Elderly Circuit Breaker

District of Columbia

2018

Benefit Varies with Income

Minimum Tax Amount Must be Paid

Circuit Breaker

The benefit is a refundable income tax credit equal to the amount by which real property taxes paid exceeds a percentage (3%) of their household gross income for that year. It can also be applied to 20% of rent paid if the rent paid constitutes a property tax. The credit shall not exceed a total of $1,025. The amount of the credit will be annually adjusted based on the Consumer Price Index. The credit must be reduced by the amount of any rental supplement payments, received by the claimant pursuant to the provisions Rental Housing Act of 1977. The credit may be used to reduce D.C. income or other property tax liabilities of the claimant before the remainder is refunded. If a claimant dies before receiving the benefit, the benefit will be applied to their estate.

Credit to the income tax bill

Residential

Eligible property is limited to the claimant's primary residence, whether owned or rented, and the surrounding land necessary for use as a home. It may include a multi-unit building or a multi-purpose building and a part of the land upon which it is located.

Age

Homeowner

Income Ceiling

Principal Residence

Renter

To be eligible, claimant must be an owner of record of a home in the District, or a lessee or tenant paying rent on a home in the District, during the entire calendar year preceding the year in which he or she files a claim for relief. The claimant must be 70 years of age or older and their gross income must be less than $61,900. Household gross income does not include gifts from a nongovernmental source, food stamps, or other food assistance provided by the government. Rent paid does not include advanced payments for another period, rental deposits, medical service or food provided by the landlord, nor does it include right of occupancy payments which are exempt from D.C. taxation.

Local government is unable to exercise an option

No local option regarding program features

Local government covers all of its tax loss

The credit is administered through the personal income tax.

DC109_RR18