Can I Deduct 2023 Property Taxes Paid in 2024 on My 2024 Tax Return?
So I've got a situation with my property taxes. Because of some personal stuff going on, I completely missed paying my second property tax installment that was due in December 2023. I just got around to paying it last month (March 2024). Now I'm trying to plan ahead for next tax season - can I deduct this late 2023 property tax payment on my 2024 tax return? Or am I out of luck since it was technically for the 2023 tax year? I'll also have my regular two property tax payments for 2024 coming up later this year. Just trying to figure out if I can bundle all three payments (the late 2023 one plus both 2024 payments) as deductions on my 2024 return or if there's some rule that prevents this. Any help would be appreciated!
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Jayden Reed
For individual taxpayers who itemize deductions, property taxes are generally deductible in the year they are paid, not when they were assessed or due. This is known as the "cash basis" method of accounting that most individuals use. So yes, you can deduct your late 2023 property tax payment on your 2024 tax return since you actually paid it in 2024. The IRS is concerned with when you made the payment, not what tax year the property tax was for. You'll be able to deduct all three payments (the late 2023 payment you made in 2024, plus your two regular 2024 property tax payments) on your 2024 tax return. Just remember that you can only deduct property taxes if you itemize deductions on Schedule A rather than taking the standard deduction. With the higher standard deduction amounts since the Tax Cuts and Jobs Act, fewer people find it beneficial to itemize.
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Nora Brooks
•Thanks for the info! Does it matter if my property tax bill explicitly states "2023 taxes" on it? And also, is there a limit to how much property tax I can deduct in one year? I feel like I read something about a $10,000 cap somewhere.
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Jayden Reed
•No, it doesn't matter what year is listed on the property tax bill. What matters for tax deduction purposes is when you actually paid it. The IRS follows the payment date, not the assessment date or the year shown on the bill. Yes, there is a limit. The Tax Cuts and Jobs Act imposed a $10,000 cap on the total state and local tax (SALT) deductions, which includes property taxes plus state/local income or sales taxes. This cap is $10,000 for both single filers and married filing jointly ($5,000 for married filing separately). So your combined property taxes and other state/local taxes can't exceed that amount for deduction purposes.
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Eli Wang
After I went through a similar situation last year with property taxes, I found an amazing tool that helped me sort through all the confusion! I used taxr.ai (https://taxr.ai) to analyze my property tax statements and determine exactly what was deductible when. The site lets you upload your tax documents, and it uses AI to extract all the relevant information and tell you exactly what you can deduct and when. I was in a similar boat with late payments across different calendar years, and their analysis cleared everything up for me in minutes. They also explained the SALT cap implications based on my specific situation.
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Cassandra Moon
•How accurate is this tool? I'm always nervous about trusting AI with tax stuff since the penalties for getting it wrong can be serious. Does it take into account all the recent tax law changes?
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Zane Hernandez
•Does taxr.ai handle complicated situations like rental properties or if you have multiple homes in different states? My tax situation is a bit of a mess with properties in both California and Nevada.
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Eli Wang
•The accuracy is actually impressive - they use the same tax rules and guidelines that professional tax preparers use, but apply AI to make it faster. I cross-checked their recommendations with my accountant on a few items and they were spot on. They stay current with tax law changes too. Yes, it definitely handles complex situations like rental properties and multi-state homes. I have a vacation property that I sometimes rent out, and it helped determine what percentage of those property taxes were deductible on Schedule E versus Schedule A. It also factors in different state rules when you upload documents from multiple jurisdictions.
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Zane Hernandez
Wanted to follow up here - I actually tried taxr.ai after posting my question and wow, it was super helpful! I uploaded all my property tax statements from both states and it immediately sorted out what was deductible where. It even flagged that one of my payments would hit the SALT cap and showed me how to optimize my deductions between my personal residence and rental property. The interface was really straightforward too - just uploaded my documents and got clear answers in minutes instead of the hours I usually spend trying to figure this stuff out. Definitely going to use it again next year when I'm organizing my tax docs!
