Tax Law Brings New Incentive for Property Tax Appeals
About 47,000 Cook County homeowners rushed to pay $312 million in property taxes to take advantage of the unlimited tax deduction for state and local taxes under the previous tax law, The Chicago Tribune reported. The new tax law now caps deductions for state and local taxes — including property taxes — at $10,000.
Not sure what this means for your property tax bill or appealing it? Below is everything you need to know.
What the 2018 Tax Law Means for Chicago Homeowners
If you didn’t prepay your tax bill by December 29, and your state and local taxes are more than $10,000 you will not be able to deduct the portion over $10,000 from your 2018 federal tax bill.
If you prepaid the first installment of your 2018 property tax bill to salvage the full federal income tax deduction, you still have to pay the amount of your property tax bill that will show up in the second installment that goes out in July.
Either way, if you live in one of the 11 townships in Group 7 or 8 you still have a chance to reduce the tax bill you will receive next July by appealing your assessment to the Cook County Board of Review.
Property owners in Group 7, which includes Northfield, Thornton, Hyde Park, Lake, North Chicago and South Chicago townships, have until January 16 to appeal. Property owners in Group 8, which includes Bloom, Hanover, Niles, Rich and Schaumburg townships, have until January 31.
It’s not just the federal tax overhaul that taxpayers have to keep in mind. Chicago homeowners are now in their third year of $963 million in property tax increases over four years. Appealing your assessment is the only way to reduce the effect of coming increases.
Contact Us to Find Out If You Are Paying Too Much
Think you’re overpaying in property taxes? Contact us for a free, no-obligation review of your property tax situation.
Using our data-driven system and a proprietary algorithm, we can delve deeply into the comparable details and spot opportunities for significant savings. That means more money in your pocket year over year. In fact, our clients win a reduction in their assessed value 90% of the time. We only recommend an appeal if there is a strong case for doing so.
Contact us prior to the deadline for your free property tax analysis. If your property tax bill is over $10,000, an appeal can help you with your federal income tax return as well.