Carl
Level 15

Deductions & credits

Further clarification:
Every year, usually the anniversary month of the mortgage, you will receive an annual escrow account statement. That statement shows the monthly contributions to the escrow account each month. It will also show the estimated disbursements from that account, along with the actual disbursements.

Those actual disbursements are what you can claim, if they are qualified. For example, the actual disbursement for property taxes is deductible on your 2019 tax return, if (and only if) the disbursement occurred in 2019.

The actual disbursement for the property insurance is not deductible at all if it was used to pay the property insurance on your primary residence, 2nd home, or any other non-business use property. It is deductible if it was used to pay insurance on your rental or other business use property as a qualified rental or business expense. But again, for your 2019 taxes it's only deductible if the disbursement actually occured in 2019.

 

If deductible disbursements occured in 2020, then you need to file that statement with y our 2020 financial information, as you will need it for claiming the deduction on your 2020 tax return that you will complete and file next year.

 

If you do not have your annual escrow account statement, then chances are pretty good that you can log onto your mortgage accoutn on line with whatever lender or escrow management company manages your escrow account, and pull a copy of the annual statement from there.