Monday, March 14, 2011

Another new D.C. Homestead Deduction application

The District of Columbia Office of Tax and Revenue (OTR) has created a new Homestead and Senior Citizen/Disabled Property Tax Relief Application (Homestead Application). �

Effective May 2, 2011, the OTR will no longer accept any prior versions of the Homestead Application. The new form is only one page and does appear easier to complete than the prior two page application.� It is broken down in the following six sections:

  • Part 1 � Personal Information (name and social security number)

  • Part 2 � Property Information (address, lot and square)

  • Part 3 � Homestead Deduction (the actual application and questions regarding other properties)

  • Part 4 � Property Tax Relief for Seniors (at least one owner must be 65 or older with total household federal adjusted gross income less than $100,000)

  • Part 5 � Property Tax Relief for Disabled (at least one owner must be permanently and totally disabled or receiving certain disability payments with total household federal adjusted gross income less than $100,000)

  • Part 6 � Affidavit (the signature line)

D.C. Homestead Deduction Form (rev. 3/11)

The new Homestead Application can be found on the OTR website: Homestead Deduction/Reconfirmation Application*.� Detailed instructions in regards to the completion of the form are found on the second page.

Also, if a property ceases to qualify for the Homestead/Disabled/Senior Citizen benefits, the homeowner must provide written notice to the OTR within 30 days of the change in eligibility.� The Homestead Deduction Cancellation Form is also posted on the OTR website: Homestead Deduction Cancellation Form*. �

The Homestead discounts have not changed: The Homestead deduction reduces a real property's assessed value by $67,500 prior to computing the yearly tax liability while the senior citizen or disabled tax relief reduces the tax bill by 50 percent.

Here are a few more tips in regards to the Homestead:

  1. To be eligible for the Homestead Deduction, you must be domiciled in the District of Columbia.� The following actions will help prove that the District of Columbia is your permanent home:

  2. Obtaining a District of Columbia driver's license or identification card;

  3. Registering your motor vehicle in the District of Columbia;

  4. Registering and actively voting in the District of Columbia; and

  5. Filing District and Federal income tax returns from the property that is claimed as a principal residence.

A property CANNOT receive the Homestead Deduction if:

  1. It is held in an irrevocable trust, unless it is a special needs trust; or

  2. If the record owner is a corporation, LLC or other business entity (except a partnership in which all partners occupy the property as their principal residence).

For more information on the new Homestead Application please visit OTR's Taxpayer Service Center or send OTR an e-mail.�

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