Property tax credit from seller

[gchareja79]

I received property tax credit from seller while buying home. Turbo tax is just not letting me enter seller credit. It is trying to run everything through wizard like questions and not letting me enter seller credit as negative adjustment to lower property tax reflected on my 1098 received from lender.
Any suggestions?

[Mike9241 · Accepted solution]

the seller credit is an offset to the real estate taxes you paid, if any, during 2025. Deposits to escrow don't count. The credit offsets payments either directly to the tax agency or amounts withdrawn from your escrow account topau the taxes. if the credit exceeds the payment, the excess is carried forward to the next year to offset those taxes.   

Either reduce the taxes as shown as paid on the 1098 or don't enter the net through the 1098 but through the tax section of Schedule A. 

[gchareja79]

That's a great suggestion!

Turbo tax kept telling me that I should enter the full property tax amount paid as reported on Form 1098 in the mortgage interest and tax deduction section. and then separately, claim the seller credit as a negative amount or adjustment. But then it's own interface did not support that. Because of that advise from turbo tax, I was apprehensive of changing the amount shown on 1098.

After looking at your suggestion, I checked some other portals and looks like it's a good way to move forward. I am going to do that 🙂