Free Homeowners - Maryland


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2009 HOMEOWNERS' PROPERTY TAX CREDIT
Instructions and Application Form HTC-60
State of Maryland
Department of Assessments and Taxation www.dat.state.md.us GENERAL INSTRUCTIONS
The State of Maryland provides a credit for the real property tax bill for homeowners of all ages who qualify on the basis of gross household income. Since eligibility for the program is based upon income, it may be convenient for you to complete this form at the same time you are preparing your federal and Maryland income tax returns. Applications are processed by the Tax Credit Section of the Maryland Department of Assessments and Taxation.


ELIGIBILITY

Filing Deadline - September 1, 2009

A new application must be filed every year if you wish to be considered for a tax credit. The following table will help you determine if it is worthwhile to apply. If the actual property taxes on your home (based on no more than $300,000 of assessment) exceed the "Tax Limit" amount shown on the table for your 2008 gross household income, you may be eligible for a credit and are urged to file this application. Actual taxes eligible for this credit do not include fixed metropolitan charges which may appear on your tax bill for such services as sewer, water, and improvement repayments, and do not include taxes for excess land acreage or other buildings, or portions of buildings used for business purposes. The chart is a guide only, and the exact amount of your income and property tax will be used to determine your eligibility. If you submit an application, the State will determine your eligibility. 2008 Combined Gross Household Income Before Deductions $1 - 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 20,000 21,000 22,000 23,000 24,000 25,000 26,000 27,000 28,000 29,000 30,000 and up to a maximum of $60,000

If you do not understand the table, or if you have any further questions about whether the tax limit for your specific income level will qualify you for a property tax credit,then call the Homeowners' Tax Credit Program at the telephone number shown on the next page under section "Information and Assistance."

OTHER REQUIREMENTS BEFORE FILING
You must satisfy four basic legal requirements before your eligibility according to income can be considered: 1. The dwelling for which application is being made must be your principal residence, where you reside or expect to reside for more than 6 months of the tax year, including July 1, 2009 unless you are unable to do so for reasons of illness or your need of special care or unless you just recently purchased your home. An individual who permits pursuant to a court order or separation agreement a spouse, former spouse or children of that person's family to reside in a dwelling in which the individual has a legal interest has met the residency requirement. A homeowner may claim credit for only one principal residence. 2. You must have legal interest in the property. Land installment sales contract purchasers, holders of a life estate, and beneficiaries of certain trusts have sufficient legal interest. 3. Your net worth, excluding the value of the property for which credit application is being made and the cash value of IRAs or qualified retirement savings plans, must not exceed $200,000 as of December 31, 2008. 4. Your combined gross household income cannot exceed $60,000. If the four requirements above are met, the amount of tax credit due, if any, will be calculated on the basis of the gross household income for calendar year 2008.

COUNTY SUPPLEMENTAL TAX CREDITS
In addition to the State of Maryland's Homeowners' Tax Credit, county supplemental tax credits are available to eligible homeowners in Anne Arundel Co., Baltimore Co., Calvert Co., Caroline Co., Carroll Co., Charles Co., Frederick Co., Garrett Co., Harford Co., Howard Co., Kent Co., Montgomery Co., and the City of Gaithersburg, the City of Rockville, the City of Greenbelt and the City of Hyattsville. The county supplemental tax credits are administered by the State of Maryland Homeowners' Tax Credit Program. To apply for the State tax credit and/or county supplemental tax credit, applicants are only required to file this application form (Form HTC-60). Any person submitting this property tax credit application will receive one of the following: d a credit directly on your July property tax bill if the application, which is properly completed and which is not subjected to audit, is received before May 1, 2009 or d a tax credit certificate to be used towards payment of the tax bill or for a refund if the bill has already been paid; or d a written letter of denial stating the reason for ineligibility Please note that the chart on this page is used only to determine eligibility for the State tax credit. Some applicants may be eligible for a county credit even though they may be ineligible for a State credit based on income. To determine eligibility for county supplemental tax credits please call 410-767-4433 (Baltimore Metro Area) or 1-800-944-7403 (toll free).

