Taxes all year long…

Technically, you pay taxes all year long. Whether through sales tax, meals tax, gas tax, you are always paying taxes. One large tax you do not want to forget about is property tax. If you are a homeowner, your property taxes may be a significant amount and something you do not want to forget to add to your budget.

In case you don’t have your tax bill handy, see the following due dates for towns in Chittenden County, VT below. A helpful reminder, save your tax bills so that you can deduct your property tax as an itemized deduction. If you can’t itemize, oftentimes paying a bill early can help you to itemize your deductions. Even if you can itemize each year, but the benefit is minimal, paying your property tax bill early every other may allow you to reap greater benefits. The following is an illustrative example:

Ms. A and Mr. A own a house and owe $9,000 in property taxes every year. They live in Williston where they make three payments a year. The A’s can typically itemize $12,500 in deductions a year which is fairly close to the $12,200 standard deduction. They are at a 25% tax rate which means this deduction saves them a total of $75 a year over the standard deduction. However, if the A’s make their February 15, 2014 payment in December 2013 they can deduct that payment for the 2013 year. This brings their itemized savings up $750 in 2013. As you would expect, The A’s lose their standard deduction for 2014 and take a standard deduction of $12,200 (based on 2013 figure). They do not receive additional savings in 2014, but only lost out on the $75. In all, the A’s save $675 every two years by using this tax strategy and paying their February bill two months early every other year.

Chittenden County, VT Property Tax Due Dates:

Burlington: August 12, November 12, March 12, and June 12

Colchester: August 15, November 15, and March 15

Essex Junction: September 16 and March 15

Hinesburg: November 15

Milton: August 1, November 1, February 1 and May 1

Richmond: August 15, November 15, February 15 and May 15

South Burlington: August 15, November 15 and March 15

Underhill: August 15, November 15, February 15 and May 15

Williston: August 15, November 15, and February 15

Davis & Hodgdon Associates has been assisting businesses and individuals in the Burlington Vermont Metro area for more than 20 years. If you have any questions or concerns please feel free to call 802.878.1963 or email [email protected].

Alyssa McBride, Associate Accountant

Davis & Hodgdon Associates CPAs