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Most state and local governments charge an annual tax on the value of real property that you own. Any of these real estate taxes (also called property taxes) on your primary or secondary residence are generally deductible on your return. For exceptions, see the additional information below.

To enter your deductible real estate taxes in the TaxAct® program:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Itemized or Standard Deductions in the Federal Quick Q&A Topics menu to expand, then click Taxes paid.
  3. Continue with the interview process to enter all of the appropriate information.
  4. On the screen titled Enter any other deductible taxes paid in 2020, enter "Real estate (property)" for the Type of tax, enter the qualified Amount paid, then click Continue.

The amount of real estate taxes paid may be reported to you on Form 1098 Mortgage Interest Statement.

Additional Information

You cannot include:

  • Foreign taxes you paid on real estate.
  • Itemized charges for services to specific property or persons (for example, a $20 monthly charge per house for trash collection, a $5 charge for every 1,000 gallons of water consumed, or a flat charge for mowing a lawn that had grown higher than permitted under a local ordinance)
  • Charges for improvements that tend to increase the value of your property (for example, an assessment to build a new sidewalk). The cost of a property improvement is added to the basis of the property. However, a charge is deductible if it is used only to maintain an existing public facility in service (for example, a charge to repair an existing sidewalk, and any interest included in that charge).

If your mortgage payments include your real estate taxes, you can include only the amount the mortgage company actually paid to the taxing authority in 2020.

If you sold your home in 2020, any real estate tax charged to the buyer should be shown on your settlement statement and in Box 6 of any Form 1099-S Proceeds From Real Estate Transactions you received. This amount is considered a refund of real estate taxes. See Refunds and rebates, later. Any real estate taxes you paid at closing should be shown on your settlement statement.

For more information, see IRS Instructions for Schedule A Itemized Deductions, Line 5b on page A-7.

Your deduction may be limited. See Reduction of Itemized Deductions for more information.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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