An Early Reminder: Deadline for Filing the Homestead Tax Credit & Military Exemption in the Iowa City Area

There are many tax breaks associated with owning your own home. One of the lesser known ones is the Homestead Tax Credit. This is a small tax break, usually $115 - $130 on a home in the Iowa City area. What the credit means is that your property taxes are reduced by the amount of the credit every year. It's not a refund. This is purely a tax break that reduces your property tax liability. It may not seem like a lot, but it's certainly enough to fill up your car with gas a few times in the year ... (Although depending on your car a couple of times may be an exaggeration these days). This is a tax credit that is only available to home owners using their homes as a primary residence. It cannot be claimed for rental properties.

This is a real easy credit to apply for. The only caveat is the deadline for getting the application in. The deadline is July 1st. Any applications received after that date will not be applied until the following year when property taxes are re-calculated. (The tax year runs from July 1 to June 30 in Johnson County). You only need apply one time and the credit will be applied to your property taxes every year as long as you live in the home.

Another lesser known credit is the Military Exemption. As the name suggests this is a tax credit for servicemen and women and includes past and present members of the Armed Forces. The Military Exemption Form on the Johnson County website shows eligibility requirements for this credit. The deadline for application is the same as the Homestead Tax Credit. It's also only available for home owners using the home as their primary residence. I don't have a dollar amount for that as it's calculated differently than the Homestead Tax Credit. You'll find information about how both of these tax credits are calculated on the Iowa State Association of County Auditors website.

To apply for either the Military Exemption or the Homestead Tax Credit, all you need to do is print off the forms from the Johnson County website and either mail or drop them off at the Johnson County Assessor's Office, 913 S Dubuque St, Iowa City (Before July 1st of course!)

Originally posted @ ichomesforsale.com