Regular and Elderly Circuit Breaker (Schedule H)

State

District of Columbia

Year

2022

Variations in Receipt of Benefit

Benefit Varies with Income

Minimum Tax Amount Must be Paid

Benefit Type

Circuit Breaker

Benefit

The benefit is a refundable income tax credit equal to the amount by which real property taxes paid exceed a percentage of household gross income for the year. It can also be applied to 20% of rent paid if rent paid constitutes a property tax. The maximum credit is $1,225 for tax year 2021. The amount of the credit is annually adjusted based on the Consumer Price Index. For those under the age of 70, the size of the benefit is determined using three income brackets. For the lowest bracket, household income of $0 - $24,999, the tax credit equals 100% of property tax exceeding 3% of adjusted gross income. For the highest bracket, household income of $52,000 - $55,000, the tax credit equals 100% of property tax exceeding 5% of adjusted gross income. For those age 70 or older, the tax credit equals 100% of the property tax that exceeds 3% of adjusted gross income. Rent constituting property taxes is deemed to be 20% of rent paid. For renters, the credit is reduced by the amount of any rental supplement payments provided by the 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

Residential

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 part of the land upon which it is located.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Principal Residence

Renter

Other Criteria

Description of Eligibility Criteria

To be eligible, the claimant must be an owner, or a lessee or tenant paying rent on a home in D.C. during the entire calendar year preceding the year in which they file a claim for relief. The benefit can only be applied if it is a claimant's primary place of residence. For tax year 2021 filing in 2022, the maximum adjusted gross income is $56,200 for those under the age of 70. For those 70 or older, the maximum adjusted gross income is $76,700. Income thresholds are 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, or right of occupancy payments that 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 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.

Record ID

DC108_RR22

Footnotes

Applications can be filed for the previous three years. For tax year 2021, applications must be filed by 18 April 2022.

Sources

D.C. Code § 47-1806.06 (in effect for 2022)
District of Columbia Office of Tax and Revenue, Homeowner and Renter Property Tax Credit Form, Schedule H (2021 tax year for filing in 2022)
[https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2021_SCHEDULE%20H.pdf Accessed 12/01/2023]
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