Mortgage escrow is short

[JoeH]

The $300 is not interest paid to the mortgage company, it should under federal escrow rules go into the escrow account. But it should leave the account closer to even when the next property tax bills come along. As for what is deductible on taxes, only the amount actually paid out in a year on taxes is deductible. You can not claim it just because it was paid into the escrow account.