which year to deduct Property Taxes if receiving refund

Forum|Forum|4 years ago
February 28, 2022
3 replies
20 views

In Oct 2021, I paid $3,000 for supplemental property tax for the assessment year 2020 - 2021.

In Feb 2022, I received a check ($3,000) for the supplemental property taxes refund due to APPRAISAL CHANGED. Also, the county sent me a new property tax bill, the new bill is $2,800.

In my case, should I claim the property tax deduction when I file my 2021 tax? If so, $3,000 or $2,800?

or should I claim a $2,800 property tax deduction when I file my 2022 tax?

Not A Product Question

Mike9241

Level 15

if you itemize and deduct the $3000 in 2021 the $3000 refund in 2022 becomes taxable income not a reduction of itemized deductions(maybe because there's a limit on the itemized deduction for taxes of $10,000 which includes state income taxes or sales taxes, property taxes and certain other taxes. so if you are at the max for taxes the additional $3,000 will not benefit you so the refund would not be taxable). the $2800 apparently wasn't paid until 2022 so that's the year for the deduction.

Mike9241

DavidD66

Level 15

Since you received the refund in 2022, you should net it against any property tax you pay in 2022. In other words, it will reduce the amount of any property tax deduction you have for 2022 by $2,800.

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Miakle_SolunaAuthor

Level 2

If I choose not to include the $3,000 ($2,800? not sure) property tax deduction for 2021, does the $2,800 still net against the property tax I pay in 2022?