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May 15, 2021
Question

My property tax for 2020 was paid to the county in January 2021, however I paid monthly escrow payments for the taxes in each month during 2020. Can I still deduct it ?

  • May 15, 2021
  • 2 replies
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2 replies

Employee
May 15, 2021

You should be using the amount your lender put on your 1098.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Carl11_2
Employee
May 15, 2021

Property taxes are deductible in the tax year they are actually paid. It does not matter what year is paid *for*.

Money you put in an escrow account is never tax deductible, or even reported anywhere on a tax return. Money you put into escrow is your money, and it remains your money until the administrator of the escrow account makes a withdrawal from that escrow account to pay an expense which the account was established for.  Expenses paid from that escrow account are generally reported to you on a yearly escrow analysis statement you receive every year around the anniversary date of the loan.  But nowadays most lenders will include amounts paid from escrow on the 1098-Mortgage Interest Statement also. Usually in box 10 of the 1098.