Living in Missouri, how do you get the homestead disaster tax credit for 2025 when filing online?

[skonert99]

This is for the March 2025 storms.

[MaryK4]

In the Missouri state section of TurboTax, look for the Miscellaneous Missouri Credits.  Select HDC from the dropdown list and enter the amounts.  You will have to paper file your return and attach the Form 5926 Homestead Disaster Tax Credit Affidavit.  
 

The Missouri Homestead Disaster Tax Credit (HDC) is a non-refundable, up to $5,000 state tax credit available starting in 2025 for residents who paid insurance deductibles due to damages from a federally declared disaster on their primary residence. It requires applicants to have lived in the home for over six months, with excess credits carrying forward for up to 29 years.   For complete details, see Homestead Disaster Tax Credit (HDC) 

[jabearden]

Hi - I cannot find this tax credit in turbotax. Do you have more details on where it can be found/entered?

[DawnC]

At the end of the MO return, when you come to the page titled Miscellaneous Missouri Credits, answer YES.   @jabearden   This list contains examples but the Homestead Disaster Credit is included in the miscellaneous options.    On the next screen, select HDC from the dropdown menu.  

Homestead Disaster Tax Credit - This credit may be carried forward for a maximum of twenty-nine years. 

[Jschin]

When I get to that screen and select the Homestead Disaster Tax Credit it then asks me for the credit amount.. how do I know the credit amount? Is that what my deductible was or the claim amount? 

[JamesG1]

Refer to the signed affidavit Form 5926 Homestead Disaster Tax Credit Affidavit which would explain the amount that you should claim.

Missouri Homestead Disaster Tax Credit provides financial relief to Missouri individual residents who incurred an insurance deductible on their primary residence due to a qualifying disaster in 2025.

The individual taxpayer claiming the tax credit shall file a signed affidavit Form 5926 Homestead Disaster Tax Credit Affidavit with their individual income tax return, verifying:

• Address including county of residence that suffered damage
• Date the disaster occurred
• Evidence the insurance deductible was incurred as a result of a claim paid under a homeowner’s or renter’s insurance policy issued by an insurance company licensed in Missouri.

The taxpayer should also attach the document provided by the insurance company and Form MO-TC Miscellaneous Income Tax Credits.

@Jschin 

[Jschin]

So, the deductible basically. 

Also, the credit claims to be "non-refundable" and any unused portion can roll forward for additional years..  So if I owe the state $400 and my credit is $1000.. my tax liability will then be $0 and the unused $600 will roll forward for the following year. 

Is that correct ?

[JamesG1]

That is correct.  

Missouri Homestead Disaster Tax Credit states:

The tax credit can be carried forward to any of the taxpayer’s twenty-nine subsequent tax years or until the full amount of the tax credit is redeemed.

@Jschin 

[Jschin]

Perfect. That all makes sense now. 

However, I am -$750 to the state. And when I enter my $1500 deductible for the Homestead Disaster Credit, Turbotax software then updates to +$750, instead of $0. 

[AmyC]

The homestead credit reduces your tax liability but is not refundable. You may be seeing a refund because you had $750 withheld in taxes through the year which is refunded to you when there is no tax liability. You can verify your tax liability and your taxes paid in.