How to report prepaid property tax?

[miernikcx]

I bought a SFH last December. In closing, I paid for property tax for period from 1/1/2024 to 6/30/2024.

When filing my tax return for 2023, I am asked to enter the property tax paid in 2023. Should I enter my pre-paid tax or not? Thanks!

[DianeW777 · Accepted solution]

Yes, you are allowed to enter the property taxes you were required to pay in 2023.  If you itemize your deductions you are allowed to include any amount actually paid in 2023.

• Standard Deduction or Itemized Deductions - Which is best?

On the Settlement Statement it will show the property taxes you paid that were required at settlement and those that must be placed in escrow. Be careful not to use any escrow funds, only the actual taxes paid by you or through your escrow account in 2023.