Montgomery Co. votes to allow residents to prepay property taxes

While the new tax reform law might put a little more money in your paycheck, it could catch you when it comes to paying local taxes.

MONTGOMERY COUNTY, MD (WUSA9) - Montgomery County residents can prepay their property taxes before the GOP tax plan takes effect, the county council decided Tuesday in a special session.

Under current tax code, property tax deductions are unlimited, but under the new Republican plan starting Jan. 1, a cap is placed at $10,000. 

In Virginia and D.C., rules are already in place to allow you to prepay your property tax bill.
Montgomery County Council voted to follow suit Tuesday morning.

RELATEDHow to prepay property taxes before new law takes affect

If you live in a jurisdiction that allows you to prepay your property tax bill, you'll have to call your mortgage company and your local treasurer's office. 

Montgomery County offered this advice and warning to anyone interested in prepaying:

"It will be up to the Internal Revenue Service to determine whether prepayment of 2018 County real property taxes may be deducted for Federal, State, or local income tax purposes. The County advises taxpayers to consult their own tax advisor about deducting a prepayment of the taxpayer’s 2018 County real property taxes on their federal income tax return.

"Montgomery County makes no representations about how or whether the prepayment of 2018 County real property taxes affects escrowed taxes. Escrowed taxes are a matter for the taxpayer and the taxpayers escrow agency to resolve."

For more information or about prepaying 2018 property taxes in Montgomery County, click here.

© 2018 WUSA-TV


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