Oakton Residents May Prepay Property Taxes

OAKTON, VA—Fairfax County has been fielding requests from residents wanting to 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, Oakton 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.

However, a new IRS news release warns taxpayers that prepayments based on real estate taxes not assessed in 2017 may not be eligible for deduction. The city has recommended consulting a tax professional before deciding to prepay.

Fairfax County is accepting prepayments, offering extended hours this week at the Department of Tax Administration. Because tax rates for 2018 have not been finalized, residents should estimate their tax bill based on 2017 taxes and pay or receive the difference when it is set in April 2018.

Residents can pay Fairfax County tax bills:

• In person at 12000 Government Center Parkway, Suite 223 Fairfax, VA 22035. Extended hours this week are Dec. 27-29, 8 a.m.-6:30 p.m.
• By mailing a check to Department of Tax Administration 12000 Government Center Pkwy., Suite 223 Fairfax, VA 22035 (ATTN: Cheniqua Ford) and marking on the check “prepayment 2018.”
• By Automated Clearing House or wire transfer

Editor's note: The article has been updated to reflect the IRS's advisory on prepayments.

Image via Shutterstock