Should I be receiving a property tax refund before paying any taxes on a recently purchased property?

[johndoe123]

I purchased a home in September 2020. All taxes payable in 2020 were paid by the previous owners. I entered my property tax statement for taxes payable 2021 into TurboTax and indicated that I owned the property on January 2, 2021, but not on January 2, 2020. It is showing that I will receive a property tax refund, but I have not paid any property taxes yet, as my first payment is not due until May 2021.

[AmyC]

Correct, you are not eligible. You are not allowed to claim taxes for years other than 2020 on a 2020 tax return. Remove anything 2021 from the program. You can claim it on your 2021 tax form.

[johndoe123]

Thank you for the reply. That would make sense to me.

However, I am entering exactly what I am being prompted to. I am asked if I received a property tax statement for 2021, then the next screen is entering information from that statement, with columns for 2020 and 2021 (see pictures). Is it then advisable to indicate that I did not receive a property tax statement, to stop Turbotax from calculating a property tax refund?

[MaryM428]

You are not eligible for the 2020 property tax refund, because you did not pay the property taxes.  The 2021 property taxes will be entered on your 2021 tax return.

Property taxes are an itemized deduction.  If you take the standard deduction, property taxes will not affect the amount of your refund or the amount that you owe.