John asked:
That means I didn’t have enough money in my escrow balance to pay for the property taxes. My monthly payments increased to cover the deficit.
Is it what I paid out of my pocket or what the lender paid for me?
That means I didn’t have enough money in my escrow balance to pay for the property taxes. My monthly payments increased to cover the deficit.
Is it what I paid out of my pocket or what the lender paid for me?
the only portion of the taxes you can deduct are those that you actually paid.
You should have received a statement from your township showing the amount paid for property taxes.
Despite your escrow balance being negative, if the bank paid the taxes, then you can deduct the full amount.
Your monthly payments simply covered the deficit? Oh brother.
Whatever was paid – the bank will give you that info. Essentially they lent you the money to pay it, and you’ll pay it back the next year in your monthly house payments.
All of it. Your lender has loaned you the money to pay the taxes and your increased payment pays back the loan. It will show up on the IRS Form 1098 your lender will send you in January.