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Totally confused with taxes

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Totally confused with taxes

Old 02-15-06, 11:40 AM
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Totally confused with taxes

Ok.. I have started to do my taxes using turbotax.. I have all my info together. I bought a new house in May 05. The house/mortgage/taxes is really confusing me. For some reason, my property tax was like $150 for the year. I guess I pay a lot in school taxes. I looked online at what it is, but am having trouble deciphering it.

Also, my mortgage company is paying my taxes (well I am, but it is lumped in).. If my taxes go up, will my monthly payment to my mortgage company go up as well? I know my property is going to be reassessed soon, so I expect a huge jump
Old 02-15-06, 11:53 AM
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Wouldn't school taxes be part of property tax? What did you pay total in tax to the tax assessor that you wouldn't have paid to them if you rented instead of owned?
Old 02-15-06, 11:58 AM
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Property taxes being local, there is a YMMV element. However, usually taxes are paid to the local authority twice a year. When you pay into escrow and the bank actually pays the tax, you deduct what the bank pays the local authority. It should be on your 1099 along with mortgage interest.
Old 02-15-06, 12:01 PM
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Originally Posted by X
Wouldn't school taxes be part of property tax? What did you pay total in tax to the tax assessor that you wouldn't have paid to them if you rented instead of owned?
It looks like they are seperate. If i rented i wouldn't pay anything in taxes... i think
Old 02-15-06, 12:06 PM
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Take a look at your closing statement for when you bought the house. It probably has some amount of taxes you paid at that time, which would have been prorated. That should be added into your property taxes.

How to you pay a tax to the school and what is it based on? If it is based on the value of your home, it is a property tax.
Old 02-15-06, 12:19 PM
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Originally Posted by j123vt_99
Ok.. I have started to do my taxes using turbotax.. I have all my info together. I bought a new house in May 05. The house/mortgage/taxes is really confusing me. For some reason, my property tax was like $150 for the year. I guess I pay a lot in school taxes. I looked online at what it is, but am having trouble deciphering it.

Also, my mortgage company is paying my taxes (well I am, but it is lumped in).. If my taxes go up, will my monthly payment to my mortgage company go up as well? I know my property is going to be reassessed soon, so I expect a huge jump
1) I'm sure you didn't mean $150 for the year for the property tax. Did you mean $1500? What is the assessed value of your land and property? If you are "lucky", they did the appraisal before you house was complete. Travis County does them kinda early (February?) so that you have time to appeal (May or June?). You still should have gotten a receipt (it would probably be a postcard looking thing) from the Tax Assessor's office.

Look up your appraisal info via your name here (yep, Travis County is pretty "open records" isn't it):
http://www.traviscad.org/travissearc...name&kind=real

You can also look up your tax/payment info (this is the tax assessor, which is separate to the appraisal body above) by name:
http://www.traviscountytax.org/showNameSearch.do

Though I'm having trouble on my work PC opening up the "Tax Statements". You should be able to see what was paid there.

Or just contact your mortgage broker (or their website?) and look on the "1098" (not 1099, OldDude. I'm sure that was just a typo! This is the form you get from your mortgage company where you saw your interest paid for the year). The appropriate tax amount for your property taxes would be on that form (if the mortgage company paid them on time, i.e. by 12/31/05, though they aren't "due" until 1/31 in Travis County).

And yes, all the taxes paid (in my case, Travis County, Pflugerville ISD, Travis County Hospital District, and Travis County ESD [EMS and Fire]) are based on property value, and therefore count as deductions for Federal Tax purposes. You may also have city taxes, and Austin Community College (maybe Cap Metro?). But again, I don't think of them individually. Just whatever is shown on your 1098 each year is the number you care about.

So, if you are REALLY REALLY lucky, your appraised value for 2005 is low because your house wasn't done. There are curbs in place that keep your value from going up by too large a percent (10 or 15% per year is allowed as an increased of appraised rates?). This is a Texas rule, not sure if other states have it. So you could see the bonus of a low appraisal for a couple years until you "catch up" to the market value of the house.

2) Yes, once a year your mortgage company will redo your escrow account for your current taxes, insurance, mortgage insurance, and the "cushion" (i.e. an interest free loan to them they can use if their numbers are wrong). Don't know when yours will be done. Then, from then until the next time they do it again, your monthly payment will change to that new amount.

3) When you looked up your property value in the "traviscad.org" site, was your assessed value the same as your taxable value? If so, then you didn't yet file for your "Homestead Exemption". This will reduce your taxable for a couple of the entities. Not by a ton, but every penny helps. Here is the form: http://www.traviscad.org/HomesteadExemption.pdf

Last edited by Y2K Falcon; 02-15-06 at 12:28 PM.
Old 02-15-06, 12:22 PM
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Originally Posted by Y2K Falcon
and look on the "1098" (not 1099, OldDude.
True, I typo'd
1099 = You GOT paid
1098 = You paid. (and can deduct)

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