Some countries assist real property owners and renters by providing them with accessible tax-related benefits. One of these is the so-called Real Estate Tax Credit. Basically, a Real Estate Tax Credit provides some sort of assistance to people with low to moderate incomes who own or rent a certain residence. Generally, these tax credits are claimed even if the individual does not pay any income tax.
The Real Estate Tax Credit is one area of tax difference from place to place. In New York, for instance, household members who are younger than age 65 may obtain a Real Estate Tax Credit of up to $75. On the other hand, a $375 credit can be claimed if at least one member of the household is older than 65 years. If a persons tax credit is more than the taxes owed, then he or she can claim a refund. In Ontario, however, people under 65 years are entitled to a tax credit worth $250, while those who are over 65 years are entitled to a tax credit worth $625. It’s best to inquire with your local tax authority about the rules and regulations in your area because as stated earlier, a Real Estate Tax Credit may differ from one place to another.
A number of criteria need to be fulfilled in order to be qualified for such a tax credit. But then again, different places may have different criteria. In New York again as an example, a credit can be claimed only if an individuals gross income is under $18,000. Add to that the requirement that he/she must have occupied the same residential property for at least six months and must have been an official resident for the entire tax year. Also, the current market value of all his/her real property (such as land, houses, and buildings) must be $85,000 or less. In Ontario, of course, the conditions will then again vary.
Finally, if you have unclaimed credits from past years, it’s still possible to claim them. It’s important to contact your local tax authorities because claiming past credits usually has a deadline which you have to beat.