MILWAUKEE -- The new federal tax law that takes effect in 2018 changes the way local taxes are deducted. So, when a homeowner pays his or her property taxes could have financial consequences.
Milwaukee Mayor Tom Barrett outlined on Wednesday, December 27th, some of the changes that people should be on the lookout for as part of the Republican tax overhaul in Washington.
Starting in 2018, people will no longer be able to deduct state and local taxes above $10,000 from their federal income taxes. This will be most relevant to people who itemize their taxes. But the mayor has a message for taxpayers before the new year:
"What I would recommend people to do is to talk to their tax advisor and seriously consider making their payments for 2017, before the end of this year. They have until January 31st, but if they make the payment after January 1st, their ability to deduct that payment will be severely hampered," said Mayor Barrett.
The mayor says this will not affect the majority of people in Milwaukee, but wants people to understand the law.
Meanwhile, Governor Walker's administration says the typical family of four in Wisconsin -- with a household income of $94,000 -- will see a cut of $2,500 as part of the tax changes.