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New Member
posted May 31, 2019 6:58:23 PM

Property tax on new home

Hi There - I am unsure how to calculate my property tax amount. I purchased a new home on 6/6/16 where I paid $1,281.97 into my escrow for taxes at the time of closing. From June until December I have paid an additional $857.45 of property taxes into my escrow account, which would total  $2,139.42 paid into my escrow for property taxes.

I received my school tax bill in September, which i paid $1477.76.

My question is, do I deduct $1477.76, or $2139.42.

Thanks!

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1 Best answer
Level 15
May 31, 2019 6:58:25 PM

You deduct the amount you paid directly to the taxing authority and the amount your financial institution paid to the taxing authority. You don't deduct the amount paid into your escrow account because some of that may be in reserve for next year's taxes. If you are escrowing your taxes, why did you pay a school tax bill directly?

3 Replies
Level 15
May 31, 2019 6:58:25 PM

You deduct the amount you paid directly to the taxing authority and the amount your financial institution paid to the taxing authority. You don't deduct the amount paid into your escrow account because some of that may be in reserve for next year's taxes. If you are escrowing your taxes, why did you pay a school tax bill directly?

New Member
May 31, 2019 6:58:26 PM

Thank you for your quick response. Sorry, I should have been more specific, what I meant was "I received my school tax bill in September, which i paid $1477.76 with my escrow account funds."

Level 15
May 31, 2019 6:58:27 PM

Your financial institution should include the amount of property taxes they paid on your behalf on the form 1098. That is the amount you would deduct. Sometimes it's on the back of the form.