HADDONFIELD, N.J. (CBS) — The clock is ticking if you want to pre-pay your property taxes for next year. It may sound odd but it’s something you can do following the new tax law signed by President Donald Trump
It was a busy Friday inside the Haddonfield Tax Collectors office. Taxpayers decided to come in and pay their property taxes for 2018 before the new year even hit.
“This is the first time I’ve ever paid in advance,” resident Robert Oberholzer told Eyewitness News.
Oberholzer is hoping that paying in advance will save him in the end.
“I feel there’s no real downside except losing interest for a few months but why not try it,” he said.
The tax overhaul signed into law by Trump last week puts a new $10,000 limit on the amount of state and local taxes people can deduct from their federal tax bill.
“What a lot of folks are trying to do is they are trying to prepay taxes for next year with the hope that they’ll get a bigger deduction with their 2017 return if they itemize since there is not a cap on the 2017 taxes,” Cherry Hill CPA Tony Bruce told Eyewitness News.
He admits plenty of questions remain.
“A lot of professionals are confused. We’re still weeding through the details,” he said.
Just this week, the IRS put out a statement that reads: “A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2018.”
In Haddonfield, tax collector Terry Henry says his office is allowing people to pay for the entire 2018 calendar year.
Friday was the last day today to pay in person in Haddonfield and in other boroughs, but if you didn’t make it in person you can still do online before the New Year, however there is a small catch.
“Online you can only pay the two quarters as to what we actually have billed,” Henry told Eyewitness News.
Check online with your local township in Pennsylvania, Delaware or New Jersey online if you want to prepay before Jan. 1, 2018.