FORT WORTH (CBSDFW.COM/KRLD-AM) – Property owners in Tarrant County who unnecessarily prepaid their 2018 property taxes can get that money refunded.
The IRS ruled only property taxes that have already been assessed can be written off federal taxes.
Therefore, since Tarrant County will not send tax assessments until October, those prepayments cannot be written off 2017 federal taxes.
Tarrant County is offering to refund those prepayments.
Tax Assessor-Collector Ron Wright emailed CBS11, “A little over 700 accounts were prepaid in December. I have offered to refund to those who want it… They made the prepayment in good faith, I accepted it in good faith, and I will refund it in good faith. The IRS could have and should have allowed the additional deduction.”
Refund requests must be made in writing, and those that exceed $5,000 must be approved by the Commissioners Court.
Starting this year, state and local tax write-offs are capped at $10,000.
The IRS sent out an advisory in late December saying, “A prepayment of anticipated real property taxes that have not been assessed prior to 2018 are not deductible in 2017.”
In Texas, county tax collectors won’t send out property tax bills for 2018 until October 1.
So that means, even if people here in North Texas prepaid their 2018 property taxes, they would not be able to deduct them from this year’s federal income taxes.