If your property taxes are not escrowed, pay the bill for current taxes prior to year-end in order to accelerate the deduction.

Specific Details

The taxpayer reduced their taxable income by $5,000 by paying their property tax bill for current taxes prior to year-end. Since the taxpayers income was taxed at the 30% tax bracket, the income reduction may decrease their income taxes by $1,500 ($5,000 x 30%).

Potential Savings

If you are in a combined (federal, self-employment, and state) tax bracket of 30%, you could reduce your taxes up to $300 for every $1,000 of income reduction by paying your property tax bill for current taxes prior to year-end.