You don't deduct the property taxes paid to your escrow account since the money is still technically yours.
- You may deduct the property taxes when your mortgage company (on your behalf) pays your property taxes to the county or other taxing body.
- Your mortgage company should send you the information on form 1098 Mortgage Interest or the property taxes paid will be on your tax bill.
If it's for rental property you own, your property/real estate taxes are entered along with your other rental expenses.
Otherwise, you'll enter them in the Deductions & Credits section:
- Open (continue) your tax return.
(To do this, sign in to TurboTax and click the orange Take me to my return button.)
- In the search box, search for the exact phrase real estate taxes and then click the "Jump to" link in the search results.
- Answer Yes to the question Did you pay property or real estate taxes in 2016?
- Enter your property/real estate taxes on the next screen.
When your property/real estate taxes are included on your 1098, you’ll enter them as part of your Mortgage Interest. But, if they aren’t listed on your 1098, you’ll enter them separately as property/real estate taxes.
Tip: If you own additional properties for personal use (for example, a cabin or timeshare), make sure to include the property/real estate payments for those as well.
