I paid my 2022 property taxes in Oct 2021, as a requirement of my refinance process at that time. I did not make any property tax payments in the calendar year 2022. It just made my next one in January 2023. Am I eligible to deduct my 2022 property taxes even though I did not make a physical payment in that calendar year? In other words, can I deduct what prop taxes I accrued in year 2022 or is it strictly tied to when I made the payment as to what I can deduct? Thanks.

I believe you can only deduct it in the year it was paid.

It's tied to the year you make the payment.

As an aside, it's gotten hard to claim a deduction on property taxes for most folks with the $10,000 SALT cap. Wish they'd fix that. ETA - especially for SD for married filing jointly

Regarding the SALT deduction limit, keep in mind lowering that greatly benefits folks in east and West coastal states with high state income taxes.

If two years of property tax will get you a deduction then pay one year in January then again in December. Then don't make a payment the next year, then do January and December again.

That is how you did it before the SALT caps (itemize the years you double up your property tax payments and take the SD the other years unless you still had large deductible expenses), does not make much sense these days given how high the SD is.

As mentioned, only deductible in the year you actually pay. Also as mentioned, between the SALT caps and the wide gap between that cap and the standard deduction, itemizing no longer makes sense many that were doing it before.

It's the date the taxes are paid. With the higher standard deduction, if you don't pay enough itemized deductions to itemize, here's a trick where maybe your itemized exceeds standard… example.

Pay your 2022 taxes in January 2023 and then pay your 2023 taxes in December 2023. Then you can deduct property taxes for both years on 2023 taxes and maybe you can then itemize

txaggieacct85 said:

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It the date the taxes are paid. With the higher standard deduction, if you don't pay enough itemized deductions to itemize. Here's a trick where maybe your itemized exceeds standard… example.

Pay your 2022 taxes in January 2023 and then pay you Mr 2023 taxes in December 2023. Then you can deducts property taxes for both years on 2023 taxes and maybe you can then itemize

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Used to put a note to that effect in the transmittal letter for every return that was close to being able to itemize. Then with the higher standard deduction and the SALT cap it wasn't nearly as applicable as it once was. Could still help a few, but not as many as before.

Thanks, I appreciate the responses.

I was told by a COA a number of years ago that, while the rule is deduct in the year you paid, it doesn't really matter. What's important is you only claim it once. In other words, say you pay it in December, but then decide not to claim it, and you claim it the following year . The IRS isn't going to make an issue of when you paid it.

Not saying this is the technical correct answer, but it is the reasonable/practical answer.