Long Islanders brace for impact of GOP tax overhaul

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Many Long Islanders are trying to figure out how will they fare under the Republican tax overhaul signed today by President Donald Trump.

Jaime and Effe Poulos, of East Northport, let News 12 sit in as they met with Melville-based certified public accountant Mark Balog to analyze the difference in their projected tax bill under the previous law and under the Republican tax overhaul.

At first it wasn’t looking good for the couple. The $10,000 cap on state and local tax deductions set them back under the new tax law, as their property taxes alone are $12,000. They were looking at a tax increase of $2,591. But then Balog adjusted the numbers to include a $2,000 per child tax credit for households earning less than $400,000.

Jaime and Effe have two kids. As it turns out, the children made the difference between a year in the red and some real tax savings.

Balog says by and large, the big winners on Long Island figure to be young married couples who don't yet own a home, and families with children under the age of 17, who benefit from the child tax credit. The losers, however, appear to be Long Islanders who pay exceedingly high property taxes and people without kids or with children over the age of 17. Those who get divorced could suffer as well, as alimony payments are no longer deductible.

With so many variables at play, many Long Islanders say they aren’t just worried about their tax bill. They're also concerned about how this will impact their most prized possession: their home. News 12 talked to one such homeowner, West Islip’s Marilyn Stern.

“I was hoping to sell and put a little money away and buy something smaller,” says Stern.

Stern says she may have to change her plans now because property taxes on her West Islip home are $18,000 a year. That’s a tough sell for potential buyers under the new tax law.

“I talked to my realtor yesterday and asked him if the new tax bill was going to affect the price of the house, and he said yes it will,” she says.

Not all of the provisions in the new tax law take effect right away. Americans will see most of the changes when they file their 2018 taxes by April of 2019.

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