Property Tax Credit Claim (Circuit Breaker)

State

Missouri

Year

2018

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Varies with Taxes Due

Benefit Type

Circuit Breaker

Benefit

The benefit is a refundable credit distributed through the state's income tax. The amount of the benefit varies with both income and property tax paid or rent constituting property taxes paid. For 2018, the maximum benefit is $750 for renters and $1,100 for homeowners. Claimants with income below $14,300 are eligible for the maximum benefit. For claimants with income above $14,300, the benefit decreases 1/16th percent for each $300 increase in income and for every $25 decrease in property tax paid or rent constituting property taxes paid. Rent constituting property taxes is calculated at 20% of the gross rent paid by a claimant and spouse in the calendar year. Applicants must apply annually for the benefit using form MO-PTC by the due date for the federal income tax return.

How is Benefit Disbursed

Credit to the income tax bill

Eligible Property Type

Residential

Characteristics of Eligible Property

Only homesteads are eligible for this tax benefit. The homestead is the dwelling owned or rented by the claimant and up 5 acres of land surrounding. It may consist of part of a multi-dwelling or multipurpose building and part of the land upon which it is built. Mobile homes may be eligible for this benefit.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Renter

Veteran

Surviving Spouse

Other Criteria

Description of Eligibility Criteria

The claimant or their spouse must be (a) at least 65 years old on or before the last day of the calendar year; (b) a veteran of any branch of the armed forces of the United States or the state who became 100% disabled as a result of such service; (c) disabled; or (d) have reached the age of 60 on or before the last day of the calendar year and received surviving spouse Social Security benefits during the calendar year. The claimant or spouse must be a resident of Missouri for the entire year. For renters/part-year owners, total household income must be $27,500 or less. If married filing combined, total household income must be $29,500 or less. For claimants that owned and occupied the homestead for the entire year, total household income must be $30,000 or less. If married filing combined, total household income must be $34,000 or less. All income eligibility requirements apply to income earned in the year prior to filing for the credit.

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

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

Benefit is distributed by state through income tax bill.

Record ID

MO103_RR18

Footnotes

Income is defined as Missouri adjusted income and increased to reflect the following: social security and railroad retirement; veteran payments and benefits unless the claimant or spouse is a 100% disabled as a result of military service; all other public and private pensions and annuities; public relief, public assistance, and unemployment benefits received; SSI, TANF and/or child support payments received; non-business losses; wages, dividends, and interest; and rental income. Homeowner applicants may reduce income by $2,000, and by an additional $4,000 for the applicant's spouse residing at the same address. “Disabled” is defined as the inability to engage in any substantial gainful activity by reason of any physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of at least one year. A claimant is not required to be employed prior to such disability to qualify.

Sources

Mo. Rev. Stat. § 135.010 ~ § 135.030 (in effect for 2018)
Missouri Form MO-PTC property Tax Claim
[https://dor.mo.gov/forms/MO-PTC%20Instructions_2018.pdf Accessed 02/07/2019]
View Archived Source

Missouri Form MO-PTC Property Tax Credit Claim [http://dor.mo.gov/forms/MO-PTC%20Instructions_2017.pdf accessed 10/17/2018]
View Archived Source

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