[HEY– TUESDAY IS VOTE DAY IN THE US! MAKE SURE YOU VOTE!!!! LOCAL ELECTIONS ARE IMPORTANT! Also:
Ditto all the racist xenophobic mailers that have been going out. We cannot let hate win just because we weren’t paying attention to state and local elections!
… END SOAPBOX. VOTE. ]
This is our first tax year without Wells Fargo paying our mortgage taxes out of escrow.
Our property taxes are 8K/year. We have a choice of paying half before November and half in June, or paying in full in November. That means it is possible for us to pay half in one year and 1.5 times the next, followed by half the next year and so on. Alternatively we could pay 1x each year.
Given our regular charitable giving and other taxes, we’re right up against the standard deduction if we pay 1x each year. So it makes more sense for us to try to bunch it into every other year.
So, this year I wrote out a check for half the property taxes and we’ll be taking the standard deduction. We’ll put off our holiday charitable giving to January rather than December. Next year we’ll itemize.
We’ll see how this ends up working out this year, and next year too. Hopefully we didn’t make a mistake (especially given upcoming changes to the tax code)! If a tax plan that limits the property tax deduction to 10K really does pass, then I will send out the second property tax check before December 31st and our annual charitable giving then too. I put a note in our google calendar to double check on things sometime in December.
Do you itemize your taxes? Do you play any fun games with timing for tax purposes?