Frequently Asked Questions - Homestead Preservation Credit
Filing
- What is a Homestead Preservation Credit (HPC)?
- How do I file for the credit?
- When can I file for the credit?
- When is my application due?
- Can I file a previous year’s claim?
- What documentation is required?
- Can I file for the Missouri Property Tax Credit Claim (MO-PTC) and the Homestead Preservation Credit?
- If my spouse lives in a nursing home and I live at the homestead residence, can we file for the credit?
Qualifications and Eligibility
- Who qualifies for the credit?
- What is the income limit?
- Can I get credit for a home I own but do not occupy?
- What if my home sits on 10 acres of land?
- What if I just purchased my home?
Questions for Specific Situations
- Am I eligible for the credit if the property is owned jointly with children or owned jointly by unmarried individuals?
- What if I paid my real estate property taxes late the last three years?
- What if I own more than one residence?
- What if improvements were made to my property that total more than 5 percent of the homestead value?
- What happens if my spouse dies during the application year?
- If I have property that is held in a trust, am I still eligible to apply for the Homestead Preservation Credit?
- What if I sell my property before the credit is paid?
Other Questions
- When will I receive my credit?
- Can I withdraw my Homestead Preservation Credit Application?
- When will I be notified of my application being received and/or if I am eligible for the credit?
- Will I need to file a Homestead Preservation Credit Application every year?
- What amount on my real estate tax receipt should I use for filing my Homestead application?
Filing
What is a Homestead Preservation Credit (HPC)?
Certain individuals are eligible to receive a credit if their real estate property taxes increase 2.5 percent in a non-reassessment year (even numbered year) or 5 percent in a reassessment year (odd numbered year). The credit would be for the amount that exceeds the 2.5 or 5 percent increase in taxes. The act requires a legislative appropriation to fund the credit. If no money is appropriated, no credits will be issued. The credit will not be applied to your property tax every year. You must apply for the credit every year and meet the 2.5 or 5 percent increase for each year in which you file.
How do I file for the credit?
You must complete Form HPC
and mail the application form and all supporting documents to the Department of Revenue at: Missouri Department of Revenue, PO Box 478, Jefferson City, MO 65105-0478.
Forms may also be requested by calling toll-free 1-800-877-6881.
When can I file my return?
You can file your application from April 1 through October 15, 2008.
When is my application due?
The application and required attachments must be postmarked by October 15, 2008. If an application and/or required attachments are postmarked after October 15, 2008, the credit will be denied.
Can I file a previous year’s claim?
No, you must file for the Homestead Preservation Credit during the current year and the credit will be applied to your real estate property tax bill the following year. For example, you will file the Homestead Preservation Credit application in 2008 and the credit will be applied to your 2009 real estate property tax bill. Once the applications have been processed and an appropriation amount is approved, the credit amount available for the following year is final and a claim cannot be filed for the previous year.
What documentation is required?
The following documentation is required (as applicable):
- Verification of your 100 percent disability if applicable:
- either a letter from the Veterans Administration stating you are 100 percent disabled as a result of military service, letter from the Social Security Administration, and/or Form SSA-1099;
- 2005, 2006, and 2007 paid real estate tax receipts and/or paid personal property tax receipts for mobile home;
- Form 948, Assessor's Certification for 2006 and 2007 if property is more than 5 acres or it is a mobile home;
- 2007 Federal Income Tax Return, pages 1 and 2, only if you did not file a 2007 Missouri Individual Income Tax Return.
Can I file for the Missouri Property Tax Credit Claim (MO-PTC) and the Homestead Preservation Credit?
You can only receive one of the credits. You cannot file for the MO-PTC for the year prior to the Homestead Preservation Credit. For example, if you received a 2007 MO-PTC, you are not eligible to receive a 2008 Homestead Preservation Credit.
You should determine which tax credit program is more beneficial to you before you file for either credit. Click here for the Property Tax Credit Qualification Chart and/or the Homestead Preservation Credit Qualification Chart.
If my spouse lives in a nursing home and I live at the homestead residence, can we file for the credit?
As long as one taxpayer lives in the home, meets the qualification, and their Federal Adjusted Gross Income does not exceed $77,323, you can file for the credit. Please refer to the question "How do I file for the credit?" If you file for a 2007 Property Tax Credit, you will not be eligible for the 2008 Homestead Preservation Credit.
Qualifications and Eligibility
Who qualifies for the credit?
Individuals who meet one of the following qualifications:
- If married, one spouse is 65 years of age or older as of January 1, 2007, and the other spouse is at least 60 years of age as of January 1, 2007;
- If single, you are 65 years of age or older as of January 1, 2007; or
- If you or your spouse are 100 percent disabled.
What is the income limit?
If single or married filing jointly, your Federal Adjusted Gross Income is $77,323 or less.
Can I file the Homestead Preservation Credit for a home I own but do not occupy?
No, you must occupy the home to qualify for the credit.
