Raymond Community News


Deadline Nears to Prepay 2018 Property Taxes for 2017 Deduction
By Leslie O’Donnell   12-27-17

For any of you with some extra money burning a hole in your pocket, paying 2018 property taxes before the end of December 2017 may be just the ticket.

Federal income tax law for decades has allowed people to deduct state and local taxes, including property taxes, from their income on their tax return. That continues under the newly passed federal tax reform bill, but only up to $10,000 per year. And for some New Hampshire homeowners, including those in Raymond, their property tax bills well exceed that amount.

So when President Donald Trump signed the tax reform into law on Friday, Dec. 22, some Granite Staters began contacting their local tax collectors to see about paying all or a portion of their 2018 taxes before Dec. 31, 2017.

On Friday, Dec. 22, Raymond Town Clerk/Tax Collector Sharon Walls said three people had contacted her and told her they planned to pay their 2018 taxes the following week, before the new year. She expects more to follow, and said that other towns are experiencing the same interest in prepayments.

The late signing of the tax bill gives residents only a tiny window in which to gather up the money to pay some or all of their 2018 taxes and claim the sum on their 2017 tax return. New Hampshire RSA (statute) 80:52-1 allows residents to pay ahead up to two years and claim the tax payment on the current tax return, but in Raymond, the selectmen allowed pre-payment for only one year.

Thus, Raymond residents can pay some or all of their 2018 taxes by Dec. 31 to claim them for 2017. The prepayment is kept in a separate account.

Currently there is no limit on how much homeowners who itemize their federal tax returns can claim as a property tax deduction; thanks to the new federal tax law, that changes to the $10,000 cap on Jan. 1, 2018. New standardized deductions will also be in place in 2018.

Walls said homeowners can prepay for 2018 up to the amount of their taxes in 2017. Thus, if a homeowner paid $11,000 in property taxes in 2017, he or she could pay up to another $11,000 and claim the total on their 2017 income tax return – if the money is paid by the end of the year.

Walls said the law requires the tax collector to use the mailing date of a tax payment to determine whether it is paid in time. Thus, if on Jan. 2, the Tax Collector has prepayments mailed in envelopes with postal cancellations stamped Dec. 29, the last working day of the month, the prepayments would be accepted.

As with any financial decision affecting taxes, residents are encouraged to check with the Internal Revenue Service.

Read another article from the Union Leader
Tax law has some in NH looking to prepay property taxes .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Raymond Town Office
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895-4735

Raymond NH Website

 


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