making the standard deduction claims for 2018.
The collar-county officials are accepting prepayments. But, they are advising the residents to consult with their tax advisers before making the payment. The Cook County officials are offering the first property bill for 2018 to the residents. This allows taxpayers to prepay that amount and get it deducted from 2017.