Uncategorized New in 2010: Homestead verification forms

New in 2010: Homestead verification forms

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In 2009, the General Assembly set out a process under HEA 1344 to ensure that all homeowners are receiving the appropriate property tax deductions and to address potential tax fraud. Beginning with the Pay 2010 property tax statements, all Indiana residents who own a home will be receiving a Homestead Verification Form. The verification form, or “Pink Sheet,” will be used to verify residency and eligibility for homeowners who claim the Indiana Homestead Deduction.

The information that is collected will be used to compile a secure database that County Auditors can use to determine that every homeowner, as an individual or married couple, only receives one Homestead Deduction.

Each county will have a different due date for submission of the verification form for each year based on when tax bills are mailed, so homeowners should pay close attention to the date on the Pink Form that they receive.

Additional forms will be mailed out with tax statements in 2011 and 2012. Homeowners will need to ensure that their forms are accurately submitted to the County Auditor at least once before 2013, or risk losing the Homestead Deduction on their property.

Questions?
Check out the Department of Local Government Finance’s Fact Sheet on the Homestead Verification Form.

More on the Homestead Deduction
Homestead: A dwelling used as an individual’s primary residence, one garage and up to one acre of immediately surrounding land.

The Homestead Standard Deduction reduces the taxable assessed value of the homestead portion of a property by the lesser of 60 percent or $45,000. (Personal property mobile homes are limited to 50% of the home’s value in deductions). Individuals and married couples are limited to one homestead deduction.

Those receiving the standard deduction automatically receive the Supplemental Homestead Deduction, the 1% property tax cap and any state or local homestead credits on the homestead property.

Additional information regarding the homestead and other property tax deductions is available online at the Department of Local Government Finance website.