Homeowners and renters in Maryland who are struggling to pay bills during the pandemic may be eligible for tax credits through two programs — and the deadline to apply has just been extended.
The deadline for both the Homeowners Property Tax Credit and Renters’ Property Tax Credit programs has been extended from Oct. 1 to Oct. 31, Maryland Gov. Larry Hogan announced Wednesday.
“This is yet another step our administration is taking to ensure more of our citizens can remain safe and secure in their homes,” Hogan said in a statement. “Tens of thousands of Marylanders who have not yet applied may still be eligible for these tax credits, and now have an additional month to apply for this much-needed relief.”
The Homeowners’ Property Tax Credit Program sets a limit for how much property tax you owe based on your income. Homeowners with incomes up to $60,000 are eligible for the program. If you’ve already paid your property tax and you apply by the new deadline, you’ll receive a refund from your local county finance office. Another reason to apply? Many counties run their own additional homeowner credit programs; and if you’re approved for the state program, you’ll automatically receive the local credit.
The Renters’ Property Tax Credit Program provides relief for renters who spend a large portion of their income on rent and do not receive federal or state housing subsidies or live in public housing. If approved, renters could receive a check of up to $1,000.
On average, homeowners receive an average credit of $1,348 on their tax bill and renters receive an average direct payment of $414 through the two programs, according to the Maryland State Department of Assessments and Taxation. Overall, the state estimates the two tax credits save Marylanders a total of more than $65 million each year.
It could take between 30-90 days for the state to process your application; however, applications submitted online will be processed “significantly faster” than applications submitted through the mail.
The state is also encouraging homeowners to submit an application for the Homestead Tax Credit. If you’re approved, the Homestead Credit accrues over time by limiting the increase in taxable assessment each year to a fixed percentage. It’s also a one-time application without a specific filing deadline. Overall, the Homestead Credit provides nearly $20 billion in assessment relief per year, according to state officials.
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