Tax Limit $ 0 40 80 120 160 225 290 355 420 510 600 690 780 870 960 1,050 1,140 1,230 1,320 1,410 1,500 1,590 1,680

HOW CREDITS ARE GRANTED

LIMITATIONS
The lesser of $300,000 of assessed value or the total assessed value minus any Homestead Credit, shall be used for calculating those taxes eligible for credit. Property owners with large tracts of land will have the credit limited to curtilage, which is that amount of taxes on the land necessary for the dwelling and does not include excess acreage. The credit shall be limited to that portion of the dwelling used only for the applicant's residential purposes. Any metropolitan or fixed charges which may appear on the bill are not taxes eligible for credit.

IMPORTANT INFORMATION FOR 2009
Please note that if your application is filed after May 1, 2009 you should not expect to receive any tax credit directly on the July 1, 2009 tax bill. You are advised to pay the tax bill as shown if you wish to receive the discount for early payment offered by Baltimore City and some counties.

*

*For each additional $1,000 of income add $90 to $1,680 to find the amount that your tax must exceed.The gross household income cannot exceed $60,000 in order to be eligible for a tax credit.



INCOME DEFINED
For purposes of the property tax credit program, it is emphasized that the applicant must report total income, which means the combined gross household income before any deductions are taken. Income information must be reported for the resident homeowner(s), spouse or co-owner and all other occupants of the dwelling unless such other occupants can be claimed as dependents on the applicant's 2008 federal income tax return or unless they are paying reasonable fixed charges such as rent or room and board. Payments toward household expenses by other occupants should be reported as room and board. If the other occupants of the home who are not dependents for Internal Revenue Service purposes are not charged room and board or rent by you, you must include their total gross incomes. Your spouse and all owners on the deed who reside in the dwelling must report their gross income and not room and board. Income from all sources must be reported whether or not included in the definitions of gross income for federal or State tax purposes. Nontaxable retirement benefits, such as Social Security, must be reported as income for the tax credit program. An applicant must report all monies he or she receives each year. Deductions for IRAs, Keoghs, or Deferred Compensation may not be used to reduce the amount of gross income reported. Losses from business, rental or other endeavors may not be used to reduce the amount of gross income reported. The full amount of an inheritance is income. All gifts in excess of $300 and expenses paid on your behalf by others must be reported as income.

TIME AND PLACE FOR FILING
The deadline for filing an application is September 1, 2009. However, if you submit a properly completed tax credit application before May 1, 2009, and that application is not subjected to an audit by the Department, then you will receive any credit due you as a credit appearing directly on your tax bill or as a credit certificate issued at approximately the same time that your property tax bill is sent to you. A properly completed application means that the applicant answered all questions; signed the form; furnished copies of the entire federal income tax return, schedules and forms, and copies of the necessary Social Security form (SSA-1099) and Railroad Retirement Verification or Rate letter; and responded within a reasonable time period to any subsequent inquiries made by the Department. Mail your completed application and a copy of your federal income tax return and schedules to the address shown in the "Return To" box on the application. Applicants who cannot provide a copy of their Federal Tax Return with their application before the deadline are advised to file a tax credit application without the copy of the Federal return. Applicants who file just before the deadline should consider sending the application by certified mail to have proof of a timely filing.

SPECIFIC INSTRUCTIONS
FOR CERTAIN LINE ITEMS ON FORM HTC-60 LINE 11 - PROPERTY ACCOUNT NO.:
With the exception of Baltimore City, every County uses the property account number to identify the property. In Baltimore City, the Ward/ Section/Block and Lot number is used instead to identify the property. In either case, you can obtain the appropriate identification number from your property tax bill or assessment notice.

LINE 13 - PRINCIPAL PLACE OF RESIDENCE:
You may apply for a tax credit for only the one dwelling which is your principal and actual residence for more than 6 months of the tax year, including July 1, 2009. One exception is for persons who purchased their home after July 1, 2009.

LINE 14 - NONDEPENDENT RESIDENTS
Every applicant must answer this question and list the name(s) of any non-dependent resident(s) in the home. If none, write NONE and not N/A.

INCOME VERIFICATION
In individual cases, an applicant may later be requested to submit additional verification or other evidence of income in order to substantiate the application for the property tax credit. An application may be subjected to audit at a later date. If an applicant reports insufficient monies to meet basic living expenses, then additional information will be requested.

LINE 15 - REASONABLE FIXED CHARGES FOR ROOM AND BOARD
If you report receiving room and board from nondependent occupants of your household, the amount must be "reasonable." If you receive no monies from these occupants, you must write the word NONE and report their gross income in item 18, Column 3 (All Others). Room and board, rent, or household expenses paid can be reported for nondependent occupants but not for spouses and resident co-owners who must report their gross income along with that of the applicant.

