Instructions For Form 502cr - Personal Income Tax Credits

IMPORTANT NOTICE ABOUT A STATE OF MARYLAND

HOMEOWNERS’ PROPERTY TAX CREDIT PROGRAM

Under Maryland law, you may be eligible for a substantial credit on the property tax bill issued on your home, based

upon your gross household income. This program is available to homeowners of all ages and the credit is calculated

solely on the basis of gross income. The application form is not provided here in this income tax booklet because the

credits are issued as a deduction from the homeowner’s July property tax bill. The property tax credit application

forms are processed separately by the State Department of Assessments and Taxation.

Use the chart printed below to see if it would be worthwhile for you to submit a Homeowners’ Tax Credit applica-

tion. If the actual property taxes on your home (based on no more than $150,000 of full market value) exceed the “Tax

Limit” amount shown on the table below for your household income level, you may be eligible for a credit and are

urged to file an application. The table is printed for illustrative purposes, and therefore, the income amounts are list-

ed in increments of $1,000. For purposes of this program, the applicant must report total income, which means the

combined gross household income before any deductions are taken. Nontaxable income, such as Social Security,

Railroad Retirement or Veterans’ benefits, also must be reported as income for the tax credit program.

2002 COMBINED

GROSS HOUSEHOLD INCOME

BEFORE DEDUCTIONS

TAX LIMIT

BEFORE DEDUCTIONS

TAX LIMIT

BEFORE DEDUCTIONS

TAX LIMIT

$0- 4,000

$ 0

13,000

285

22,000

1,020

5,000

14,000

350

23,000

1,110

6,000

15,000

415

24,000

1,200

7,000

16,000

480

25,000

1,290

8,000

17,000

570

26,000

1,380

9,000

18,000

660

27,000

1,470

10,000

130

19,000

750

28,000

1,560

11,000

175

20,000

840

29,000

1,650

12,000

220

21,000

930

30,000

1,740

and up

*For each additional $1,000 of income add $90 to $1,740 to find the amount that your tax must exceed.

If you think you might qualify on the basis of your household income, there are certain other legal requirements

which must be met. Due to space restrictions, not all of the other special limitations can be listed here in this notice.

The purpose of this notice is simply to advise you of the availability of the program and to suggest that you inquire

further if you think you qualify on the basis of the income chart provided above.

To obtain a Homeowners’ Tax Credit application form or to receive further information about your eligibility for

the program, you should telephone 410-767-4433 in the Baltimore metropolitan area or 1-800-944-7403 (toll free)

for those living elsewhere in Maryland. The application form explains the various program requirements in detail.

The deadline for filing a Homeowners’ Tax Credit application is generally September 1, 2003.

RENTERS’ TAX CREDIT PROGRAM

The State of Maryland also makes available a Renters’ Tax Credit of up to $600 a year for renters age 60

and over or those 100% disabled if they qualify on the basis of income. Renters under age 60 who have a dependent

child may be eligible for a credit if certain separate income requirements are met. To obtain a Renters’ Tax Credit

application form or to receive further information about the program, you may telephone 410-767-4433 in the

Baltimore metropolitan area or 1-800-944-7403 (toll free) for those living elsewhere in Maryland. The filing deadline

for the Renters’ Program is September 1, 2003.

REAL PROPERTY TAX EXEMPTIONS FOR 100% DISABLED VETERANS AND BLIND PERSONS

There is a complete exemption from real property taxes on the dwelling house owned by disabled veterans with

a 100% service connected permanent disability or by their surviving spouses. The State also allows an exemption

on the first $15,000 of valuation on the dwelling house owned by legally blind persons. For further information

about either exemption, please telephone 410-767-4433 in the Baltimore area or 1-800-944-7403 (toll free) in other

areas of Maryland.

Instructions For Form 502cr - Personal Income Tax Credits - 2002 Page 4

Related Articles

Related forms

Related Categories