Congressman Peter Roskam delivered yet another win last week, welcoming news from the U.S. Treasury Department that Illinois residents who prepaid their 2018 property taxes would be allowed to deduct the payment on their 2017 taxes, contrary to an IRS opinion released in December.
Following the passage of federal tax reform late last year, tens of thousands of Illinoisans lined up to pay their 2018 property taxes early in hopes of deducting the payment on their 2017 taxes. Not long afterward, the IRS signaled it would not allow such a deduction, since the tax was not imposed during the 2017 tax year.
In the wake of the IRS’s warning, Congressman Roskam stepped forward and made the case to Treasury Secretary Steve Mnuchin that Illinois residents were in a unique position, since they have always paid their property taxes one year late going back to the Great Depression.
On March 29, the Treasury Department affirmed Congressman Roskam’s argument, saying Illinois taxpayers would not be subject to the IRS’s opinion. The new advisory could amount to thousands of dollars in savings for the families and residents of IL-6.