President Trump’s goal is to sign a new tax bill into law by Christmas 2017. It appears many changes to our current tax law are inevitable.
Both the Senate and the House of Representatives plans will remove the state and local income tax deduction from federal itemized deductions. In fact, many Americans will no longer itemize at all as the standard deduction appears to be nearly doubling.
As 2017 draws to a close, you may still have an opportunity to take advantage of deducting any state and local income taxes you pay as a federal itemized deduction. The key is to do it by December 31, 2017.
If you think you will owe Missouri taxes upon filing your individual income tax return, its best to get it paid in prior to the end of the year to take advantage of the last year it will reduce your federal tax bill. Unfortunately, this deduction is not beneficial to taxpayers who are subject to alternative minimum tax.
Please consult your tax advisor for specific issues regarding your personal tax situation. If you have any additional questions, please contact Jaclyn Ellis, CPA at 314.576.1350.