By Makenzie O’Keefe
DENVER (CBS4)– Some people across Colorado are lining up to pay their 2018 property taxes early, hoping to save money.
The federal tax overhaul signed by Republican President Donald Trump last week puts a new $10,000 limit on deductions for state and local taxes.
Hundreds of people lined up outside the courthouse in Boulder and other court houses along the Front Range on Thursday morning, ready to pay their taxes early.
The IRS says Wednesday that some homeowners who pay real estate taxes early will be able to claim the deduction, but only if the taxes were assessed, billed and paid in 2017.
“A lot of the CPA’s are saying if you are going to itemize next year and you’re going to have a whole lot of itemized deductions that go way over and not be counted, you might as well try for this year and see what happens,” explained Jill Schlessinger, CBS Financial Expert. “Because it won’t work next year.”
Dan Gould was waiting in a line of nearly 100 people on Thursday morning in Boulder to prepay his property taxes.
“I have to pay them anyways so I might as well pay them early if there is some kind of additional benefit,” Gould said.
“By filing early we will be able to save several thousand dollars on our tax bill for next year,” said Kyle Ewing. “Being able to pay early allows us to save.”
Financial experts say while it’s a bit confusing, its best to contact an accountant if you have any questions.
The IRS says people can’t guess at what next year’s assessment might be, pay that amount ahead of time and still get the deduction.
The IRS hasn’t yet said how it would handle prepayments.