Are you getting ready to file your tax returns in New Jersey? Many people who rushed to pay their 2018 property taxes before December 1st will not be able to deduct this expense from their 2017 state income taxes, according to research from the New Jersey Society of CPAs. The IRS recently issued instructions that certain 2018 pre-payments were deductible from federal income taxes in 2017.
While this is true at the federal level, the same is not true for state income taxes. Homeowners may be in for an unfortunate surprise when they realize that their attempts at end of year planning to increase their federal property tax deduction will have no impact on their exact 2017 New Jersey income tax returns.
Setting aside a time to talk to an experienced estate planning attorney in New Jersey can give you a great deal of peace of mind and clear planning strategies for your best interests. You need to look to the year ahead and ensure that you’re using strategies that both work for you as well as truly protect your interests.
It can be a minefield to try and decipher tax laws on your own. Thankfully, however, with the help of a lawyer this process can be made that much easier. Sitting down with an attorney and walking through your current strategies to identify whether or not they will still work for you is a valuable exercise and one you should consider carefully.