Iowans will be expecting various tax credits this 2023. This will bring relief to homeowners in Iowa. Iowa property tax credits 2023 are as follows: Homestead Tax Credit, Family Farm Tax Credit, Elderly Tax Credit, and Military Tax Credits according to Iowa.Gov.
How to Be Eligible For Property Tax Credits 2023?
Homestead Tax Credit
Originally established to promote home ownership and equalize tax levy on the first $4,850 of the original value.
Eligibility
- Property homeowners must own and occupy the property on July 1 of each year
- Declare residency in Iowa for income tax purposes
- Occupy the property for at least six months annually.
Family Farm Tax Credit
The Family Farm tax credit provides a credit for any school fund over $5.40 per $1,000 of assessed value.
Eligibility
To be eligible for this credit,
- The land must be used for agricultural purposes on 10 acres or more or lands fewer than 10 acres.
- The owner or designated person must also be actively engaged in farming the land.
- Filing requirements include submitting a claim with the assessor by November 1, with subsequent claims not necessary if ownership and the designated person’s farming activities remain unchanged.
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Elderly Tax Credit
This tax credit was originally introduced to support disabled veterans in becoming homeowners. It provides a credit equal to 100% of the actual tax levy.
Eligibility
- Eligible veterans include those with a permanent service-connected disability rating of 100% or a permanent and total disability rating based on individual unemployability paid at the 100% disability rate.
- Veterans must own and occupy the property as a homestead on July 1 of each year.
- Declare residency in Iowa for income tax purposes, and occupy the property for at least six months annually.
- Surviving spouses of disabled veterans receiving DIC payments or as beneficiaries of the estate of a veteran who received the credit may also qualify.
- Filing requirements include submitting a claim by July 1, along with a current Benefits Paid letter and a DD214.
Military Tax Credit
This tax credit provides exemptions for property owned by qualified veterans. The amount of exemption varies.
Eligibility
- Veterans must own the property on July 1 of each claim year.
- Filing requirements include submitting a claim with the local assessor by July 1, with subsequent claims not necessary on the same property.
Iowa Property Tax Credits 2023
Iowans may be eligible for various property tax credits. The Iowa tax credits 2023 include Homestead, Family Farm, Elderly, and Military credits. If you are a property owner in Iowa, be sure to check eligibility for each credit and file your claims.
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