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Reader says lots of people were lined up in town hall paying a years worth of taxes without ever consulting their accountants or knowing how it will impact them

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…lots of people were lined up in town hall paying a years worth of taxes without ever consulting their accountants or knowing how it will impact (negatively or positively) their taxes for 2017 (or 2018).
There were some people who knew exactly what they wanted to achieve and were strategically pre-paying, but there were lots of FOMO lemmings out there throwing money at the tax collector.
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Don’t believe me, go to the tax collector on the 3rd floor of town hall tomorrow and Friday and survey the people… most do not know exactly how much they should pre-pay to achieve a specific desired effect… most are just panic pre-paying on the basis of what they read online or what a friend’s friend told them they should be doing.

A couple of tips from Assemblywomen Holly Schepisi in evaluating 2018 tax planning:
1. Call your accountant and discuss your individual circumstance prior to pre-paying anything.
2. If you are subject to the Alternative Minimum Tax you will receive NO benefit by pre paying your taxes.
3. Do not prepay an entire year
4. Notwithstanding some of the hysteria and doomsday reports for NJ residents, a liberal think tank put forth a report yesterday that less than 11 percent of those in NJ will see any increase in overall taxes as a result of the new federal tax plan and most of these people fall into high or very high income ranges. 5. Today, Governor Christie issued the following executive order which mandates municipalities accept
Prepayment Of 2018 Property

4 thoughts on “Reader says lots of people were lined up in town hall paying a years worth of taxes without ever consulting their accountants or knowing how it will impact them

  1. Lemmings everywhere.
    The Republic is doomed.

  2. Wrong…we consulted our mortgage company and our accountant….

  3. What is “wrong” 12:49?
    .
    1) There ARE lemmings everywhere.
    .
    2) The OP stated that “There were some people who knew exactly what they wanted to achieve and were strategically pre-paying…”. If you are one of them, how is that “wrong”?
    .

  4. The last sentence of the post, the most important one, is cut off. I believe the gist is that prepayment can count toward 2017 taxes only for quarters that have been assessed–i.e., although the village is accepting prepayment of Q3-Q4 through estimation (doubling Q1 + Q2), those will not be deductible for 2017. Wisest move seems to be to prepay for no more than Q1-Q2, but each person’s situation is different. I feel sorry for the accountants getting a zillion phone calls when they would like a quiet week before the furor starts. Well, it started. (I was lucky to catch mine before he left for Florida.)

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