Can I claim property tax deduction on 2025 tax return if property taxes were paid in year of filing?

12 But what if I prepay my property taxes? Like if I pay my 2025 property taxes in December 2024, can I claim them on my 2024 return?

8 You definitely can deduct prepaid property taxes in the year you paid them, but there's an important caveat since the Tax Cuts and Jobs Act. You can only prepay and deduct property taxes that have actually been assessed. So if your county has already assessed your 2025 property taxes and you pay them in December 2024, you can claim them on your 2024 return. But if they haven't been officially assessed yet, the IRS won't allow the deduction until the year they're actually assessed and paid.

6 Does it work for other deductions too? Like mortgage interest and charitable donations? I always get confused about timing with those.

22 Sounds helpful, but how does it know the rules for different states? Property tax rules vary so much county by county.

15 It absolutely works for other deductions like mortgage interest and charitable donations! It follows the same cash basis principle - you can deduct them in the year you actually paid them. The tool helps clarify all these timing issues. The system is actually updated with tax rules for all 50 states plus local jurisdictions. That's why I was so impressed - it knew the specific rules for my county in Pennsylvania and even flagged a homestead exemption I didn't know I qualified for. The system is constantly updated whenever tax laws change.

3 Wait, how does this actually work? I thought the IRS phone system was basically impossible to get through. Does this actually put you ahead in line somehow?

22 Sorry but this sounds too good to be true. The IRS is notorious for long wait times. How could a third-party service possibly get you through faster than calling directly?

19 It works by using technology to navigate the IRS phone system and wait on hold for you. Instead of you personally waiting on hold for hours, their system does it for you and calls you back when an agent is available. It's completely legitimate - they don't "cut" the line, they just handle the waiting part. They actually use a combination of automation and real people to monitor the IRS phone system patterns and determine the best times to call. It's not bypassing anything - just making the existing system more efficient from the user perspective. They basically wait in line for you so you don't have to sit there listening to the hold music for hours.

1 That's actually really good to know. I hadn't considered that the standard deduction might be higher than my itemized. Do you know if there's a quick way to figure out if itemizing makes sense in my case? My property tax is around $4,200 and mortgage interest is about $9,300 annually.

17 Based on the numbers you shared, you're getting close to the threshold where itemizing might make sense. Your property tax ($4,200) plus mortgage interest ($9,300) gives you $13,500 in deductions already. The standard deduction for 2024 is $13,850 for single filers and $27,700 for married filing jointly. If you're single, just a few hundred dollars in charitable donations would push you over the threshold to make itemizing worthwhile. If you're married filing jointly, you'd need significantly more deductions to benefit from itemizing. A quick way to check is to add up your mortgage interest, property taxes, charitable donations, and any other eligible itemized deductions and compare the total to your standard deduction amount.

24 Does this actually work? Seems like it might raise red flags with the IRS. Has anyone else done this successfully?

Yes, this is a completely legitimate tax strategy called "bunching deductions" that many tax professionals recommend! The IRS allows it as long as the taxes have actually been assessed. I've done this successfully for three years now. The key is making sure your local tax authority has officially assessed the upcoming year's property taxes before you pay them early. Most counties assess property taxes by November or December, so you can often pay them early in December and still claim the deduction that year. Just keep good records showing the assessment dates and payment dates. My CPA actually suggested this strategy to help me exceed the standard deduction threshold every other year instead of being just slightly under it each year.

This is exactly the kind of clear explanation I was looking for! As someone new to homeownership, the timing rules around property taxes have been really confusing. I appreciate you breaking down both the payment timing rule AND the reminder about checking if itemizing actually makes sense. Quick question - if my mortgage interest is around $8,500 and property taxes are $4,200, that puts me at $12,700 total. I'd need another $1,150+ in other deductions to make itemizing worthwhile as a single filer, right? Are there other common deductions new homeowners often overlook that might help me reach that threshold?

Yes, exactly right on the math! You'd need about $1,150 more in deductions to make itemizing worthwhile. Here are some common deductions new homeowners often miss: • **State and local income taxes** - This can be substantial depending on your state • **Charitable donations** - Both cash and non-cash donations count • **PMI (Private Mortgage Insurance)** - If you're paying this, it may be deductible • **Points paid on your mortgage** - Often deductible in the year you bought • **Home office deduction** - If you work from home regularly • **Medical expenses** - Only the portion exceeding 7.5% of your AGI, but can add up State income taxes alone might get you over the threshold. Also remember there's a $10,000 cap on the total of state/local taxes + property taxes combined (SALT cap), so factor that in if you live in a high-tax state.

