The homestead property tax credit is a credit that helps pay some of your property taxes if you qualify as a renter or homeowner. Each state has different rules and forms to apply for this credit but many of these forms are available at TurboTax Online.
Most of the time this credit is figured out based on your income for the previous year versus the amount of property taxes paid during that same year.
Do you qualify?
The credit is most helpful for the blind, disabled, and elderly. Many other residents may also qualify for a portion of this credit as well. In order to qualify you must be using the amount of property taxes on your permanent home and you may only have one residence at any given time. You may not use property that you own and rent out, cottages, or any type of secondary residence. You must file this credit through your state and you are usually required to be a resident of that state for at least six months and your household income will be subject to certain limitations.
There are some special situations that may change if you qualify or if you qualify for a reduced or fixed credit. If you have moved during the year then you may be required to file two separate credit forms. If you currently reside in a nursing home or adult foster care home you may claim your portion of any taxes that you have paid. If you live in public housing you may not be eligible for any tax credit.
TurboTax online offers free tools and calculators to estimate the amount of homestead tax credit you may receive for your individual state. Please visit TurboTax Online to simplify the process of filing for the homestead tax credit.
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