Regular and Elderly Circuit Breaker (Schedule H)

District of Columbia

2019

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 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. For those under the age of 70, the size of the benefit is determined using two income brackets. For the lowest bracket, household income of $0 - $24,999, the tax credit equals 100% of property tax exceeding 3% of household gross income. For the highest bracket, household income of $25,000 - $51,000, the tax credit equals 100% of property tax exceeding 4% of household gross income. For those 70 or older, the credit is 100% of property taxes exceeding 3% adjusted gross income. For renters, the credit must be reduced by the amount of any rental supplement payments provided by 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. For tax year 2018 applications are filed by April 15, 2019.

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

Other Criteria

To be eligible, claimant must be an owner of a home in D.C., or a lessee or tenant paying rent on a home in D.C., during the entire calendar year preceding the year in which he files a claim for relief. The benefit can only be applied if it is a claimant's primary place of residence. For tax year 2018 filing in 2019, household gross income under the age of 70 cannot exceed $51,000. For those 70 or older, the adjusted gross income cannot exceed $62,600. For those Income thresholds will be adjusted annually. 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, right of occupancy payments which are exempt from D.C. taxation. A person claimed as a dependent on another person's tax return cannot receive these benefits unless they are 65 years of age or older.

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.

DC108_RR19