I meet the requirements for this tax credit for the state of Montana as per Turbo Tax. I received a letter stating my refund has been changed and I don't understand it. I called and received another letter from them stating the same thing!
Line 23 was changed in the amount of property tax. The allowable property tax billed is limited to one acre. I have 2.5 acres. The property tax used is '80% of the amount billed. If your property is more than 20 acres, the property tax used in the credit calculation is the total amount of property tax billed divided by the total acreage.
They said I was no longer qualify for that credit. I really don't understand this. I am challenging it for a review. Is this a error that Turbo Tax should have caught? I can't seem to get a answer from anyone. My taxes paid was $1536.00 They changed to: $184.00 I could not get the figures to come out to that.
Per the State of Montana, if the one-acre farmstead or primary acre is not separately identified on the tax bill, you can use the one-acre land calculator to determine the amount of property tax paid on the land that is eligible for the credit.
I entered in 2.5 acres and $1,536 in property tax into the calculator and the result was $614.40. This amount gets entered on the Property Tax Rebate Claim Form. There are other factors that go into the credit calculation, such as your household income and your multiplier rate, which I do not have so I can't verify the $184 amount for you.
However, you would have had to enter the $614.40 into TurboTax, and not the $1,536 for the credit to have calculated correctly.
Seems they used the address to verify the amount of taxes paid and it only showed the taxes on the mobile Home and not the property. I have since sent in the copy of the property taxes on the land and they will correct it to what Turbo Tax showed! Never hurts to question it if you don't understand it.
Thank you.