Unless you have been hiding under a rock, you are aware that both the House and Senate have passed legislation to update the tax code. Both plans are calling for a repeal of the deduction for state and local income tax expense. Although we are not yet sure of the final outcome of the tax legislation, we are strongly urging all clients who pay state income taxes to be prepared to pay any state tax due before December 31, 2017.
For those individuals who generally pay Alternative Minimum Tax (AMT) a prepayment may not benefit you. However, taxpayer’s who are scheduled to make January 15th, 2018 estimates and those who suspect that they will owe state tax on April 15th, are likely to benefit by making tax payments before December 31st.
If you have questions about how the state income tax deduction impacts you, please give us a call at 207-873-1603 or swing by one of our two locations: 259 Front Street, Bath or 46 First Park Drive Oakland.