on Apr 20th, 2010Indiana homeowners should be on the lookout for pink sheet that verifies Homestead Tax Deduction eligibility
Homeowners in some Indiana counties may already have received the pretty pink sheet of paper known as the homestead deduction verification form that will be included with 2010 tax bills. Those who haven’t should be on the lookout. By 2013 Indiana homeowners must verify their eligibility for the homestead tax deduction or risk losing the significant savings it provides. The Indiana government Homestead Verification Fact Sheet provides the 5 Ws of verification requirements.
Who?
Every individual or married couple currently claiming the homestead deduction will receive the form. (Some counties may mail the form to every taxpayer, even those not claiming the homestead deduction.)
What?
The pink form included with tax bills.
When?
The homestead verification form will be mailed with 2010, 2011 and 2012 tax bills and must be completed at least once by January 1, 2013.
Where?
Individuals or married couples claiming the homestead deduction must complete the form and return it to the county per the instructions included on the form. The form is not required to be returned in person.
Why?
Individuals or married couples claiming the deduction must complete this form to verify eligibility and to provide identification numbers (the last five digits of both the driver’s license and social security numbers), which will be
used to populate a secure homestead database and prevent homestead fraud.
Q. What happens if I do not complete the form?
A. Your homestead can be removed beginning with the 2012-pay-2013 property tax bills if you do not complete the form by January 1, 2013. You must complete the homestead verification form at least once in either 2010, 2011 or 2012. If you have not completed the form after the 2012 tax bills are mailed, you will receive a final notification letter from the county auditor requesting verification and identification numbers.
A standard homestead deduction is worth about $300 in taxes. For example, on the average, an owner of a $100,000 home with a homestead deduction would pay about $1,200 a year in taxes, but without the deduction the homeowner would pay $1,500 in taxes.
The standard homestead deduction is worth $45,000 in assessed value. A home with a $100,000 assessed value would then have taxes calculated on an assessed value of $55,000. The homestead deduction also allows a taxpayer to receive a special supplemental deduction, valued at 25 to 35 percent.
Additional information regarding the homestead verification form is available
at http://www.in.gov/dlgf/8455.htm.