 and assessed prior to 2024 can be deducted for 2023. State or local law determines whether and when a property tax is assessed, which is generally when the taxpayer becomes liable for the property tax imposed. So refunds and rebates. If you receive a refund or rebate in 2023 of real estate taxes you paid in 2023, reduce your deduction by the amount of the refund or rebate. If you've received a refund or rebate in 2023 of real estate taxes you paid in an earlier year, don't reduce your deduction by this amount. So we have a similar scenario as we saw with like a state tax refund for example, however this is one that does not come up as often because when you pay your real estate taxes it's unlikely that you're going to get a refund. That doesn't happen all the time as it does happen all the time with a state income tax system designed similar to a federal income tax system in which you overpay and will basically be expecting some kind of refund typically. But if you did get a refund because you overpaid the taxes for whatever reason, if it happened in the same year then of course you would just reduce, you already know about it so you would reduce the amount of taxes you paid by the refund. If however you got a refund say in 2023 for real estate taxes you paid in 2022, the question as with the state tax refund same concept is did you get a benefit from the payment in 2022? If you itemized and deducted it you got a tax benefit. So then you would think well that means that I should just reduce the property taxes deduction I get to pay in 2023 but no that's not how we do it because maybe you're in a situation where you didn't have property taxes in 2023 or something instead of adjusting your deductions you're going to include it in income. So if you got a benefit from it last year and then you got the refund back you're not going to refund the prior you're not going to amend prior year return you're not going to adjust your deductions but rather the typical concept is you put it and include it in income in the current year. So that shouldn't happen like all the time but as it does happen all the time with the state income tax for example if someone is itemizing. So instead you must include the refund or rebate in income on schedule one form 1040 line 8z if you deducted the real estate taxes in the earlier year and the deduction reduced your tax. So see recoveries in publication 525 for details on how to figure the amount to include in income.