January 11, 2010

Filing Texas Homestead Exemptions- Reminder

Just a reminder to file your Texas Homestead Exemption form if you closed on your home by December 31, 2009.  I like to remind all my clients in January because this is usually when everyone begins to focus on their taxes and getting together the items needed to file them. Also, remember to check with your tax preparer to see if you qualify for the $8000.00 tax credit offered to homebuyers.

You have until the end of April to actually file, but why wait until the last minute.

It's good to do it as soon as possible so when you get your new Tax Assessment that first week of May, all your information will be correct.  There are many companies that will charge you a pretty penny to file the exemption for you.  DO NOT PAY ANYONE TO FILE ANYTHING!!  IT'S FREE!! If you have any questions about doing so please call me, I will gladly help you and even fill it out for you if necessary!

You can get the form online at www.HCAD.org or call or email me and I will send it to you.

These are some general questions and answers about Homestead Exemptions; let me know if you have any more questions.

Q: As a homeowner, do I get a tax break from property taxes?
A: You may apply for homestead exemptions on your principal residence. Homestead exemptions remove part of your home's value from taxation, so they lower taxes. For example, you home is appraised at $50,000, and you qualify for a $15,000 exemption, you will pay taxes on the home as if it was worth on $35,000.

Q: Do all homes qualify for homestead exemptions?
A: No, only a homeowner's principal residence qualifies. To quality, a home must meet the definition of a residence homestead: The home's owner must be an individual (not a corporation or other business entity) and use the home as his or her principal residence on January 1 of the tax year. If you are over 65, the January 1 ownership and residency are not required.

Q: What is a homestead?
A: A homestead can be a separate structure, condominium or a mobile home located on owned or leased land, as long as the individual living in the home owns it. A homestead can include up to 20 acres, if the land is used as a yard or for another purpose related to the residential use of the homestead.

Q: How do I get a homestead exemption?
A: You must file an Application for Residential Homestead Exemption with the county appraisal district between January 1 and April 30 of the tax year - up to one year after you pay your taxes. During the year, if you turn 65 or become disabled, you must apply for the 65 or older or disabled exemption no later than one year from the qualification date. Once you receive an exemption, you do not need to reapply unless the chief appraiser sends you a new application. In that case, you must file the new application. If you should move or your qualifications end, you must inform the appraisal district in writing before the next May 1.

Q: What homestead exemptions are available?
A: There are several types of exemption you may receive.

• School taxes: All residence homestead owners may receive a $15,000 homestead exemption from their home's value for school taxes.
• County taxes: If a county collects a special tax for for-to-market roads or flood control, a residence homestead owner may receive a $3,000 exemption for this tax. If the county grants an optional exemption for homeowner’s age 65 or older or disabled, the owners will receive only the local-option exemption.
• Age 65 or older and disabled exemptions: Over 65 and/or disabled residence homestead owners may qualify for a $10,000 homestead exemption for school taxes, in addition to the $15,000 exemption for all homeowners. If the owner qualifies for both the $10,000 for over 65 and the $10,000 exemption for disabled homeowners, the owner must choose one of the other for school taxes. The owner cannot receive both exemptions.
• Optional percentage exemptions: Any taxing unit- including a city, county, school, or special district- may offer an exemption of up to 20 percent of a home's value. But, no matter what the percentage is, the amount of an optional exemption cannot be less than $5,000. Each taxing unit decides if it will offer the exemption and at what percentage. This percentage exemption is added to any other home exemption for which an owner qualifies. The taxing unit must decide before July 1 of the tax year to offer this exemption.
• Option over 65 or disabled exemptions: Any taxing unit may offer an additional exemption of at least $3,000 for taxpayer’s age 65 or older and/or disabled.

Q: What if I miss the deadline for filing a homestead exemption?
A: You may file for a homestead exemption up to one year after the delinquency date - usually February 1. If you are 65 or older or disabled, you must apply for the exemption no later than one year from your 65th birthday or one year from the delinquency date, whichever is later.

Q: May I continue to receive the residence homestead exemption on my home if I temporarily move away?
A: If you temporarily move away from your home, you may continue to receive the exemption if you do not establish a principal residence elsewhere, you intend to return to the home, and you are away less than two years. You may continue to receive the exemption if you do not occupy the residence for more than two years if you are in military service or live in a facility providing services related to health, infirmity or aging from the two-year period.