In the absence of federal stimulus checks, states have taken up the task of sending targeted relief to residents. Now stimulus checks or credits from states are also slowing. So, it is time for residents to make the most of any financial aid that the states usually offer. Maryland residents, for instance, can receive a significant amount of either a property or renter tax credit from Maryland annually.
Property Tax Credit From Maryland: What Is It?
People often overlook yearly tax credits that their states offer, and two such tax credits are the Maryland Homeowner’s Property Tax Credit and Maryland Renter’s Tax Credit.
The Maryland Homeowner’s Property Tax Credit offers tax credits to homeowners if the property taxes paid are more than the fixed percentage of the homeowner’s gross income. In other words, this credit puts a cap on the amount of property taxes that must be paid.
To qualify for the property tax credit from Maryland, you need to meet the following requirements:
- You must have a legal interest in the property.
- The property must be your principal residence, and you must have lived there for at least six months of the year, including July 1.
- The applicant’s net worth, excluding the value of the property or the qualified retirement savings or Individual Retirement Accounts, must be below $200,000.
- The combined gross income of the household must not be more than $60,000.
If you meet the above requirements, you can apply for the property tax credit from Maryland by Oct. 1, 2023. You can either apply online or download the paper application using this link.
Homeowners who have applied by April 15 will receive the credit directly on their tax bill. Those applying later but before the October deadline will get the balance credit in the form of a revised tax bill.
Visit this link for more information on the property and renter tax credit from Maryland.
Renters’ Tax Credit From Maryland: What Is It?
The Maryland Renters’ Tax Credit Program offers tax credits to low-income renters to help them offset the rising cost of rent in the state. This program is based on the reasoning that renters indirectly pay property taxes, and thus, should get similar benefits that homeowners do.
Eligible renters could get up to $1,000 per year to use toward their rent. Similar to the property tax credit, renters can either apply online or download the paper application using this link. The last date to apply is October 1.
To qualify for the renter tax credit from Maryland, you must be over 60 or 100% disabled. In addition to this, you also need to meet the income and rent threshold.
Even those below 60 can qualify for the renter tax credit, provided they have at least one dependent below 18 living with them. Also, they must not have received any federal or state housing subsidies or reside in public housing. Additionally, the applicant must meet the income criteria as well.
Visit this link for more information on the property and renters’ tax credit from Maryland.
This article originally appeared on ValueWalk
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