Some Reston Homeowners Will Get Hammered By Tax Bill

The Republican tax bill that will soon become law is going to punish people who pay a lot in state and local taxes, but there's a way for some Reston homeowners to get out of some of the pain -- at least this year.

The bill, passed by Congress this week although it has yet to be signed by President Trump, will cap the amount you can deduct in state and local taxes from your federal returns at $10,000.

Currently, you're allowed to make unlimited deductions of state and local taxes, which is why some tax experts are advising pre-paying your property taxes for 2018 if you're a homeowner before the tax bill is signed into law, according to a WAMU report.

“We have gotten a spike in calls on whether we allow [pre-payments],” Scott Sizemore, Fairfax County’s director of revenue collection, told WAMU. “If anyone wants to pre-pay their taxes, they can. We’re not going to turn the money away.”

Why can you only pre-pay property taxes? It's because of a provision in the bill which states that you cannot pay any 2018 state or local income tax payment due in 2017, but this only applies to income taxes, which opens a loophole for those who pay property taxes.

And with around 61 percent of Reston residents listed as homeowners according to the U.S. Census Bureau, many locals should consult with a tax expert on whether they should prepay.

In Reston, your home would have to be worth $1 million or more for your property taxes to be above $10,000.

To learn more about how to pre-pay, check out WAMU's detailed breakdown.

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