Can I attach (I e-file) documentation that I prepaid 2018 property taxes in 2017? If bank 1098 shows only escrow payments, itemized deduction won't match: audit risk?

[Thomas4]

My mortgage has an escrow account for paying property taxes. I expect form 1098 for tax year 2017 will report only property taxes paid through that escrow account.

However, due to the changes in tax law, which appear to allow prepayment of 2018 property taxes that were already assessed, I went ahead and prepaid two quarters worth of property taxes. I have a stamped receipt from the town tax office.

I plan to itemize deductions for tax year 2017. But my property taxes paid will include both the escrow payments and my prepayment, and that's what I will report for deduction. However, the 1098 amount will be different.

Is that likely to trigger an audit? If so, is there a way to attach the stamped receipt to document that I prepaid, so that the IRS can see my numbers are correct?

[DoninGA]

A statement is not required, nor can you attach any type of document to an e-filed tax return.  Just report the property taxes you paid outside of the escrow account.

To enter, edit or delete Property Taxes -

• Click on Federal Taxes
• Click on Deductions and Credits
• Click on I'll choose what I work on (if shown)
• Under Your Home

If paid through your lender

• On Mortgage Interest, Refinancing, and Insurance, click on the start or update button

If paid directly

• On Property Taxes, click on the start or update button

Or enter property tax in the Search/Find box located in the upper right of the program screen.  Click on Jump to property tax

[liletrm]

Hi, I have the same question and can't find an answer anywhere.  If a statement (or proof of  2018 tax prepayment) is not required, will IRS verify directly with town for assessed 2018 taxes and its payment? I can't imagine they will not check it and just wondering if better to just mail it in with copy of 2018 assessed tax and proof of payment, than efile and wait for IRS to ask for documentation. Not sure what to do and would like to know what people are opting to do. Thanks.