@QueenFlappy wrote:
We just have the 1 county tax (no separate school tax) that's paid twice a year. The 2nd installment for 2025 was pro-rated in escrow so that I paid for the time corresponding to my ownership (the seller paid the full amount to the county and then was reimbursed for my portion via escrow). And then the 1st 2026 installment should have been fully paid by me next year, but I needed to add in extra closing costs (or lose part of the seller concessions) so I paid it via escrow, but I'm 100% certain that amount solely corresponds to the time when I'll own the house. I'm pretty clear on what's my amount and what's theirs, I just didn't know if the seller concession affected who could claim on their taxes.
Your deduction is not what you paid in escrow, because money in escrow still technically belongs to you until it is paid to the county. If your tax year is Jan 1-Dec 31, then your deduction for 2025 is a percentage of the total tax based on the number of days you owned the home. For example, if you closed on Sept 25, 2025 (with 96 days remaining) your deduction would be 96/365=26.3% of the tax bill. Regardless of how much you paid into escrow.
Then, your 2026 tax that will be subtracted from escrow in February 2026 will be deductible on your 2026 return, even though you have already paid into escrow.
