July 20, 2018 | Bob Myers

September 30th is the deadline to apply for the Maryland Homeowners Property Tax Credit.

What is the Homeowners' Property Tax Credit Program?

The State of Maryland has developed a program which allows credits  against the homeowner's property tax bill if the property taxes exceed a fixed percentage of the person's gross income. In other words, it sets a  limit on the amount of property taxes any homeowner must pay based upon  his or her income.

How Is "Income" Defined?

For purposes of the tax credit program, it is emphasized that  applicants must report total income, which means the combined gross  income before any deductions are taken. Income information must be  reported for the homeowner and spouse and all other occupants of the  household unless they are dependents or they are paying rent or room and board. Income from all sources must be reported whether or not the  monies received are included as income for Federal and State income tax  purposes. Nontaxable retirement benefits such as Social Security and Railroad Retirement must be reported as income for the tax credit  program. Generally, eligibility for the tax credit will be based upon  all monies received in the applicant's household in a given year.

What Are The Other Requirements?

Before your eligibility according to income can be considered, you must meet four basic requirements
  • You must own or have a legal interest in the property.
  • The dwelling on which you are seeking the tax credit must be your  principal residence where you live at least six months of the year,  including July 1, unless you are a recent home purchaser or unless you  are unable to do so because of your health or need of special care.
  • Your net worth, not including the value of the property on which you  are seeking the credit or any qualified retirement savings or  Individual Retirement Accounts, must be less than $200,000.
  • Your combined gross household income cannot exceed $60,000.

Prospective Home Buyers
Qualified home purchasers should apply in advance for the Homeowners'  Tax Credit before acquiring title to the property. The purpose of this  program is to help reduce the amount of monies needed at the time of  settlement. You must apply at least 30 days before your expected  settlement date to receive any credit due at the time of settlement.

For more information:
http://dat.maryland.gov/realproperty/Pages/Homeowners'-Property-Tax-Credit-Program.aspx

Please consider The Myers Team your resource for all things real estate.  We have over 30 years of real  estate experience, specializing in the Montgomery County area.  If you are refinancing, want a recommendation, need a service provider or just  have a home related question, please give me a call at 301-910-9910 or  email me at bobmyersteam@gmail.com.
Share

check_circle

You message has been sent!

Send us a Message


View our Privacy Policy