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rpelleg81
New Member

My 1098 indicates that I paid $539.52 in property taxes for 2016. Yet, I pay $572 per month in property taxes directly to Escrow. Why is the total amount reported in 2016 less than what I pay per month?

 
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PaulaM
Employee Tax Expert

My 1098 indicates that I paid $539.52 in property taxes for 2016. Yet, I pay $572 per month in property taxes directly to Escrow. Why is the total amount reported in 2016 less than what I pay per month?

Lenders don't always record the property taxes on the Form 1098. Nevertheless, you can take a property tax deduction for the exact amount of taxes that were paid to the county taxing authority from your escrow account.

This is not the amount that you pay into your escrow. Escrow accounts collect monies for taxes, insurance, and pmi. Look to your Jan 2017 mortgage statement for the amount of taxes paid, or your property tax bill. You could also contact your lender directly to clarify the amount they paid on your behalf.

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3 Replies
PaulaM
Employee Tax Expert

My 1098 indicates that I paid $539.52 in property taxes for 2016. Yet, I pay $572 per month in property taxes directly to Escrow. Why is the total amount reported in 2016 less than what I pay per month?

Lenders don't always record the property taxes on the Form 1098. Nevertheless, you can take a property tax deduction for the exact amount of taxes that were paid to the county taxing authority from your escrow account.

This is not the amount that you pay into your escrow. Escrow accounts collect monies for taxes, insurance, and pmi. Look to your Jan 2017 mortgage statement for the amount of taxes paid, or your property tax bill. You could also contact your lender directly to clarify the amount they paid on your behalf.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"
tbartman
Returning Member

My 1098 indicates that I paid $539.52 in property taxes for 2016. Yet, I pay $572 per month in property taxes directly to Escrow. Why is the total amount reported in 2016 less than what I pay per month?

I have a similar question but can't figure out how to create a new discussion ...

I paid into escrow in 2020 for taxes. However, because my tax bill jumped a lot, what the mortgage company paid to my county was much more! Of course, I now have a deficit that will be made up gradually this year (2021). When I go to deduct my 2020 property taxes (soon) will I be putting down the amount I actually put into the escrow account in 2020, or the amount that THEY paid to the county in 2020? Obviously this will affect next year's tax submission too, because this year I'm giving them at the new tax rate plus a whole lot of catch-up.

DianeW777
Employee Tax Expert

My 1098 indicates that I paid $539.52 in property taxes for 2016. Yet, I pay $572 per month in property taxes directly to Escrow. Why is the total amount reported in 2016 less than what I pay per month?

You will use the amount shown on the annual statement from the mortgage company.  This will be the amount actually paid to the county or city for your property through the escrow on your behalf.  It has the same effect as a loan, which is what it is.  You are liable for the debt on the date of payment regardless of when you repay the amount to the mortgage company.

 

The tax law works the same as if you had paid it with a credit card.  The deduction becomes available on the date paid because you become liable for that debt on the same day.

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