3-04-2024 11:16pm

Certain Renters in Maryland Can Get $1000.00 Direct Deposit Tax Credit

D Cherry Editor

This article has been reprinted from one stop.md.gov

The Renters' Tax Credit Program provides property tax credits for renters who meet certain requirements. The plan was modeled after and designed to be similar in principle to the Homeowners' Tax Credit Program, which is known to many as the Circuit Breaker Program. The concept rests on the reasoning that renters indirectly pay property taxes as part of their rent and thus should have some protection, as do homeowners.

Open from Feb 05, 2024 at 12:00 am EST to Oct 01, 2024 at 11:59 pm EDT

30 days - 90 days

Approval Time

30 - 60 min

Completion Time

$0.00

Application Fee

The plan is based upon the relationship between rent and income. If the portion of rent attributable to the assumed property taxes exceeds a fixed amount in relation to income, the renter can, under specified conditions, receive a credit of as much as $1,000. The credit is paid as a direct check from the State of Maryland.

HOW A RENTED DWELLING IS DEFINED

The rented dwelling may be an apartment in an individual house or any type of apartment building, duplex, co-op, condominium, house trailer, or mobile home pad. The dwelling must be the principal residence in Maryland and the renter must live there at least six months of the year. You are only eligible to receive a tax credit for rent paid in the State of Maryland.

The applicant must have a bona fide leasehold interest in the property and be legally responsible for the rent. If the dwelling that is rented is owned by a tax exempt, charitable organization or is exempt in any way from property taxation, a tax credit cannot be granted.

HOW TO DETERMINE IF YOU MAY BE ELIGIBLE

COMBINED INCOMES: Credits are calculated according to total income, meaning all combined gross household income before deductions. This includes income from all sources, whether or not taxable for federal and state income tax purposes. It also includes Social Security as well as all other retirement benefits.

AGE 60 OR OVER OR 100% DISABLED

If you are age 60 or over or 100% disabled, use the chart below to determine if it is worthwhile for you to file an application.

CHART 1

Find your approximate 2022 total gross household income in Column A.
If your monthly rent is more than the figure in Column B across from your income, you may be eligible and are encouraged to apply.

Column A Total Income	Column B Monthly Rent
$1 - 10,000	117
20,000	423
25,000	576
33,000	800
39,000	1,000
43,000	1,100
46,000	1,200
49,000	1,300
53,000	1,400
56,000	1,500
59,000	1,600
62,000	1,700
66,000	1,800
69,000	1,900
73,000	2,000

The rent in Chart 1 assumes that you pay all your own utilities separate from the monthly rent. If the rent includes gas, electric and heat, you may need to have as much as 18% higher monthly rent to qualify for a credit.

Trailer park residents are advised to submit an application and allow this office to determine eligibility.

Chart 1 is a guide only, and the exact amount of your income and rent will be used to determine your eligibility. If you submit an application, the State will determine your eligibility.

UNDER 60 YEARS OF AGE

If you are a renter under the age of 60 who, during 2022, had at least one dependent under the age of 18 living with you AND you did not receive federal or state housing subsidies or reside in public housing AND the combined income of all residents of your dwelling is below the following guidelines, you are encouraged to apply.

CHART 2

Persons in Household (Include Applicant)	2022 Gross Income Limit
2	$17,420
3	$21,960
4	$26,500
5	$31,040
6	$35,580
7	$40,120
8	$44,660
9	$49,200

Note: If you think you qualify based on the income limits on the above chart, you are encouraged to apply. The State will determine your eligibility using the above chart and the formula that compares rent and income (See Chart 1).

Renters have until October 1 of the year in which the credit is sought to apply.

Please be advised that applications submitted by mail will take longer to process than applications submitted online. Please be certain your computer has the free Adobe Reader, or other PDF reader software available to access the application. Once completed, applications should be mailed to:

State Department of Assessments & TaxationRenters' Tax Credit ProgramP.O.Box 49006Baltimore, MD 21297

Please do not email any tax credit applications to the Department containing personal information, such as social security numbers and/or income tax returns. Instead, please mail your completed application and supporting documents to the Department, so your personal information remains confidential.
The deadline for filing an application is October 1, 2024. A properly completed application means that all questions are answered, the form is signed, copies of the entire federal income tax return, schedules and forms, necessary Social Security form (SSA-1099), Railroad Retirement Verification or rate letter are all included and applicant has provided responses to any subsequent inquiries made by the Department in a reasonable timeframe.

To find out more information or to complete your application online please visit this website: click here or go to :

https://onestop.md.gov/forms/renters-tax-credit-application-form-rtc-20….

Instructions

Review the steps - read carefully

A new application must be filed every year if you wish to be considered for a tax credit. Applicant must satisfy all five (5) legal requirements listed below before eligibility can be considered:
Applicant must have a bona fide leasehold interest in the property and be legally responsible for the rent; and
First time applicants, and those who have moved during the previous year, must submit a copy of their lease(s), rental agreement, cancelled checks, money order receipts, or other proof of rent paid. Other applicants must submit a copy upon request; and
The principal residence must be in Maryland and where the applicant resided for at least six (6) months in 2023; and
The dwelling may be any type of rented residence or a mobile home pad on which the residence rests, but it may not include any unit rented from a public housing authority or from an exempt organization; and
Applicant, spouse and/or co-tenant(s) must have a combined net worth of less than $200,000 as of December 31, 2023.
Applicant may later be requested to submit additional information to verify what was reported on the application. This request may include a statement of living expenses when it appears that the applicant has reported insufficient means to pay the rent and other living expenses.