Thanks for the clear explanation! I'm actually in a similar situation as the original poster - bought my first house last year and trying to figure out all these timing rules. One thing I'm curious about - if I pay my property taxes online through my county's website, does the payment date that matters for taxes the date I submit the payment online, or the date it actually gets processed/cleared from my bank account? I want to make sure I'm documenting the right date for my records.

For online payments, the IRS generally considers the payment date to be when you submit and authorize the payment online, not when it clears your bank account. So if you pay your property taxes online on December 31st but it doesn't clear your account until January 2nd, you can still claim the deduction for the year you authorized the payment. However, I'd recommend keeping documentation of both dates just to be safe - screenshot the confirmation page showing when you submitted the payment, and also keep your bank statement showing when it cleared. Most counties will also send you a receipt or confirmation email with the payment date, which is great documentation for your tax records. The key is that you need to have actually committed to the payment in the tax year you want to claim it, not just scheduled it for a future date.

This is such a crucial point about escrow that I wish I had known earlier! I made the exact same mistake my first year as a homeowner - I was calculating my potential itemized deductions based on my monthly escrow payments, not realizing that the actual property tax payment timing is what matters. For anyone else dealing with this, your mortgage servicer should provide a year-end statement (usually Form 1098) that shows exactly when and how much they paid in property taxes on your behalf. This is the document you'll need for your tax records, not your monthly mortgage statements. It's definitely worth calling your lender in January to confirm the timing of property tax payments if you're trying to plan your deductions for the current tax year. Some lenders pay property taxes right when they're due, others might pay them early or late depending on their processes.

This is incredibly helpful, especially the point about the SALT cap! I'm in California so I definitely need to factor that $10,000 limitation into my calculations. It sounds like even if my property taxes are $4,200, if I'm also paying significant state income taxes, I might hit that cap pretty quickly. Quick question about the strategic timing you mentioned - if I'm trying to bunch deductions in one year to exceed the standard deduction threshold, are there any rules about how far in advance I can prepay things like property taxes? I know you mentioned they need to be assessed first, but is there a limit on how early I can pay them once they're assessed?

Great question about prepayment timing! Generally, there's no specific limit on how early you can pay property taxes once they've been officially assessed by your local tax authority. The key requirement is that the taxes must be "assessed" (officially determined and billed) before you can claim the deduction, even if you pay early. Most counties assess property taxes sometime between October and December for the following year, so you typically have a window of a few months where you could prepay and still claim the deduction in the current tax year. However, the exact timing varies significantly by location - some places assess much earlier, others later. Your best bet is to contact your county tax assessor's office directly to ask when the next year's property taxes will be officially assessed. Once they're assessed, you're generally free to pay them immediately if you want to bunch the deduction into the current tax year. Just keep in mind that SALT cap you mentioned - if you're already hitting the $10,000 limit between state income taxes and current year property taxes, prepaying additional property taxes won't give you any extra deduction benefit due to the cap.

You're absolutely right that hitting the SALT cap changes the strategy significantly! If your state income taxes ($7,000) plus property taxes ($5,500) already put you at the $10,000 SALT limit, then timing your property tax payments won't give you any additional federal tax benefit - you're already maxing out that deduction category. However, there are still a couple of things to consider as a new homeowner in your situation: 1. **State tax benefits** - Even if federal SALT is capped, some states allow unlimited deductions for property taxes on state returns, so timing could still matter for state taxes. 2. **Future planning** - Tax laws can change, and the SALT cap is currently set to expire after 2025 (though this could be extended). It might be worth tracking your payment timing in case the rules change. 3. **Other itemized deductions** - Since you're already itemizing due to hitting the SALT cap, make sure you're capturing all other eligible deductions like mortgage interest, charitable donations, and any PMI payments. The good news is that being at the SALT cap actually simplifies your property tax timing decisions - you don't need to stress about bunching strategies since you're already maximizing that particular deduction!