Menendez wants IRS to rescind directive on prepaid taxes
TRENTON, N.J. (AP) — New Jersey’s senior U.S. senator wants the IRS to rescind its directive that would bar taxpayers from deducting their prepaid 2018 property taxes from their 2017 federal taxes.
The IRS announced late last year that some homeowners who prepay local property taxes due in 2018 will be able to claim the deduction on this year’s returns, but only if the taxes have already been assessed and billed. The agency said people couldn’t guess at what next year’s assessment might be, pay it and then claim a deduction for that amount.
Menendez made the request in a letter Tuesday that was also signed by the state’s other U.S. Senator, Democrat Cory Booker, and its seven Democratic House members.
The letter states “any reasonable interpretation” of the law means payments made before 2018 are fully eligible for a deduction in 2017.