Homestead tax credit Q&A
Consuming Interests columnist and blogger Dan Thanh Dang addresses a question today about the homestead property tax credit: Can you still qualify for it if you're renting out part of your house as well as living in it?
Click HERE for the full answer. The bottom line: Yes. The main issue is whether you qualify for the entire credit or a partial one.
Comments
Maryland Homestead Tax Credit (2007)
is this a one time deal? If you did it on line and still received an application w/assessment do you still need to do it again? Form indicates I qualify for $0 (zero) credit!
Posted by: ken morris | January 11, 2009 9:31 AM
It's not a one-time deal, and you're only supposed to have to apply once (whether online or by mail) -- unless you move, of course. If you're concerned, you might call the state Department of Assessments and Taxation to make sure your online registration took.
The $0 credit probably means that your newest assessed value is not a significant increase over your old assessed value, assuming there's any increase at all. If your jurisdiction sets its homestead credit at 4 percent, for instance, it's only when an annual increase is more than 4 percent that you end up with value you're not paying taxes on.
Posted by: Jamie Smith Hopkins | January 11, 2009 6:13 PM
Good answer.
Read the bill. It will show the phase in amount. If you have lived there longer than 1 full fiscal year without being reassessed you qualify for a homestead credit - Maximum increase of 4% a year.
Posted by: Dunn | January 12, 2009 2:58 PM