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What EXACTLY is "escrow" and what does it cover?

Most likely, that is not directly deductible, but whatever the "escrow" pays for is deductible.  For example, if you pay $300 per month to "escrow" that eventually pays $3600 for vehicle insurance, you DON'T deduct the $300 per month, you only deduct the actual $3600 vehicle insurance whenever it is paid from the escrow.