The September 1st deadline has arrived for homeowners and renters to file applications for Maryland tax credits based on property taxes they have paid. The Homeowner’s Property Tax Credit Program and the Renters’ Tax Credit Program alleviate some of the tax burden for lower income Maryland residents who meet program requirements.
Tax relief for Maryland homeowners
The State of Maryland instituted the Homeowner’s Property Tax Credit Program as a way to limit the amount of property taxes a homeowner could face. If the property taxes are larger than a stated percentage of the taxpayer’s gross income, the homeowner is eligible for the credit. Last year, about 46,000 homeowners were approved and they received, on average, $1300 back.
To qualify for the Homeowner’s Property Tax Credit Program, a homeowner must have a net worth of less than $200,000, excluding the value of the subject property and any qualified retirement savings or Individual Retirement Accounts. Combined gross household income cannot be greater than $60,000. There are a number of exclusions and limitations to the program as well.
Tax credit relief for renters
Recognizing that renters indirectly pay property taxes, the State of Maryland extended the benefit to them as well. Under the Renters’ Tax Credit Program, qualifying renters also receive a credit. Last year, the program benefited over 7,600 renters and they received an average of $322.
Under the Renter’s Tax Credits Program, renters can receive a refund of up to $1,000 in the form of a check from the State of Maryland. To qualify, the renter must have a legitimate lease interest and be legally responsible for paying rent on the property. Eligibility is determined based on combined household income before deductions, including retirement benefits. If the portion of rent attributable to property taxes exceeds a specified amount related to income, then in some cases the renter qualifies for the refund. The income and monthly rent limits vary based on the age of the renter and the number of household members.
Other Maryland tax credits available
The Homeowner’s Property Tax Credit and the Renter’s Tax Credit are just two of the many tax credits that Maryland taxpayers often overlook. The state offers many credits that can apply in specific situations, including a long-term care insurance credit, neighborhood stabilization credit, and credit based on income taxes paid to other states.
The tax savings offered in many cases make it worth the time and effort to have a tax professional examine your situation to determine whether you meet eligibility requirements.
Complete and up-to-date tax advice in Maryland
Tax laws at both the state and the federal level change often. Not keeping up with changes can cost individuals and businesses in over-payment, and even fines and penalties for non-compliance. The expert Maryland tax lawyers at Rosenberg Martin Greenberg stay on top of the current tax laws and credit programs for you. To discuss your taxes and potential tax credits, call today for a consultation.
Additional “Property Tax Credits” Resources
- Maryland Department of Assessments & Taxation, Homeowners’ Property Tax Credit Program, http://dat.maryland.gov/realproperty/Pages/Homeowners%27-Property-Tax-Credit-Program.aspx
- Maryland Department of Assessments & Taxation, Renter’s Tax Credits, http://dat.maryland.gov/realproperty/Pages/Renters%27-Tax-Credits.aspx
- Comptroller of Maryland, Tax Credits and Deductions for Individual Taxpayers, http://taxes.marylandtaxes.com/Individual_Taxes/General_Information/Tax_Credits_and_Deductions/