To prepay or not to prepay state and local taxes? Here's what you need to know about the prepayment of state and local taxes. Beginning in 2018, deductions for state and local sales, income, and property taxes remain deductible but are limited: The amount that you can deduct for all state and local sales, income, and property taxes may not exceed $10,000 ($5,000 for married taxpayers filing separately). Amounts paid in 2017 for 2018 state or local income taxes will be treated as paid in 2018. However, because county residents wish to prepay their 2018-2019 property taxes in 2017, County B has revised its computer systems to accept prepayment of property taxes for the 2018-2019 property tax year.

Source: Forbes December 27, 2017 23:48 UTC