Property tax bill is delayed this year, can I still deduct in 2023 by estimating/prepaying without receiving bill?

So what happens if I end up prepaying anyway and the actual bill comes later and is different than what I paid? Can I deduct the prepaid amount in 2023 and then deal with the difference when filing 2024 taxes?

If you prepay based on your own estimate before the tax is assessed, the IRS doesn't consider it a tax payment for the current year - it's viewed as a deposit. When the actual assessment happens later, that's when the tax liability is officially created, and that would be the year you could claim the deduction. If you prepay and the actual bill is different, you'd have to handle it in the year the tax was actually assessed. Any excess payment would typically be applied to your next tax bill or refunded, while a shortfall would need to be paid. Neither situation allows you to split the deduction between two tax years.

Do they actually give you specific advice for your situation or is it just general information? My county's website is terrible and doesn't show if the assessment is complete or not.

I'm skeptical about these tax services tbh. How is this different from just asking a CPA? And can they actually tell you if YOUR specific county has assessed the taxes yet or is this just generic advice?

They definitely provide personalized advice based on your specific documents and situation. When I uploaded my county's property tax information, they analyzed it and pointed out exactly where it showed the assessment was complete even though bills weren't mailed yet. This was critical since I needed to prove the tax was "imposed" as the previous commenter mentioned. For counties with limited online information, they guide you on exactly what to request from your local tax assessor's office to document that the assessment is complete. Much more specific than general advice since they look at your actual documents.

Wait how does this actually work? Do they just call and wait on hold for you? I'm confused about what the service actually does.

This sounds kinda scammy to be honest. I've never heard of paying someone to make phone calls for me. What exactly are they doing that I can't do myself if I'm willing to wait on hold?

They use an automated system that navigates phone trees and waits on hold for you. Once an actual human answers, you get a call connecting you directly to that person. So you don't waste time listening to hold music or pressing buttons through menus. The service does exactly what you could do yourself, but without you having to spend the time waiting. It's especially useful for government agencies like tax offices where hold times can be ridiculous. I spent over 2 hours trying to get through on my own before using this. For time-sensitive tax issues when you need human confirmation quickly, the time saved was definitely worth it to me.

Thank you for sharing your experience! I just checked my county's website and found a property search function I didn't know about. You're right - they do have the assessed value listed even though bills haven't been mailed. Does having the assessed value mean it's officially "imposed" as someone mentioned above? I want to make sure I'm following the proper IRS guidelines.

Yes, if you can see the assessed value on the official county website, that means the tax has been "imposed" for IRS purposes. The physical bill is just a notification - the actual tax obligation is created when the assessment is finalized and recorded in the county system. Make sure to print or save a PDF of the assessment page showing the date and amount as documentation for your records. I also wrote "Property Tax Prepayment - PIN #12345" in the memo line of my check as additional documentation. The IRS never questioned my deduction.

I believe you're confusing the safe harbor rules for estimated tax payments with property tax deductions. For property tax deductions, the tax must actually be assessed (imposed) to be deductible in the year paid. There's no safe harbor that allows you to deduct estimated property tax payments before assessment.

You're right, I misunderstood what my accountant was telling me. He was actually referring to using last year's property tax amount for estimated tax payment calculations, not for claiming the property tax deduction itself. Getting the tax terminology mixed up shows why I need an accountant in the first place lol. Thanks for the correction!