I purchased house in April. Seller had already paid Property Tax upto July 2017. Now April to July tax got adjusted in my closing statement. Can I claim in my return?

[TurboUser6]

Also, I paid some Pre-paid tax in closing statement. Can I claim in my return?

Apart from this, my 1098 Box-5 total does not match with my Actual Interest paid in 2017 + PMI + Prepaid Tax on Closing Statement. What should I do?

[Carl]

Just enter the 1098 exactly as printed. Then a screen or two later you're asked for additional property taxes not on the 1098. You'll enter those on the closing statement that you know for a fact are not included on the 1098, on the "additional property taxes" screen.

[TurboUser6]

Thanks Carl. How about PMI which was paid through my monthly mortgage payment? Can I add that too under "Additional Property Taxes" ?

[Carl]

No. PMI is no longer deductible starting in 2017. On some 1098's it can be listed as MIP.
PMI - Private Mortgage Insurance
MIP - Mortgage Insurance Premium
Both are the same thing, and are no longer deductible.

[TurboUser6]

Thanks Carl. This helped. I will just add Pre-paid Interest and Property Tax, which was considered in Closing Statement.

[Carl]

Right. Just make sure you're not unknowingly double-dipping on the property tax and interest. I've seen situations where the 1098 includes the property taxes and interest already reported in the closing statement.

[TurboUser6]

Sure Carl. I have requested breakdown of 1098 amount from Bank. I will decide based on that breakdown details.

[Carl]

You "should" be able to log into your mortgage account online. There you can pull up everything on the escrow account. If the amount withdrawn from escrow for property taxes in 2017, agrees with the amount on your 1098, then you "know" you won't be double-dipping. That way, you don't have to wait on the bank.

[TurboUser6]

Actually, 1098 Form amount is not matching my year end summary on Account. There is $1400 difference. 1098 shows less $1400 and I am unable to find why there is this difference. I tried all math but no luck. So have to get breakdown from bank only.