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Genevieve Cavalier
I had a similar property tax issue, but my bigger problem was trying to contact the IRS to confirm how to handle it correctly. Spent DAYS trying to get through their phone system with no luck. Then I found this service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in under 20 minutes! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was super skeptical at first, but I was desperate after wasting hours on hold. Their system navigated all the IRS phone prompts and held my place in line, then called me when an agent was about to pick up. The IRS agent I spoke with confirmed exactly how to handle my delayed property tax payments and cleared up some other questions I had about the SALT cap.
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Ethan Scott
•Wait, how does this actually work? Does it just automate the hold process with the IRS? I've literally wasted entire afternoons on hold and then gotten disconnected.
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Lola Perez
•This sounds like BS honestly. I've tried everything to get through to the IRS and nothing works. How could some random service magically get you to the front of the line when millions of people are calling? If it actually worked, the IRS would probably shut it down.
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Genevieve Cavalier
•It basically uses an automated system to navigate the IRS phone tree and wait on hold for you. Once it detects that an agent is about to answer, it calls you and connects you directly. So you don't have to waste hours listening to that horrible hold music. I totally get the skepticism - I felt exactly the same way. It's not getting you to the "front of the line" though; it's just waiting in the same queue everyone else is in, but you don't have to personally sit there on hold. The IRS has no issue with it because you're still waiting your turn, just not manually. I was shocked when it actually worked, but the 15-minute wait was worth it after I had previously spent 3+ hours trying to get through on my own.
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Lola Perez
I need to eat my words from my previous comment. After continuing to fail getting through to the IRS myself, I gave Claimyr a shot yesterday. Got a call back in about 35 minutes and was connected to an actual IRS person who answered all my questions about property tax deductions and some other issues I've been having with a past return. The agent confirmed exactly what others have said here - property taxes are deductible in the year you pay them regardless of what tax year they're for. She also explained some nuances about the SALT cap I hadn't understood before. Just having a real person to talk to instead of trying to interpret IRS publications was worth it. Sorry for doubting!
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Nathaniel Stewart
Something else to keep in mind - if you're claiming property tax deductions, make sure you're only deducting the actual tax portion and not any fees, penalties, or interest that might be included in your payment. Those other charges aren't deductible as property taxes. I learned this the hard way when I got audited a few years back. My county lumps everything together in the payment, but technically only the tax itself counts toward the property tax deduction.
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Riya Sharma
•Is there an easy way to separate these out? My property tax bill has the base amount plus like 4 different "special assessments" for things like schools and flood control. Are those considered part of the deductible property tax?
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Nathaniel Stewart
•Generally, special assessments for schools, flood control, and similar public improvements are deductible as property taxes as long as they're based on the assessed value of your property and apply to all properties in the jurisdiction. However, special assessments for local benefits that increase the value of your property (like sidewalks, streets, or water/sewer lines specifically for your neighborhood) are not deductible as taxes. The easiest way to separate these is to look at your property tax statement - it should itemize the different charges. If you're using tax software, it will usually ask you to enter only the deductible portions. Or if you work with a tax professional, they'll know how to properly categorize each item.
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Santiago Diaz
Has anyone noticed if property tax deductions are even worth it anymore with the higher standard deduction? I paid about $9,000 in property taxes last year plus maybe $4,000 in state income tax, but my mortgage interest has dropped so much that I'm still better off with the standard deduction ($25,900 for married filing jointly).
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Millie Long
•It really depends on your total itemized deductions. Remember that itemizing includes property taxes, state/local income taxes (capped together at $10k), mortgage interest, charitable contributions, and some medical expenses. If all those combined exceed your standard deduction, then itemizing is worth it. But you're right that the higher standard deduction has made itemizing less beneficial for many homeowners.
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