Prepay Fairfax City Property Taxes Early To Maximize Deductions

FAIRFAX, VA — Worried about what your 2018 property tax bill might look like in light of the new tax law? If you live in Fairfax City, there's a way to potentially save some money. Residents can prepay 2018 property tax bills so they can still receive State and Local Tax (SALT) deductions before they are significantly reduced next year.

Homeowners have been rushing to pay property taxes early before the new federal tax takes effect on Jan. 1, 2018. While 2018 tax rates have not been finalized, property owners can estimate their tax liability. Property owners waiting until the 2018 due dates likely not be able to deduct the full amount of property taxes on their 2018 returns under the new federal tax code, which caps state and local deductions on federal tax returns at $10,000.

From Fairfax City city clerk Melanie R. Crowder: "Taxpayers seeking to prepay 2018 taxes may estimate their tax bill based upon their 2017 taxes, and any difference will be billed or refunded once the rates are adopted by the City Council (Real Estate in the April/May timeframe and Personal Property in the May/June timeframe). If your taxes are currently being escrowed by your mortgage company, you are responsible for working with them on any future adjustments based on your prepayment."

On Wednesday, the IRS sought to provide clarification: "The IRS has received a number of questions from the tax community concerning the deductibility of prepaid real property taxes. In general, whether a taxpayer is allowed a deduction for the prepayment of state or local real property taxes in 2017 depends on whether the taxpayer makes the payment in 2017 and the real property taxes are assessed prior to 2018. A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017. State or local law determines whether and when a property tax is assessed, which is generally when the taxpayer becomes liable for the property tax imposed."

PAYMENT OPTIONS

Payment in person:
Treasurer’s Office, 10455 Armstrong Street, Suite 234

This week only we have extended the Treasurer’s office hours for Wednesday, Thursday and Friday to 8:30am – 6:30pm.

Dropbox:
There are two black drop-boxes located outside of City Hall. One is located at the front of the building along Armstrong Street in the circle and one is located on the University Drive side of the building.

City Hall, 10455 Armstrong Street

By FedEx/UPS:
Send check to the address listed below to be received no later than Friday, December 29. Please note on the check the payment is for “prepayment 2018”
City of Fairfax
Treasurer’s Office
10455 Armstrong Street
Room 234
Fairfax, VA 22035

By Phone:
You may contact our 3rd party vendor PayGov to make an over the phone credit card payment.
PayGov
1-866-480-8552
You will need to provide:
· account number
· amount
· 2018 prepayment

Image by stevepb at Pixabay