COPY OF COMPLETE FEDERAL RETURN
If you file a federal income tax return for 2008, you must furnish a photocopy of your complete federal return, including all accompanying schedules and other forms, when submitting this application. If income was derived from a partnership or corporation, a copy of the partnership return (Form 1065, including Schedule K-1) and/or a copy of the corporate return (Form 1120 or 1120S, including Schedule K-1) must also be included. If separate returns were filed by spouses, then a copy of each must be included. A copy of the federal and not the Maryland return is required because necessary income information for the tax credit calculation is only available from the federal return and schedules. Failure to forward a complete and exact copy of the federal income tax return (if you are required to file) will delay the processing of your application.

INFORMATION AND ASSISTANCE

LINE 18 - SOURCES OF INCOME
You will note that any IRA income must be reported on a separate line from other pensions and annuities. If you have a pension or IRA "rollover" attach a copy of the Form 1099-R and proof of the deposit into another tax deferred account.

Baltimore Metropolitan Area 410-767-4433 All Other Areas 1-800-944-7403

LINE 20- PERJURY OATH/SOCIAL SECURITY RELEASE:
By signing the form, the applicant is attesting under the penalties of perjury as to the accuracy of the information reported and that the four basic legal requirements for filing have been met. In addition, the signature also authorizes the Social Security Administration, the Income Maintenance Administration, Unemployment Insurance, the State Department of Human Resources and Credit Bureaus to release to the Department of Assessments and Taxation any and all information concerning the income or benefits received by the applicant.

PRIVACY AND STATE DATA SYSTEM SECURITY NOTICE The principal purpose for which this information is sought is to determine your eligibility for a tax credit. Failure to provide this information will result in a denial of your application. Some of the information requested would be considered a "Personal Record" as defined in State Government Article, 10-624 consequently, you have the statutory right to inspect your file and to file a written request to correct or amend any information you believe to be inaccurate or incomplete. Additionally, it is unlawful for any officer or employee of the state or any political subdivision to divulge any income particulars set forth in the application or any tax return filed except in accordance with judicial legislative order. However, this information is available to officers of the state, county or municipality in their official capacity and to taxing officials of any other state, or the federal government, as provided by statute.

FORM

HTC-60

1.

a Mr. a Mrs. a Ms.

Please Read Instructions Before Completing This Application Answer Every Question Or Mark It None
Last Name First Name and Middle Initial 2. Your Social Security Number 3. Your Birth Date 4. Daytime Telephone No.

5.

Full Name of Spouse or Co-Owner living in the property

8.

Property Address (Number and Street, or Rural Route)

9.

Mailing Address if Different from Above (Attach explanation why)

10. 11.

Marital Status

a Single

a Married

Furnish the Following from Your Tax Bill or Assessment Notice

_________________________________

Property Account No. (except Balto. City)

Applicant's Birth Date Social Security #1 Social Security #2

MO

/

YR

a STATUS a HARMLESS a USE
(

a Separated

Homeowners' Property Tax Credit Application

TURN OVER TO OTHER SIDE TO COMPLETE AND SIGN THE APPLICATION

a

a Divorced
Ward

Department of Assessments and Taxation

6.

a Widowed

State of Maryland

2009
( )

His/Her Social Security Number

7. His/Her Birth Date

City, Town, or Post Office

County

Zip Code

City, Town, or Post Office

County

Zip Code

If so, date ____________________ )

Sect

Block

Lot

Incorporated Town, if Any

For Baltimore City Only

L
Name Code

DO NOT WRITE BELOW - OFFICE USE ONLY

Deed

Co. Code

Mun. Code

Account Number

Applicant's Name

Premise Address

Md Entry

HOLD

Total Assessment 2009/2010

Appl. # ________________________________

Property Description

Homesite & Dwelling

Homestead Credit

HTC09

PLEASE COMPLETE OTHER SIDE OF APPLICATION FIRST
12a. Do you own any other dwelling or other real estate in the State of Maryland or elsewhere? 12 b. Do you own or operate a business?

