Deductions & credits

You deduct the actual amount paid to the taxing authority during the year.  Why is your mortgage company only paying half your property taxes?  Are you paying the other half directly?  That's deductible either way, whether directly paid or paid by escrow.

 

However, the money you pay into the escrow account is not deductible.  That is still technically your money.  It only counts as paid property taxes when the city or county gets paid.