Prepaid property taxes will be deductible in Illinois
SPRINGFIELD — The U.S. Treasury has ruled that Illinois homeowners who prepaid their 2018 property taxes last year will receive the full state and local tax deduction.
Republican Rep. Peter Roskam of Wheaton asked for the clarification following confusion caused by an IRS advisory issued in December, which suggested that homeowners who prepaid without having their properties formally assessed wouldn’t be able to deduct the payments.
The treasury department ruled that because Illinois property taxes are for assessments made the previous year, the IRS advisory doesn’t affect homeowners in the state.
Many rushed to make property tax prepayments at the end of last year when it was announced that the new tax bill would eliminate the unlimited property tax deduction on itemized returns and replace it with a $10,000 deduction cap for 2018.