If you pay estimated taxes, paying your fourth quarter state and local tax before January 1, 2018 could be a smart move given the tax reform legislation that’s been proposed.
Paying your fourth quarter state and local tax estimates for 2017 before year-end could help preserve the deductibility of those payments on your federal income tax return.
If these estimates are based on 2016 income and you expect 2017 income to be greater, consider increasing your fourth quarter state and local payments too.
Please note: The timing of your fourth quarter estimate payments could impact your 2017 federal tax liability, but the timing of your fourth quarter federal tax estimate will not affect your liability.
Federal, state, and local fourth quarter estimate payments are due January 15, 2018.
Have questions about state and local taxes? Let’s talk!