Do Not Pre-Pay 2018 State Taxes

[sblatner]

The tax deduction for prepaying 2018 state taxes has been disallowed today. You can pay what you owe for 2017 but not prepay 2018.
___________________________________
In a pre-emptive move against accounting maneuvers in high-tax states such as New York and California, the bill prohibits taxpayers from prepaying next year’s state and local income or property taxes, in order to deduct them from 2018 taxes. That form of tax planning would have allowed taxpayers to benefit more from the full state and local deduction this year before it is capped next year.

[corn18]

Thanks for the heads up. I was trying to figure out if I could prepay my 2018 state taxes. In my state, it's not allowed. Turns out it doesn't matter, so, yeah!

[sblatner]

I'm in California and prepaying is allowed. We just have to make sure to pick 2018 in the drop down window. Was just discussing this with an accountant friend today to prepay and four hours later, news comes out that it won't be allowed.

[Oxygen]

I know, this year was very hard for everyone. Covid-19 has impacted all spheres of business. I work in the investment business, so I know what I say. But I’m glad that this year is over soon. I know that post-crisis tax system will be better and more viable. During this year many people lost their jobs. So, employers will no longer pay salaries tax. I know that government will support business holders and employers. I hope it will be easier to survive after this crisis. I often ask for help the APM Accountants firm who work in the accountant and audit spheres. They are situated in Dublin. This firm is great help for me in my investment business. So, I sincerely hope that next year will be much better for all of us.