You can deduct taxes you paid on real estate if the following qualifications are met:
- The real estate you own was not used for business.
- These taxes are based on the assessed value of your property.
- The assessment of the value of real estate was made uniformly on property throughout the community.
- The proceeds from paying these taxes must be used for general community or governmental purposes.
If your mortgage payments include your real estate taxes, you can only deduct the amount the mortgage company paid to the taxing authority during the tax year.
Real Estate Taxes are itemized deductions. Beginning in tax year 2018, the standard deduction has been increased. Your real estate taxes will only affect your refund amount if the standard deduction amount is more than the itemized deduction amount (unless you force itemize deductions).
Beginning in 2018, there is a maximum amount of state and local taxes you can claim on the federal return. The limit is $10,000 ($5,000 if Married Filing Separately) and includes sales tax/state income tax, real estate tax and any personal property tax you have.
Refunds and Rebates:
If you received a refund or rebate during the tax year, you must reduce your deduction by the amount of that refund or rebate. Only reduce your deduction by the amount of the refund or rebate that was from taxes paid during the tax year. If you received a rebate or refund from real estate taxes you paid in a prior year, you do not need to reduce your deduction. For example, in August of 2013 Tom received a rebate for real estate taxes he had previously paid. This rebate was for real estate taxes he paid during 2012. Since he actually paid the taxes in a previous year (he didn't pay them during 2013, the year for which he is filing his taxes and plans to take the deduction), he does not need to reduce his deduction. If he had instead received a rebate during 2013 for taxes, he had paid earlier in 2013, he would have to reduce his deduction on his 2013 return for real estate taxes paid.
DO NOT INCLUDE: Itemized charges for services to specific property. For example, if you pay association dues or if you pay for trash collection, water, gas, electric, homeowner's insurance premiums or property maintenance, you cannot deduct these payments.
Program Entry
- Federal
- Deductions
- Itemized Deductions
- Mortgage Interest and Expenses
- Mortgage Interest Reported on Form 1098
- Real Estate Taxes (Non-Business Property)
You can also enter your Real Estate Taxes by going to:
- Federal
- Deductions
- Itemized Deductions
- Taxes You Paid
- Real Estate Taxes (Non-Business Property)
Note: Real Estate Taxes entered here will overwrite any real estate taxes paid already entered.