Many current deductions will save you little or no tax if paid in 2018 based on the 100% proposed increase in the standard deduction, along with repeal or restriction of many itemized deductions, made by the House and the Senate.
Consider writing checks by December 31, 2017 for the following:
1. Fourth quarter State or local estimated tax payments - Normally due January 15, 2018 as well as any significant 2017 state or local balance due expected in April. There is no need to prepay Federal payments as they do not qualify as itemized deductions.
2. Property Taxes - Normally paid in January. This particularly applies to real property in Philadelphia, Florida, South Carolina, and Texas, because 2018 invoices have already been mailed.
3. Medical Expenses - If you normally exceed the threshold, prepay your medical expenses including insurance premiums, and other medical expenses that have already been invoiced.
4. Unreimbursed Employee Business Expenses - For example, auto, telephone, internet and computer expenses. This does not include self-employment (Schedule C) expenses.
5. Moving Expenses - For example, moving vans, travel, and lodging.
6. Charitable Deductions - If you are currently itemizing but not itemizing under the new higher standard deduction.
For more information on how you can prepare for the new tax changes please call our office 610-544-5900 to speak with one of our skilled team members or click below to schedule your consultation.