My mortgage company paid my 2020 property taxes to the wrong tax parcel ID. They gave me a 1098 for that transaction. In 2021, they refunded me and I’m paying the bill. Should I file it as 2020 tax item or 2021? The IRS already has the 1098 from 2020.
They paid the wrong county tax parcel (somebody elses account) in 2020 and sent a 1098. Now I’m paying off the mistake in 2021. Not sure which year I should file it under because the 1098 has already been made for 2020.
Since your property tax was not paid in 2020, you will not have a property tax deduction on your 2020 return. Do not enter the property tax amount that was reported on the Form 1098 from your mortgage company since it was not paid for your property.
Instead on your 2021 tax return you will be able to claim the amount that you are paying in 2021 to cover the 2020 taxes as well as any 2021 taxes that are paid during the year.
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