? about property taxes & tax refund

[frannn]

I am depending on my tax refund to pay for our WDW trip and home/car repairs this year, so I am trying to squeeze out every last cent! As I was figuring our itemized deductions, I found that my property taxes had increased from last year by about 1500. (As shown on the tax statement the mortgage company sent out). I am confused by this because the notice I received from the county (or whomever sends the reassessment type increases) only showed the increase to be about 350. Last year we refinanced-would this have lowered the amount of property taxes paid? Are there any other taxes included on the mortgage statement that may have increased in addition to my personal property taxes? I didn't dispute the increase (like many Long Island, NY residents) because I thought it was pretty low. Now I'm confused. Can anybody explain? Thanks!

 

[ibleedblue]

This could have been because the taxes for year 2002 weren't paid until January 2003, then when you refi'ed you paid taxes at closing. That would have effectively put you paying 2002 taxes plus 2003 taxes during the 2003 tax season. I'm just guessing though. I had that happen to me last year. For whatever reason my mortgage company didn't pay my 2002 taxes till January 2003. I refi'ed in June 2003 and wound up getting to write off two years of tax for last year because my new mortgage company paid my 2003 tax bill in December.

Refi'ing wouldn't lower the amount of propertey taxes you paid. That's based on the tax value of the home, which doesn't change based on what you owe.

But this works in your favor if it's already been paid because now you get to write off an extra $1500 that you weren't counting on so your refund will be more.

This is probably more confusing than helpful. I'm sure there are some CPA's on the Dis that can answer this better than me.

Greg

 

[kitkatsmom]

Refiancing wouldn't lower your property tax paid but it Does lower the interest paid.

Make sure you aren't confusing the two.