I live in Indiana and bought a house in 2006, I applied for Homestead Credit.?

Question

What is this? and will it be benifical when filling my 2006 taxes?

Answer 1

Once your cake is eaten it is gone. Saving money by not paying taxes does not permit you to save money you did not pay. Help out your state, pay the tax next time and have US-A give it back to you. If you need help during the year, your state and city government will come to your aid. The federal government will only come is they decide that what happen is a disaster.

Answer 2

The Homestead Credit is a tax benefit for renters and homeowners with low or moderate incomes. It is designed to lessen the impact of rent and property taxes. Qualifying persons can get back some or all of their state taxes withheld during the year. Those who do not have earnings, or whose earnings were too small to have taxes withheld, can get extra cash back from the State.

A recent Department of Revenue study estimates that in 2001, only 43% of eligible households applied for and received the Homestead Credit
Who can get the Homestead Credit?
The main criteria for eligibility include the following:

Rented or owned a home - and lived in the home - in Wisconsin during 2006. The home may be a house, an apartment, a rented room, a mobile home, a farm, or a nursing home room. The home may not be exempt from property taxes;
Legal resident of Wisconsin for all of 2006;
Household income less than $24,500 for 2006. The income limit may be lower, depending on how much was paid in rent or property taxes;
At least 18 years old on December 31, 2006;
Cannot be claimed as a dependent on anyone else's federal income tax return for 2006 (unless claimant is at least 62 years old).

What counts as household income?
Household income includes all income reportable for tax purposes, plus certain nontaxable income, less a deduction of $250 for dependents who lived with the claimant for at least six months of 2006. Examples of nontaxable income counted in ‘household income’ include Social Security, Unemployment Compensation, child support, IRA contributions, and nontaxable scholarships.

How much can individuals and families get back from the Homestead Credit?
The amount of the credit depends on income and on the amount of rent or property taxes. In general, the credit is higher when income is lower and/or when rent or property taxes are higher. The maximum Homestead Credit is $1160.

Does the Homestead Credit affect eligibility for welfare? Do welfare benefits affect eligibility for the Homestead Credit?
The Homestead Credit - and other tax credits - do not count as income in determining eligibility for benefits such as W-2, Medicaid, Food Stamps, SSI, or public or subsidized housing.
Cash welfare benefits can reduce the Homestead Credit. The benefits that affect the Homestead Credit include Wisconsin Works (W-2), county relief, and Kinship Care. Countable rent or property taxes are reduced by 1/12 for each month in which cash welfare benefits were received during 2006. Schedule H includes information on how to handle this.

Answer 3

State homestead exemptions or credits generally reduce your property taxes. Property taxes are deductible if you itemize your deductions. If your property taxes are lowered, you'll obviously have a smaller deduction for them.

Answer 4

You can get a rebate if it is your only house and if you have lived there more than a year, that is how it is here in the state of maine...good luck...every penny helps!