What Is Homestead Credit?

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A homestead credit, only available in some states, is a property tax credit that reduces property taxes to qualifying individuals.

Qualifying

  • Residents of states offering a homestead credit qualify with moderate to low incomes. Some states automatically enroll residents, whereas other states require residents to apply.

Age

  • Some states have age requirements to receive the tax credit, and in some locations, senior citizens get additional homestead credit benefits.

Benefits

  • Taxes paid for housing expenses during the year are reimbursed in part or full to those who receive the homestead credit.

Misconceptions

  • Aside from homeowners, renters are eligible for the homestead credit.

Warning

  • A home or apartment must be a permanent residence, but dormitories and second homes do not qualify.

References

  • Photo Credit Image by Flickr.com, courtesy of Jeff Turner
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