Tax Credit for Renters

Posted on: March 26th, 2010 by

CPA Rockville - IRS SubscriptionMany states, including Maryland, offer a “Renter’s Credit” or “Homestead Property Tax Credit” when you do your income taxes.  This credit is typically based on the difference between  your income and property taxes.  You ask how this could possibly work?  As a renter, though, you do not typically pay property taxes directly, but your landlord does, and those taxes are figured into the monthly rent he/she charges.  So, if you make sure that you hang onto any receipts showing you paid your rent so you can provide documentation if the IRS requests it.  Keep copies of your cancelled checks or ask for receipts from your landlord every month.

When filing for this tax credit, however, it is a good idea to consult with a CPA in Rockville to verify if you do in fact qualify and how much of a deduction you can take.  It can be a bit confusing.



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