What if my home sits on 10 acres of land?
You can get a credit for up to five acres on which your home sits. If your home or farm has more than 5 acres or you own a mobile home, attach Form 948, Assessor's Certification for 2006 and 2007. Your county assessor will complete these forms.
What if I just purchased my home?
You must have owned the property and paid real estate taxes on the property in 2005, 2006, and 2007.
Questions for Specific Situations
Am I eligible for the credit if the property is owned jointly with children or owned jointly by unmarried individuals?
Property jointly owned with unmarried individuals is eligible if all property owners meet the qualifications and their combined Federal Adjusted Gross Income does not exceed $77,323. If any of the individuals do not meet the requirements, then all of the property owners are ineligible.
What if I paid my real estate property taxes late the last three years?
You are still eligible for the credit if you paid your real estate property taxes late the last three years. Penalties and interest are not included in the credit.
What if I own more than one residence?
You can only file the credit for your primary residence.
What if improvements were made to my property that total more than 5 percent of the homestead value?
If improvements made during the calendar year total more than 5 percent of the appraised value, you do not qualify for the credit, unless they were made to accommodate a disabled individual.
What happens if my spouse dies during the application year?
As long as one taxpayer lives in the home, meets the qualifications, and the Federal Adjusted Gross Income does not exceed $77,323, the application will still be eligible for the credit. Please refer to the question "How do I file for the credit?"
If I have property that is held in a trust, am I still eligible to apply for the Homestead Preservation Credit?
Yes, the trust income must be included with the Federal Adjusted Gross Income on line 1 of the application.
What if I sell my property before the credit is paid?
You must be the owner of the property at the time the credit is applied. The credit does not transfer to another property.
Other Questions
When will I receive my credit?
If you filed the Homestead Preservation Credit Application in 2008, the credit will be applied to your 2009 real estate tax bill. The process is explained below:
Once all applications have been processed, the department will request from the legislature the amount needed to issue the full requested credit for each applicant. The budget bills containing the appropriation are generally not signed by the Governor until late June. On July 31, 2009, the credit limit is set based on the signed budget. On August 31, 2009, the department sends to county collectors a list of eligible applicants and the amount of credit applicable to each. The county collector will then place the credit toward the applicant's 2009 real estate tax bill.
Can I withdraw my Homestead Preservation Credit Application?
Yes, the request to withdraw your application must be in writing and submitted to the department before the credit is applied to your account by the County Collector. The monies are sent in October of the following year after the application period has ended. For example: If you applied in 2008, you would need to contact the Department by October 2009 to have your application withdrawn. The request can be mailed, faxed, or e-mailed to the Department of Revenue.
- Mailing address: Missouri Department of Revenue, P.O. Box 2200, Jefferson City, MO 65105-2200
- Fax number: 573-751-2195 ATTN: Homestead Preservation Credit Unit
- E-mail address: homestead@dor.mo.gov
When will I be notified of my application being received and/or if I am eligible for the credit?
At this time, a notification will not be sent to eligible applicants letting them know they are eligible. The department will only issue notices if information is missing or if an application is ineligible. If you would like to confirm your application was received and/or the status of your application, please e-mail us at homestead@dor.mo.gov or call 573-751-3505.
For applicants that applied in 2007, the actual amount of your credit will not be available until August 1, 2008. For applicants filing in 2008, the actual amount of your credit will not be available until August 1, 2009. We will need to know the year that you applied so we can confirm your amount of credit either by phone or e-mail.
Will I need to file a Homestead Preservation Credit Application every year?
Yes, you will need to file an application every year and meet all qualifications.
What amount on my real estate tax receipt should I use for filing my Homestead Preservation Credit Application?
Special Assessments, penalties, and interest should not be included. Homestead Preservation Credits should be included.
The following are two examples of paid property tax receipts that satisfy the Homestead Preservation Credit's application requirements. Since your county's property tax receipt may look different than the examples below, you should carefully examine your receipt to determine the appropriate entry for Box 6b of the Homestead Preservation Credit Application.
Your receipt should show the property taxes you paid as well as the credit amount received, if applicable. If you received a Homestead Preservation Credit in 2006, you should add the total tax paid and the credit received to determine your entry for Box 6b.
Example #1: This example shows that the HPC Credit was used to reduce the tax for each item that is included on the bill. It was not subtracted at the end from the total tax. Here, an applicant would add the total tax paid and the HPC Credit to determine what should be entered in Box 6 of the application.
$169.73 (HPC Credit) + $1,451.71 (Total Tax) = $1,621.44 (Enter in Box 6).
Example #2: This example includes a box titled, "Current Tax." If your property tax receipt shows an entry for "Current Tax," this figure should be entered in Box 6 of the application. (The "prepaid" figure may include additional credits, not only the Homestead Preservation Credit.
$2,133.86 (Enter in Box 6)
Other counties may show this differently on their tax receipts. If you are unsure, please contact your county collector's office.
