Homeowners and renters may be missing out on millions of dollars in tax relief. AARP Foundation Property Tax-Aide is a free program that helps eligible homeowners and renters apply for property tax relief.
Maryland
You may be eligible to receive money back
AARP Foundation Property Tax-Aide is...
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Maryland Program Overview
Homeowners' Property Tax Credit Program (HTC-1)
The Homeowners' Property Tax Credit (HTC-1) 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.
Eligibility
- 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
Application Deadline
Homeowners who file and qualify by April 15 will receive the credit directly on their tax bill. Persons who file later up until the October1 deadline will receive any credit due in the form of a revised tax bill. Applicants filing after April 15 are advised not to delay payment of the property tax bill until receipt of the credit if they wish to receive the discount for early payment offered in some subdivisions. A new application must be filed every year if the applicant wishes to be considered for a tax credit.
Required Documentation
- Photocopy of 2020 tax return
Maryland Renters’ Property Tax Credit (RTC-1)
The Renters’ Property Tax Credit (RTC-1) provides a direct check payment of up to $1,000 a year for renters who paid rent in the State of Maryland and who meet certain eligibility requirements.
Eligibility
- The rented dwelling may be an apartment in an individual house or any type of apartment building, duplex, co-op, condominium, house trailer, or mobile home pad. The dwelling must be the principal residence in Maryland and the renter must live there at least six months of the year. You are only eligible to receive a tax credit for rent paid in the State of Maryland
- If you are age 60 or over or 100% disabled, you are encouraged to apply if your monthly rent and total gross household income meets certain guidelines. If the portion of rent attributable to the assumed property taxes exceeds a fixed amount in relation to income, the renter can, under specified conditions, receive a credit of as much as $1,000
- If you are a renter under the age of 60 who had at least one dependent under the age of 18 living with you AND you did not receive federal or state housing subsidies or reside in public housing AND the combined income of all residents of your dwelling is below certain guidelines, you are encouraged to apply
Application Deadline
Renters have until October 1 of the year in which the credit is sought to apply, but it is advantageous to file as early as possible.
Required Documentation
- Photocopy of 2020 tax return