A Closer Look at Property Tax Exemptions You May Qualify For
The mortgage interest deduction is not the only exemption you may qualify for. There are many different exemptions available to homeowners, including some that you might not know about! In this article, I am going to take a closer look at property tax exemptions and how they can help reduce your taxes.
Property Tax Exemptions
First I want to talk about the homestead exemption. This tax break is available in nearly every state, and it allows homeowners who live in their own homes (not renters) to reduce their property taxes by $15,000 or so – this amount varies by state, so be sure you check your local laws. If you live in Texas, make sure to check https://www.propertytaxloanpros.com/texas-property-tax-exemptions/ for more information about Texas regulations. Another common type of exemption is an agricultural tax exemption. If you have a farm that makes more than 50% of its income from farming activities, then chances are good that your home qualifies for some sort of agricultural tax credit or another!
Local exemptions
Some jurisdictions offer additional property tax exemptions, and these can vary from place to place. In college towns across the U.S., homeowners who have children or grandchildren attending local colleges often receive a break on their taxes thanks to tuition-related exemptions!
This makes sense – it is nice for parents with kids in college if they don’t have to pay as much money in property taxes so that those funds are available for educational expenses instead of being used on stupid things like fresh paint at home…
State exemptions
States take a lot of different approaches to provide property tax assistance for homeowners – some offer their own homestead exemption while others piggyback off of the federal one (which is available in all 50 states). There is even an option out there known as a “circuit breaker” that helps reduce your taxes if you have a certain amount of income and can prove financial hardship.
State exemptions can also include veterans’ exemptions, senior citizen/disabled person’s tax relief, and other special designations. It’s very important to know what your state offers so that you can take advantage of the exemptions available to you.
Federal exemptions
That’s right – if you live in your own home, then the government still wants its cut of what it is owed. And yet there are several programs out there (like the aforementioned mortgage interest deduction) that can help reduce your taxable income and save you some cash!
The Internal Revenue Service provides an exemption for up-to-date veterans who use their benefits towards housing.
This break also applies to surviving spouses or dependents. Additionally, certain disabled persons may qualify for a similar credit provided by the U.S. Department of Veterans Affairs (VA). Federal exemptions can also include student loan debt cancellation as well as principal payments made on a first or second home. Just note that if you have a home-based business, then there could be some issues with claiming many of the above exemptions – it’s best to get in touch with your tax professional before filing so they can help you figure out which deductions apply and which ones don’t.
How to apply for an exemption
If you want to claim a tuition-related property tax exemption, then it’s probably best to contact your state government directly rather than dealing with your local county or city authority – they simply don’t have all of that information so contacting another agency source will yield better results.
Just keep in mind that not everyone will qualify for an exemption! Each program has its own set of rules so be sure to read up on them before filing anything official. If you get turned down, then try again next year (and maybe sometime after that) until you hear back from someone who says yes! And hopefully one day we can live in a world where taxes aren’t such a bad thing…
Ways you can show that you qualify for an exemption
There are several ways you can prove that you meet the necessary criteria in order to claim an exemption. For example, if your home is owned by a disabled person or senior citizen who receives benefits through the federal government – like Supplemental Security Income (SSI) for seniors over 65 years of age – then they may be able to receive tax relief on their property taxes.
The same goes for veterans who have received help from the U.S. Department of Veterans Affairs (VA), and even surviving spouses with taxable incomes under $11,490 per year ($12,590 jointly). Additionally, certain low-income homeowners whose income falls below certain thresholds might also qualify for reduced rates so it’s best to check what exemptions apply based on where you live.
The application process can also vary based on the type of exemption you are applying for. Each municipality has its own set of rules in terms of who qualifies and how much they will receive, so it’s best to read up before filing anything official. If you get turned down once or twice then try again next year (and maybe after that) until someone says yes! But hopefully one day we can live in a world where taxes aren’t such a bad thing…
Things to keep in mind when applying for an exemption
As we said earlier, the application process is different in every municipality and even varies based on the type of exemption you are applying for. When you apply the first time around, consider these things before filing:
• Make sure you meet the income requirements – which can vary depending on where you live and what type of exemption(s) you want.
• Find out exactly how much each exemption is worth so that when it comes time to file, you know what numbers to use and where/how to fill everything out!
• Most importantly, don’t forget to check and double-check everything before sending it in!
If you were able to get through the above information, congratulations!
You have a head start on understanding property tax exemptions and how they work. However, if you need any additional help or guidance in applying for an exemption, try to think of someone you know who might be able to help – like a lawyer, tax professional, or financial planner.
