RIPLEY, W.Va. — On the heels of the U.S. Congress’ passage and President Donald Trump’s signing of tax overhaul legislation, one public accountant is suggesting West Virginians pay income and property taxes by Dec. 31 before the new law takes effect at the start of 2018.
President Donald Trump signed the Tax Cuts and Jobs Act on Dec. 22 after the Senate and the House of Representatives passed the legislation earlier in the week. The law would place a $10,000 limitation on itemized deductions when it comes to income and property taxes at the local and state levels, as well as nearly double the standard deduction.
Matheny and Company AC president Cam Matheny said if a client is able to pay fourth-quarter state estimates and remaining taxes before the end of the year, they should for a possible higher deduction.
“If they carry that over into 2018, they may lose it either because of the limitations of $10,000 total or they may not be able to use it because their standard deductions been doubled, and it just won’t benefit them anymore,” Matheny said.
While the last payment for 2017 is not due until Jan. 15, 2018, Matheny said if people already pay any related amounts, accountants will be able to include the payment when they consider itemized deductions for 2017.
“We’re letting our clients know that you have to pay this anyway, and you’re basically paying two weeks early,” he noted. “Let’s go ahead and get it done to be on the safe side.”
Matheny added if there are any questions, one should not be afraid to contact their accountant.
“I know it’s a busy time of year for them right now, but they’ll be able to give you a hand in letting you know if it will actually benefit you or not,” he said.
MetroNews affiliate WMOV Radio in Ravenswood contributed to this report.