What happens if you cannot pay your property tax for this year because you didn't recieve your mortagae check to pay them?

[cora-monteen]

Mortgage company is not sending escrow check until 1-31-22. Will I know owe money?

[Critter-3]

If you don't pay your RE taxes in 2021 then you cannot deduct them on the 2021 tax return.

Check with the property tax office to see what happens if you pay late ... usually there is a penalty or interest added.  Where I live they send out the bills in November but they are not due until March but there is a discount for every month you pay early so this is the incentive to get folks to pay early which all escrow accounts will do automatically.   Since you don't have an escrow account any longer then it is your responsibility to pay the taxes timely. 

[xmasbaby0]

If you did not pay your property tax by the end of 2021 then you cannot claim it as a deduction on a 2021 tax return.   It is not about what year the tax bill is "for" -- it is about when you paid it.   

[cora-monteen]

Thank you I knew I wouldn't be able to deduct them I am more worried how it will effect my return for 2021 and if then they fix when I receive my mortgage check for 2022 do I deduct both 2021 and 2022 property taxes. We never had it happen where our escrow check didn't come by the end of the calendar year.

[cora-monteen]

Thank you I knew I wouldn't be able to deduct them for this year now. I am more worried how it will effect my return for this year 2021. Then if then they fix when I receive my mortgage check for 2022 do I deduct both 2021 and 2022 property taxes. We never had it happen where our escrow check didn't come by the end of the calendar year.

[xmasbaby0]

Property tax can only be deducted for the year in which you actually paid it.   And there is a $10,000 cap on the amount you can use as a deduction on a federal return.   So if you do not pay until 2022 then you have to wait and use the property tax on your 2022 tax return.   If you pay more than $10,000 for the two years of tax then you are limited to the $10,000 anyway.  Sorry.  

Do you have enough itemized deductions to make a difference?  Many people do not and they end up just taking the standard deduction.

STANDARD DEDUCTION

Many taxpayers are surprised because their itemized deductions are not having the same effect as they did on past tax returns.  The new higher standard deduction and the elimination of certain deductions, as well as the cap on state and local taxes have had a major impact since the new tax laws went into effect beginning with 2018 returns.

Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund.  The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting  tough thresholds—medical expenses, for example, must meet a threshold that is pretty hard to reach. (Only the amount that is MORE than 7.5% of your AGI counts)   The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you.  Under the new tax laws, some deductions have been capped—there is a $10,000 limit to the itemized deductions for state, local, property and sales taxes.

2021 STANDARD DEDUCTION AMOUNTS

SINGLE $12,550  (65 or older + $1700)

MARRIED FILING SEPARATELY $12,550  (65 or older + $1350)

MARRIED FILING JOINTLY $25,100  (65 or older + $1350 per spouse)

HEAD OF HOUSEHOLD  $18,800  (65 or older +$1700)

Legally Blind + $1350