Can I deduct property tax for 2023 on my tax return if payment was delayed to 2024?
So I'm in a bit of a predicament with my property taxes. My county sent out the property tax bills ridiculously late (like, not until 2024 late), and I pay these taxes through an escrow account with my mortgage company. When I got my 1098 form, it shows $0 for real estate taxes paid, which technically makes sense since the actual payment to the county happened in 2024. The thing is, I've been making my escrow payments throughout 2023 as part of my mortgage. My yearly property tax is well over the $10K SALT deduction limit, and I really want to claim my 2023 property taxes on my 2023 tax return (which seems like how it should work anyway). Is there any way I can deduct these 2023 property taxes on my 2023 return even though the payment from escrow to the county didn't happen until 2024? I don't want to lose this deduction or have to wait until next year's taxes. Anyone dealt with something similar?
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Emma Olsen
This is a common issue that comes up with late property tax bills. The IRS is pretty clear on this - you can only deduct property taxes in the year they're actually paid to the taxing authority, not when you put money into escrow. For cash basis taxpayers (which is most individuals), the deduction is available in the year the payment is made to the county/city, not when funds are transferred to escrow. Since your mortgage company didn't pay the property taxes until 2024 (as shown by your 1098 showing $0), you'll have to wait and take the deduction on your 2024 return. I know it's frustrating, but there's really no way around this rule. Your escrow payments to your mortgage company aren't considered "payment of taxes" - only when the mortgage company forwards that money to the tax authority does it count as paid for tax purposes.
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Lucas Lindsey
•But that doesn't seem fair! What if next year they're on time and then I'd have to claim both 2023 and 2024 property taxes in the same tax year? Wouldn't that put me way over the SALT cap and I'd lose a ton of deduction value?
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Emma Olsen
•You're right to be concerned about that scenario. Unfortunately, the tax law doesn't take "fairness" into account here - it's strictly about when the payment was actually made to the taxing authority. If both the 2023 and 2024 property taxes get paid in 2024, then yes, you may end up hitting the $10,000 SALT cap and losing some deduction value. The SALT cap applies per tax year, so any amount over $10,000 in 2024 wouldn't be deductible regardless of which tax year the property taxes were for.
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Sophie Duck
I had a similar issue last year and found a solution with taxr.ai. I was so confused about when I could claim my property taxes since my county was also super late sending bills. I uploaded my mortgage statements and property tax bills to https://taxr.ai and their system quickly analyzed the timing of payments and what I could legally claim. They showed me exactly what documentation I needed to maximize my deduction while staying compliant with IRS rules. The analysis made it crystal clear when the property tax was technically "paid" for tax purposes.
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Austin Leonard
•Does taxr.ai actually give you documentation you can use if you get audited? I'm worried about claiming these property taxes incorrectly and getting in trouble with the IRS.
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Anita George
•How does it work with the SALT cap though? Like if both tax years end up paid in the same calendar year?
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Sophie Duck
•Yes, they provide a detailed report that breaks down all the relevant tax laws and explains exactly how they apply to your situation. It's definitely documentation you can use to support your position if questioned by the IRS. The system actually addresses the SALT cap issue directly. It analyzes your specific situation and shows you the optimal approach based on when payments were made, not just when bills were issued. If you're facing the situation where two years of property taxes might hit in one calendar year, they provide strategies for managing the SALT limitation based on your full tax situation.
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Anita George
Just wanted to update - I decided to try taxr.ai after reading about it here and it was surprisingly helpful! I was skeptical at first (seemed too easy), but I uploaded my mortgage statements and tax bills and got a detailed analysis showing exactly why my property taxes weren't deductible until 2024 based on actual payment dates. They even explained a strategy for timing my final mortgage payment of 2024 to optimize next year's deductions. Didn't realize I had options here - definitely saved me from making a mistake on my return!
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Abigail Spencer
I was in your exact situation last year and spent HOURS trying to get someone at the IRS to clarify this for me. Called like 15 times and could never get through. Finally found Claimyr (https://claimyr.com) and they got me connected to an actual IRS agent in about 20 minutes. You can see how it works in their demo: https://youtu.be/_kiP6q8DX5c. The agent confirmed exactly what others are saying here - it's when the mortgage company pays the county that matters, not when you pay your escrow. Having that direct confirmation from the IRS gave me peace of mind to file correctly.
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Logan Chiang
•Wait, does this actually work? I've never been able to get through to the IRS and wait times are insane. How does some service magically get you through faster?
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Isla Fischer
•Sounds like a scam honestly. The IRS doesn't let people cut in line. What's the catch?
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Abigail Spencer
•It absolutely works! It's not about "cutting in line" - they use technology that navigates the IRS phone tree and waits on hold for you. When an agent actually picks up, you get a call connecting you directly to that agent. No magic, just smart automation. I was super skeptical too. But they don't do anything shady - they're just waiting on hold so you don't have to. You can literally see exactly how it works in that video I linked. The IRS doesn't care who's waiting on the line, they just answer calls in the order received.
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Isla Fischer
Ok I have to admit I was wrong about Claimyr. After posting that skeptical comment, I decided to try it because I was desperate for answers about my property tax situation. It actually worked exactly as advertised. Got a call back in about 35 minutes (was quoted 30-40), and talked to a real IRS agent who confirmed everything about the property tax payment timing. The agent explained that I need to look at Box 11 on my 2024 Form 1098 (next year) to see the property taxes paid in 2024, even if they were for 2023. Saved me hours of frustration!
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Miles Hammonds
Have you called your mortgage company? Sometimes they'll issue a corrected 1098 or a separate statement showing the property tax payments. My servicer provided documentation when we had a similar situation, which helped clarify things for tax filing. Worth asking them directly.
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Christian Bierman
•I did call them actually! They basically just confirmed what the 1098 shows - that the actual payment to the county hadn't been made yet in 2023. They said they could provide a statement showing my escrow contributions, but they were clear that doesn't change when the tax was technically "paid" for IRS purposes. Frustrating but at least consistent with what everyone here is saying.
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Ruby Blake
Quick question: if I'm using turbotax to file, where do I even put this property tax info for next year? Will it show up automatically from my 1098 or do I need to enter it manually? This is my first year itemizing.
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Emma Olsen
•In TurboTax, the property tax paid will typically import automatically if you have your 1098 imported electronically. If not, you'd enter it manually in the "Deductions & Credits" section under "Home Mortgage Interest and Real Estate Taxes." Look for the section about Form 1098 and it will ask for the amount in Box 11 (which is where property taxes paid by your mortgage company appear).
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