Colorado Senior Housing Tax Credit

[ffemt161]

Not sure how to answer the question in TurboTax. 

Qualifying question for the Senior Housing Credit. 

Was your primary residence exempt from property tax as allowed under section 39-3-203 of the Colorado Revised Statutes (commonly know as the Senior Property Tax Exemption or Senior Homestead Exemption)? Options are Yes or No. Skipping to answer gives an error. 

I'm a senior, a renter and do not pay property tax on my apartment. Could it be that I answered a question incorrectly earlier within TurboTax?  

[MinhT1]

You have to be over 65, have 2022 AGI of $75,000 or less and not claimed a homestead property exemption to claim the Colorado Senior Housing Tax credit.

As a renter, you are not eligible and have to answer NO to the question.

Please read this document for more information.

[ffemt161]

When I answer "No" TurboTax gives the credit. Hence the confusion. 

Age is over 65 and AGI is less than 75,000.

[ThomasM125]

You are answering no to the question of whether the propery is exempt from tax, so then the assumption is that property tax is being paid so then you are getting the credit. Your initial question was did you answer a question wrong to be in this section to begin with, and that is a "yes". You need to review your state program and when you find the questions regarding the senior housing credit, change your response to indicate that you are not eligible. You will see an option to review your state return when you are done making your entries or when you go to the federal return and then back to the state return.

[ThomasM125]

You are answering no to the question of whether the propery is exempt from tax, so then the assumption is that property tax is being paid so then you are getting the credit. Your initial question was did you answer a question wrong to be in this section to begin with, and that is a "yes". You need to review your state program and when you find the questions regarding the senior housing credit, change your response to indicate that you are not eligible. You will see an option to review your state return when you are done making your entries or when you go to the federal return and then back to the state return.

[ffemt161]

I'm unable to find the incorrect response in Step-by-Step that led me down this path. I've checked both Federal and State several times and the only question is the one from the original post. Maybe you could suggest a form to check. With Form 104CR if I check "Yes" then the credit doesn't apply. Although the question is "Was your primary residence exempt"... as I said that doesn't seem to even be applicable for a renter. 

[MaryK4]

You will want to go to the Colorado state summary and select Other Situations then Property Tax Rebate.  The question about the property being exempt from property tax means that there is no tax on the property- like churches, nonprofit buildings etc.  If you have a landlord that pays property tax and you pay rent you will qualify for this credit depending on your income.  @ffemt161 

The Property Tax/Rent/Heat Credit rebate is available to low-income elderly and disabled Colorado residents who meet certain age and income requirements. They must also have had property tax, rent and/or heat expenses for the year.
 

[ffemt161]

I checked those areas and when I do the review I get the error message below. If I check Yes and there is no change to the refund and if I check no and there is a 1000.00 refund.

Again. Over 65, live in an independent living center/apartment( don't pay property tax) and income is under the AGI limit. I've seen answers both ways in this thread. 

. 

[AliciaP1]

You need to answer No because you did not already get a Homestead Property Exemption.  You qualify for the Senior Housing Credit if you are over 65 and your AGI is less than or equal to $75,000.  You are showing a refund because you should!  This credit does not represent the Property Tax Rebate.

Per the Colorado General Assembly:

The act creates a refundable income tax credit (credit) that is available for the income tax year commencing on January 1, 2022, for a qualifying senior, which means a resident individual who:

• Is 65 years of age or older at the end of 2022;
• Has federal adjusted gross income (AGI) that is less than or equal to $75,000; and
• Has not claimed a homestead property tax exemption for the 2022 property tax year.

The amount of the credit is $1,000 for a qualifying senior with federal AGI that is $25,000 or less. For every $500 of AGI above $25,000, the amount of the credit is reduced by $10. In the case of 2 taxpayers who share the same primary residence and who may legally file a joint return but actually file separate returns, both taxpayers may claim the credit, but the maximum credit for each taxpayer is $500 and, for every $500 of adjusted gross income above $25,000, the amount of the credit is reduced by $5. Notwithstanding the income-based reductions in the allowable credit amount, a taxpayer who also qualifies for a property tax and rent assistance grant or heat assistance grant during calendar year 2022 is eligible to receive the full credit.

@ffemt161 

[jmfa]

So, does "exempt from property tax" mean the same as "Senior Homestead Exemption"?  The amount of the homestead exemption is a small fraction of the total property tax.  Therefore, the home is NOT exempt from property tax.  Correct or not?

[TeresaM]

They are two different programs and if you have the Senior Homestead Exemption, then you will not be eligible for the Senior Housing Income Tax Credit for tax year 2022.

Was your primary residence exempt from property tax as allowed under section 39-3-204 of the Colorado Revised Statutes (commonly known as the Senior Property Tax Exemption, Senior Homestead Exemption or Disabled Veteran Exemption) for the property tax year beginning January 1, 2022? 

• The exemption should appear on your property tax statement from your county assessor. 
• You may have been approved for the exemption by applying in a prior year. 
• This exemption is generally allowed if one owner of a home is 65 years old as of January 1, and has occupied the home as a primary residence for at least 10 consecutive years.
  
  If so then you are not eligible for the Senior Housing Income Tax Credit.

[jmfa]

Sorry, but this does not answer my question.  I have no idea if "my primary residence exempt from property tax as allowed under section 39-3-204 of the Colorado Revised Statutes".  My property tax bill shows "senior homestead exemption" of about $600, but I still owe over $4000 in property tax.  If it was truly exempt from property tax, I would owe $0.  That sounds like a better deal.  What is referred to as an "exemption", should really be called a rebate or credit, if this makes sense.  So, I still don't know what the difference is and if "exempt from property tax" is possible, I'd rather give up the Senior Homestead Exemption and get the "exempt from property tax deal".

[Cynthiad66]

It seems that you are inquiring about Colorado Property Tax Exemption.  You are receiving a partial exemption but would like 100% exemption.  That is a State Property Tax issue and TurboTax does not have anything to do with that.  TurboTax handles Income Tax issues.

I did check to see if there was anything in CO about Property Tax Exemptions and did not find anything that would fully exempt your real estate from taxes.  However, see below for information regarding the types of exemptions allowed and I think you are receiving.

What are the qualifications for a senior homestead exemption in Colorado?

Taxpayers 65 years and older as of January 1st, who have owned and occupied the property as their primary residence for at least 10 consecutive years may qualify for the Senior Exemption. The exemption reduces the actual taxable value of qualified residential property by 50 percent of the 1st $200,000 of taxable value.

For those who qualify, 50 percent of the first $200,000 of the actual value of the property is exempted.

In the November 2000 election, Colorado voters passed a Property Tax Exemption for seniors, known as Referendum A. Qualifying seniors will see 50 percent of the first $200,000 of actual value of their primary residence exempted from property tax. 

Colorado Property Tax Exemption

I hope this helps.  Please return to this forum if you have additional questions.

[jmfa]

Thanks.  Would be nice for TT to clarify that language, since they charge for state tax expertise.