“Washingtonians Can Pre-Pay Property Taxes in 2017”

Photo by PoPville flickr user Erin

“Dear PoPville,

Even if DC lets you prepay your property taxes, would that pass muster under the GOP bill in order to claim your deduction for 2018 taxes paid in 2017? Looking to the PoPville community of accountants, realtors, and lawyers to weigh in.”

From the Mayor’s Office:

“After Congress passed tax reform legislation, Mayor Muriel Bowser, Congresswoman Eleanor Holmes Norton, and Chief Financial Officer Jeff DeWitt announced that District property owners can pre-pay their property taxes in preparation for the upcoming tax year. The tax reform legislation limits the amount of state and local income and real property taxes that individuals may deduct from their federal income tax, beginning in calendar year 2018. Under the new law, the amount that may be deducted is limited to $10,000 of the combined local income or sales taxes and real property taxes. (This applies only to taxpayers who itemize their income tax filings; taxpayers who do not itemize will get no tax benefit by paying early.)

To get the full benefit of that deduction in 2017, District property owners can pay their 2018 real property taxes in 2017. These payments must be received and recorded in calendar year 2017. The payments made will be credited to the calendar year 2018 real property tax obligation.

“Because of how hastily this tax reform legislation was created and passed, even its authors cannot fully explain all of the many ways it will hurt millions of hardworking Americans. One thing we do know, however, is that by limiting income and property tax deductions to $10,000, it will indeed raise taxes,” said Mayor Bowser. “Going forward, we plan to use every tool in our toolbox to protect Washingtonians from the negative impacts of this devastating legislation. With less than two weeks left in 2017, we will spread the word that one way Washingtonians can get the highest deduction possible is to pre-pay property taxes before the year ends.”

“Despite our efforts in the House and Senate, Republicans rammed through their corporate tax cut bill, without any hearings,” said Congresswoman Norton. “D.C. residents, who already pay the highest federal taxes per capita in the nation, without representation, should consult their tax advisor because prepaying their 2018 property taxes could help avoid being double taxed, at least for next year. If so, we count this as our first step against this tax bill. The next step will be holding Republicans accountable for their Christmas gift to corporations at the expense of hard-working Americans in the District and across the nation.”

The property tax payment can be made two ways:

  • The District Office of Tax and Revenue (OTR) website (www.taxpayerservicecenter.com) provides the opportunity to pay by electronic check (e-check). To make a payment, follow the “Prepay your 2018 Real Property Tax here” link at the top of the website. The payment MUST be made before midnight December 31, 2017. To make a payment, the following information will need to be provided: the property address (or lot and square numbers), the bank routing number, and the bank account number.
  • Wells Fargo will accept payment by check or credit card at any District branch office. Payment MUST be received by close of business on Saturday, December 30, and property owners must bring a 2017 real property tax invoice to the bank so that the bank can process the payment. Note: Some Wells Fargo branches are not open on Saturdays.

Residents should NOT mail payments as they may not be recorded in 2017.

Before making an advance payment, residents should consult a tax advisor. For more information on how to make an electronic payment, contact the District Office of Tax and Revenue.

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