I refinanced my mortgage in the fall of 2020. Just found out that my new lender just paid my 2020 taxes on March 16th, 2021. Can I claim the taxes in my 2020 return?

Anonymous · ‎March 17, 2021

Because my new lender did not file my 2020 property taxes in 2020, do I have to wait to claim them in 2021? Or can I file an amended 1098 for 2020?

JotikaT2 · ‎March 17, 2021

No. Tax returns are reported on a cash basis generally. Therefore, your property taxes can only be deducted in the year they are actually paid out.

If your mortgage lender issues you a correct 1098 for 2020, then yes, you would be able to amend your 2020 income tax return. However, if they were actually paid out in 2021, they would be considered a tax deduction in 2021.

What property taxes can I deduct

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JotikaT2 · ‎March 17, 2021

No. Tax returns are reported on a cash basis generally. Therefore, your property taxes can only be deducted in the year they are actually paid out.

If your mortgage lender issues you a correct 1098 for 2020, then yes, you would be able to amend your 2020 income tax return. However, if they were actually paid out in 2021, they would be considered a tax deduction in 2021.

What property taxes can I deduct

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Anonymous · ‎March 17, 2021

Thank you so much for the quick answer! Wow. That really stinks. This was their error, and now I'm literally paying the price.

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I refinanced my mortgage in the fall of 2020. Just found out that my new lender just paid my 2020 taxes on March 16th, 2021. Can I claim the taxes in my 2020 return?