WHAT IS THE PROPERTY TAX REDUCTION PROGRAM?
The Property Tax Reduction (Circuit Breaker) program reduces property taxes for qualified applicants, The amount of reduction is based on total household income for the previous calendar year. If you qualify, the property taxes on your home and up to one acre of land may be reduced by as much as $1,200.00. Solid waste, irrigation or other fees charged in some counties cannot be reduced by the Property Tax Reduction benefits.
WHO QUALIFIES?
You may qualify for property tax reduction if you meet the following requirements.
You owned and lived in a house or mobile home in Idaho that was your primary residence (You may qualify if you lived in a care facility or nursing home. Contact your county assessor for information.);
Your total household income for the prior year was $21,290 or less after deduction:
Medical expenses not reimbursed by Medicare or other insurance
Business and farm losses
Capital gains, and
You were in one or more of the following categories as of January 1:
Age 65 or older
Widow(er) of any age
Blind
Fatherless or motherless child under 18 years of age
Former prisoner of war/hostage
Veteran with at least 10% service connected disability, or receiving VA pension for a nonservice-connected disability. You may qualify if your disability application is being processed or appealed.
HOW TO APPLY?
1. Contact your county assessor. The office is listed under County Offices in your telephone directory.
2. Complete an application. If you need help, the assessor's staff will assist you.
Please note: You can apply for your property tax reduction between January 1 and April 15. To receive this benefit, you must apply and qualify each year. It is not renewed automatically.
You will be required to show proof of your income, medical expenses and any disability when you file your application. If you are missing some of this information, complete as much of the form as possible, sign and return it to the assessor's office by the April 15 deadline. Attach a note of explanation if you have estimated any part of your income. You will be allowed a reasonable amount of time to complete the form after the filing deadline.
If your application is approved, your property tax reduction will appear on the tax notice sent by November. (No tax notice will be sent if the total tax is covered by the Property Tax Reduction Program.)
All recipients of the property tax reduction benefit automatically receive the Homeowner's Exemption, which reduces the taxable value of a home (excluding land) by 50% or $50,000, whichever is less.
DOCUMENTATION?
You must provide the assessor's office with the following documents to show your income and expenses. (Bring original documents or copies if you apply in person; send copies if you mail your application.)
If you file a tax return, provide the following:
Federal income tax return
Proof of medical expenses;
Provide a copy of federal Schedule A, if you file it with your tax return.
If you do not file Schedule A, provide the following:
Prescription drug records from your pharmacy;
Receipts for other medical expenses you paid in the
prior year that were not reimbursed by Medicare or other insurance company.
Social Security/Railroad Retirement 1099 forms
Any other documents showing income not reported on your tax return.
If you do not file a tax return, provide the following:
All of the above that apply to you;
All 1099 forms you received;
Proof of expenses to be deducted from business or rental property income;
In any Case:
If disabled, provide certification of disability from Social Security or other agency (or show proof that your claim is being processed or appealed); If VA disabled provide certification from VA annually.
If blind, provide certification from your doctor.
INCOME GUIDELINES:
When you complete your application, you must report all household income received in the prior year by:
Yourself and your spouse
You must include:
Wages
Interest (including bank, escrow, inheritance, etc., even if nontaxable)
Dividends
Business, farm and rental profits
All other IRS reportable income (except capital gains)
Social security/SSI (Supplemental Security Income)
Railroad Retirement
Unemployment/workers compensation
Pensions and annuities (except qualified rollovers)
Military retirement benefits
VA pensions and compensation (VA Pension of 40% and higher for service connected disability is exempt, need proof of rating)
li>Department of Health and Welfare payments (Aid for Dependent Children and housing assistance)
Child support/alimony
Strike benefits
"Loss of earnings" insurance payments
Disability income from any source
Payments from an IRA
You may deduct the following items from your prior year household income:
Medical/dental and related expenses (including eyeglasses and prescriptions drugs) not reimbursed by insurance
Medical insurance premiums (except Medicare)
Personal funeral expenses, including prepaid funeral expenses and premiums on funeral insurance, not reimbursed, for claimant and claimant's spouse only.
