Hello,
I closed on my new home on 12/28/2018 and therefore did not receive a 1098 because I did not start making mortgage payments until 2019.
I am using my closing statement to file my 2018 taxes right now using Turbo Tax. I prepaid about $1,200 in property taxes (initial escrow payment at closing) and $143 in prepaid interest. If I enter this information into Turbo Tax would I get a deduction? There was no change reflected in my refund when I did, and I wanted to make sure this was accurate.
Thanks for the help!
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The calculation is accurate and most likely you won't get a deduction. The property tax, mortgage interest, medical, charitable and other expenses must exceed standard deduction in order for you to see any tax impact on your tax return. And, since the Tax Reform has almost doubled the standard deduction amount, claiming only property taxes won't make a difference on your refund.
and technically, even though you prepaid taxes to fund the escrow, it's only deductible when paid to the taxing authority in any event, so not deductibl.
the 3 days of 'pre paid' interest would be deductible.
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