New tax law takes effect on Jan. 1

Taxpayers are rushing to pay certain taxes early for deductions that will soon disappear.
2:39 | 12/28/17

Coming up in the next {{countdown}} {{countdownlbl}}

Coming up next:



Skip to this video now

Now Playing:


Related Extras
Related Videos
Video Transcript
Transcript for New tax law takes effect on Jan. 1
And that tax overhaul on the minds of many Americans. And the Americans rushing to pay certain bills in advance. Tonight, the irs with a new announcement. Abc'ser ye Ariel erielle reshef is in new York, explaining why people are trying to save big before the new tax plan kicks in. Reporter: Long lines tonight as taxpayers rush to make some crucial decisions. Come on over. Reporter: That new tax law taking effect January 1, and with it, a new financial reality for millions of Americans. From Illinois to Virginia, tax payers are rushing to pay certain taxes early, to make the most of deductions that will soon disappear. I'm very upset. I'm upset how it's going to effect the value of our home. Reporter: The new law limits deductions for state and local income taxes and property taxes, capping them at a combined $10,000. Accountants say some taxpayers could consider preparing next year's property taxes to get a larger deduction. In the last two days, today and yesterday, we've probably had over 1,000 folks. Reporter: Here in New York, 55-year-old Harold Francis, a state law enforcement officer, among those waiting. We've been itemizing for 15 or 20 years, so, not being able to do so is going to be extremely challenging. Reporter: Think it means thousands for you, or -- My ref estimate is about $3,000, yeah. Reporter: His son pitching in to help his parents. Means borrowing some of it and almost cleaning out our savings, emergency funds. Reporter: Counts, accountants say their offices are being flooded with questions. This could be the last chance they have to deduct real estate taxes. Reporter: So, should you prepay those property taxes? Experts say if you are itemizing for 2017, check with your personal accountant to see if it makes sense. For example, if you pay $20,000 in property taxes, depends on your tax bracket, you could be saving between $3,000 and $8,000 by paying early. Until people actually see their 2018 tax returns, they won't fully understand how it impacts them. Reporter: Erielle joins us live now. And today, the irs weighing in on the property tax prepayments, announcing they're being flooded with questions? Reporter: Tom, that's right. The irs confirms that people doing this can receive an additional deduction, but only in certain circumstances. You have to have received a bill for your property taxes. It won't work with an estimate. Bottom line, check with your accountant. Tom? Lrment, erielle, thank you. Let's turn now to a distu

This transcript has been automatically generated and may not be 100% accurate.

{"duration":"2:39","description":"Taxpayers are rushing to pay certain taxes early for deductions that will soon disappear. ","mediaType":"default","section":"ABCNews/WNT","id":"52016612","title":"New tax law takes effect on Jan. 1 ","url":"/WNT/video/tax-law-takes-effect-jan-52016612"}