Although home owners reap the most benefits when it comes to tax deductions, renters shouldn’t overlook one possible credit for which they may be eligible.
A part of your rental payment each month goes to paying the cost of your landlord’s taxes on the property you rent. As a result, some states have a rental credit for tenants in order to offset this. To make a claim, you would first need to contact your state treasury department to find out if your state offers this benefit.
Be aware also that there may be certain restrictions such as income or residency requirements. If your state has this credit, there is usually a particular formula they use to determine the amount you can claim.
A few things to keep in mind if you think you might be eligible:
- Make sure you keep your rental receipts. Contact your landlord if necessary to get a copy of your rental agreement and payment.
- Don’t forget to check this out if you own a mobile home or modular house, and rent the property on which it sits.
- You may be eligible for this even if you don’t have sufficient income to file an income tax return.
As noted in the previous blog, the AARP help centers have volunteers who can assist you with this and other tax questions.