We prepaid 2018 property tax in 2017 and then found out that we could not (and we did not) deduct it in 2017. Can we add that pre-paid amount to our 2018 deduction?

[Stinkerbellkity · Accepted solution]

No, it was still paid in 2017, whether you could deduct it or not. Property tax paid in 2017 is not deductible in 2018.

[hugtrish]

It does not seem fair that we should lose the deduction entirely!! Has this determination been challenged?

[TaxGuyBill]

The deduction happens when it is paid.  If you paid it in 2017, it goes on your 2017 tax return.

You can amend your 2017 tax return to claim it.  However, if the Standard Deduction is higher, you will OWE money by Itemizing and claiming the deduction.  So even though you claimed the Standard Deduction, you essentially have 'used' it in 2017.

[fanfare]

according to NJtaxation.org, prepaid property tax can be deducted in 2018, if it was assessed, on your State tax return. Your state may vary.