Get your taxes done using TurboTax
You will deduct the local taxes you paid during the year. The important thing is when you paid them, not what period they belong to. However, if you get a refund of local taxes in the current year from the prior year tax return, you will need to subtract that from the taxes paid in the current year to arrive at the local tax deduction.
It states this in the instructions to Schedule OR-A:
