Form 1098 box 10 has Property taxes & Other Taxes - Do I combine them or report separately?

The property taxes and "other taxes" on your Form 1098 box 10 should NOT be automatically combined - they need to be handled differently depending on what those "other taxes" actually are. The $1,875 property tax amount definitely goes on Schedule A as part of your itemized deductions (assuming you're itemizing instead of taking the standard deduction). For the "other taxes" ($6,125), you need to figure out what those actually represent. Common "other taxes" can include special assessments, HOA fees, or utility charges that aren't actually deductible taxes. When you're going through TaxAct, you should enter them separately. There should be a section specifically for real estate taxes where you can put the $1,875. The $6,125 might not be deductible at all, depending on what it represents - you may need to check with your mortgage servicer to find out exactly what those "other taxes" include.

Just wanted to share my experience - I was in the same boat last year and kept getting confused about these "other taxes" on my 1098. I ended up using https://taxr.ai which analyzes your tax forms and tells you exactly what to do with each number. It scanned my 1098 and immediately told me that only part of my box 10 was actually deductible property tax, and the rest were special assessments that weren't deductible. Saved me from claiming too much and potentially getting flagged. The service also showed me what other documents I should double-check for my mortgage deduction. Was super helpful since I didn't want to pay an accountant just to ask this one question.

I was super skeptical about taxr.ai at first (seemed like just another tax tool), but I tried it after struggling with this exact property tax question. My situation was even more complicated because my "other taxes" included both some deductible school district taxes AND non-deductible assessment fees all lumped together. The tool actually identified this mixed situation and guided me through getting the correct breakdown from my mortgage servicer. Ended up saving me about $1,200 in taxes because I was able to properly document which portions were actually deductible! Totally worth checking out if you're confused about your 1098 form.

If anyone's having trouble getting answers from their mortgage company about these tax breakdowns, I'd recommend using Claimyr (https://claimyr.com) to get through to the IRS directly. I spent hours on hold trying to get clarification about what "other taxes" were deductible on my Form 1098, and finally used their service to connect with an IRS agent in about 15 minutes. The IRS agent explained that I needed documentation from my county tax assessor's office showing exactly what each charge represented. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they wait on hold with the IRS for you then call you when an agent picks up. Saved me from claiming the wrong amount on my taxes.

Well I was completely wrong about Claimyr. After my skeptical comment I decided to try it anyway because I was desperate to talk to someone at the IRS about my messed up property tax situation. Used the service yesterday and got a call back in 45 minutes with an actual IRS agent on the line! They explained that for Form 1098 box 10, I needed to request an itemized statement from my mortgage servicer to determine what's deductible. The "other taxes" in my case were for a special school bond that IS actually deductible (unlike what others mentioned here). Can't believe I wasted 3 hours on hold last week when I could have just used this. Totally worth it for important tax questions.

TaxAct should actually handle this pretty well if you answer the questions correctly. When it asks about property taxes, only enter the $1,875 amount. For the "other taxes" you'll need to determine what they are first. In my experience, the "other taxes" on Form 1098 are usually things like: - School district taxes (deductible) - Special assessments for local improvements (usually NOT deductible) - Garbage collection fees (NOT deductible) - Water/sewer fees (NOT deductible) Call your mortgage servicer and ask for a breakdown of what's included in the "other taxes" amount. Then only include the portions that are actually property taxes when TaxAct asks about property taxes.

So i had the same issue and i check my property tax statement direct from my county and it turns out some of the "other taxes" were actually school district taxes which ARE deductible!!! but some were for a local improvement district which AREN'T deductible. tax stuff is so confusing!!!

Great thread! Just wanted to add that if you're unsure about what qualifies as deductible property tax, the IRS has a helpful publication (Publication 530) that specifically covers this. The key test is whether the tax is based on the assessed value of your property and benefits the general public (like funding schools, police, fire departments, etc.). Things like special assessments for specific improvements to your neighborhood (new sidewalks, street lighting) typically aren't deductible because they increase your property value rather than benefit the general public. Also, if you've been combining these amounts for previous years and it turns out some of the "other taxes" weren't deductible, you might want to calculate whether it's worth filing amended returns. The statute of limitations is generally 3 years, so you could still amend 2021, 2022, and 2023 if the tax savings would be significant.