Homestead Disaster Tax Credit MO

[arbaseler]

When adding this in the Misc Credits section, does it matter if the deductible amount is listed under the taxpayer or the spouse? 

[AmyC]

Yes. The credit reduces taxable income so it does matter where it is listed and how much. Since you are filing a joint return, you want to allocate the money to be most beneficial for you. If only one of you works creating a high tax liability, put it all on that person. If you both work, you want to reduce each person's tax liability. The credit is only good up to the tax liability.

For example:

• Taxpayer has $500 liability Spouse has $400 liability and you have a credit of $700.
  • You could put $500 on taxpayer and $200 on spouse. 
  • You can arrange the number to a max of $400 on spouse and $500 on taxpayer in this scenario.
• You would lose money if you put $700 on taxpayer.

[arbaseler]

Thank you for that info! Yes, it benefits us the most if we split the credit between both of us, as my tax liability is less than the total deductible paid.  I just wanted to make sure splitting it was allowed.