If yes, please attach to this application a separate list of where the properties are located, their property account numbers and their use.

a Yes

a No

a Yes

a No



13. Will you reside in the property on which you are applying for the tax credit on July 1, 2009 and for more than 6 months thereafter?

a Yes
)

If no, explain: _______________________________________________________________________________________________________________________________________ 14. You MUST list the name of every resident over 18 years of age in your household who is not a co-owner and who cannot be claimed as your dependent for IRS purposes. (If more space is needed, attach a separate list). If none, write NONE and not N/A. Income or room and board must be reported for any nondependent filing an income tax return from this address. 15. Report here the amount of reasonable fixed charges for room and board, rent or expenses paid by the persons listed in item 14. If none is paid, write NONE and then list the total gross incomes of such residents in item 18, Column 3 (All Others). 16. Is any portion of the property for which this application is being made used for: a.) farming ( You must answer this question

Name $ per

(week/month) b.) a business and/or c.) a rental purpose?

17. a.) Total number of apartments in the property, including vacant apts. ___________________________________________________ b.) Amount of rent received during 2008 from tenants: Gross __________________________ Net __________________________ (1) APPLICANT (2) SPOUSE OR RESIDENT CO-OWNER

19. Did or will you, and/or your spouse, file a Federal Income Tax Return for 2008? a Yes a No If yes, a copy of your return (and if married filing separately, a copy of your spouse's return) with all accompanying schedules must be submitted with this application. 18. SOURCES OF INCOME IN 2008 When a document is requested, please DO NOT send the original, send a copy. If no Social Security, Railroad Retirement or other pension benefits were received, then you must enter zero (0) in the appropriate space. (3) ALL OTHERS Wages, Salary, Tips, Bonuses, Commissions, Fees ................................................................ Dividends (& nontaxable distributions) .................................................................................. Rental Income (Net) .............................................................................................................. Interest (taxable and non-taxable) ........................................................................................ Capital Gains (Includes non-taxed gains) .............................................................................. Business Income (Net) .......................................................................................................... Room & Board (see instructions for line 15) .......................................................................... Unemployment Insurance; Workers' Compensation (Circle which) ........................................ Alimony; Support Money; Public Assistance Grants (Circle which) ........................................ Social Security (Attach copy of 2008 Form SSA-1099); S.S.I. Benefits (Circle which) .......... Railroad Retirement (Attach copy of 2008 Verification or Rate letter) .............................. Other Federal Pensions (Not including VA Benefits ) per year ................................................ Pensions (If a rollover, see instructions for Line 18) .............................................................. Veteran's Benefits per year .................................................................................................... Annuities (If a rollover, see instructions for Line 18) .............................................................. IRAs (If a rollover, see instructions for Line 18) ...................................................................... Deferred Compensation (Attach a W-2 Statement) ............................................................ Gifts over $300; Expenses Paid by Others; Inheritances (Circle which).................................. All other income (Indicate Source)......................................................................................

a Yes

a No

Relationship

a No

If yes, then circle which use (a, b, c) and indicate what percentage of the dwelling is used for your own residential purposes: ______________________________%

OFFICE USE ONLY

TOTAL INCOME, CALENDAR YEAR 2008

20. I declare under the penalties of perjury, pursuant to Sec. 1-201 of the Maryland Tax-Property Code Ann., that this application (including any accompanying forms and statements) has been examined by me and the information contained herein, to the best of my knowledge and belief, is true, correct and complete, that I have reported all monies received, that I have a legal interest in this property, that this dwelling will be my principal residence for the prescribed period, and that my net worth is less than $200,000 excluding the value of the subject dwelling and homesite, IRAs and qualified retirement savings plans. I understand that the Department may request at a later date additional information to verify the statements reported on this form, and that independent verifications of the information reported may be made. Further, I hereby authorize the Social Security Administration, Comptroller of the Treasury, Internal Revenue Service, the Income Maintenance Administration, Unemployment Insurance, the State Department of Human Resources, and Credit Bureaus to release to the Department of Assessments and Taxation any and all information concerning the income or benefits received.



Applicant's Signature

Date

Spouse's or Resident Co-owner's Signature

Name of Preparer Other Than Applicant

Date

Telephone

RETURN TO

FOR INFORMATION CALL

Department of Assessments and Taxation Homeowners' Tax Credit Program 301 W. Preston Street 9th Floor, Room 900 Baltimore, Maryland 21201
AT8-60H

Baltimore Metropolitan Area 410-767-4433 All Other Areas 1-800-944-7403

THIS APPLICATION IS NOT OPEN TO PUBLIC INSPECTION - FILING DEADLINE IS September 1, 2009