Note: the name "renter's credit" is misleading. This is a refundable credit designed to provide property tax relief to low-income homeowners (who pay property tax directly) AND renters (who pay property tax indirectly through rent paid to landlords who pay property taxes.)
Total household income must be less than $18,000.
For this purpose, total household includes some kinds of non-taxable income.
It also includes income from other household members whose income may not be on the tax return. You will need to ask the taxpayer to provide that additional information on Form IT-214.
Renters are eligible ONLY if both of the following are true:
1) they pay rent to a landlord who is not totally exempt from property taxes (this means that tenants of municipal housing authorities are NOT eligible)
2) their rent is less than $450 per month AFTER adjustments for utilities that may be included in rent. (TaxWise will calculate the adjusted rent based on information provided about rent and utilities included.)
Homeowners are eligible ONLY if both of the following are true:
1) they pay property taxes
2) the value of their home is less than $85,000
You may be entitled to this credit if you meet the conditions below for tax year 2010.
How much is the credit?
How do I claim this credit?
For more information, see the Instructions for Form IT-214