District of Columbia
Variations in Receipt of Benefit
Benefit Varies with Income
Minimum Tax Amount Must be Paid
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.
How is Benefit Disbursed
Credit to the income tax bill
Eligible Property Type
Characteristics of Eligible Property
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.
Description of Eligibility Criteria
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 $62,600. 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 Option in Adoption of Program
Local government is unable to exercise an option
Local Option Regarding Program Features
No local option regarding program features
State Funding for Local Tax Loss
Local government covers all of its tax loss
Description of State Funding for Tax Loss
The credit is administered through the personal income tax.
[https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2018%20Schedule%20H.pdf accessed 10/30/2020]
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