Coping with the Federal Tax Code Overhaul, Clavin Urges Homeowners to Pay April 2018 School Taxes Now and Deduct Taxes on 2017 Return

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As Congress wrestles with a major overhaul of the Federal Tax Code, which may eliminate or cap deductions for expenses such as property taxes, Hempstead Town Receiver of Taxes Don Clavin is urging property owners to expedite certain property tax payments in order to take advantage of property tax deductions before a new tax code is enacted.  In specific, homeowners who pay their second half school taxes before January 1, 2018 may be eligible to deduct the payment for federal income tax purposes on their 2017 returns.  The second half taxes are due on April 1, 2018; however, if property owners wait until the due date to make payments, they will likely not be able to deduct the full amount of property taxes under the federal tax code being hammered out in Washington. Also joining Clavin at today’s press conference were Senior Councilwoman Dorothy Goosby and Councilmembers Ed Ambrosino, Bruce Blakeman, Erin King Sweeney, Anthony D’Esposito and Dennis Dunne, Sr.

“The proposed federal tax overhaul will adversely impact many people in our area, and I am focused on finding any possible way to help local taxpayers,” said Clavin.  “Many homeowners may be able to take deductions on their school taxes that are due in April of 2018 by paying them by December 31st of this year.”

School taxes are collected twice each year, once in October and again in April.  Some homeowners have called Clavin’s office, expressing an interest in paying the April school property taxes prior to the end of this year in order to be able to deduct the payment.  Clavin has consulted with tax professionals who indicate that property owners who fall below the Alternative Minimum Tax threshold may qualify to deduct their second half school tax payment on their 2017 income tax return if it is paid prior to the end of 2017.  The Receiver did emphasize that individuals should consult with their tax professional to determine if they meet eligibility requirements. 

“Don’t miss your opportunity to maximize your tax deductions,” said Clavin.  “I urge homeowners to consult with their tax professionals to determine if they can reduce their income tax burden by paying their April school tax bill before December 31st of this year.”

“The new federal tax code could negatively impact our residents, and these valuable tips give our taxpayers one more opportunity to benefit from the current tax code before it expires,” Goosby said. “We encourage residents to consult their tax professionals to determine if it will be beneficial to pay school taxes before the end of this year,” Ambrosino added.

“Time is running out on the current federal tax code, and this is one way that our taxpayers could potentially benefit before it expires,” Blakeman said. “By paying your next tax bill by December 31st, you could deduct a portion of your property taxes that may not be deductible under the new federal tax code,” King Sweeney said.

While many taxpayers may elect to pay their second half school taxes (April school taxes) in the 2017 year, property owners will NOT be able to pay their 2018 general property taxes prior to the January 1, 2018 due date.  In specific, Nassau County’s Administrative Code expressly prohibits the payment of general taxes in the year prior to the one in which they are due.  The County’s Administrative Code states (in part) that general taxes “…shall be due and payable on the first day of January, and the remaining and final one-half of such taxes on real estate shall be due and payable on the first day of July…”

Clavin has staff prepared to answer questions about hours of operation, payment locations, payment options (cash, e-Check, credit card, check) and other issues related to the early payment of second half school taxes (staff will not be able to advise property owners on income tax questions, including eligibility for deductions).”

“Our knowledgeable Receiver of Taxes office staff is prepared and ready to accept school property tax payments before the New Year for neighbors who want to deduct them on their 2017 tax returns,” D’Esposito said. “Take this advice, speak with your tax professional, and consider paying your school bill by December 31st to benefit from the current tax code before it’s replaced by new regulations,” Dunne added.

“Now is the time to consider your options when it comes to making an early payment of your April 2018 school taxes,” concluded Clavin. “Speak to your tax professional today to determine if you are eligible to make an early payment of second half school taxes or any other possible payments, and deduct the amount on your 2017 income taxes.”