How to Claim the DC Renters Tax Credit

The District of Columbia’s Property Tax Credit for renters is a refundable credit designed to help residents with low and moderate incomes. Landlords often pass property tax costs on to tenants through rent, and this credit, also known as Schedule H, provides a partial reimbursement of those taxes. This can reduce the housing cost burden for qualifying individuals and can result in a direct payment from the D.C. government, even for those who owe no income tax.

Eligibility Requirements

You must have been a District of Columbia resident for the entire calendar year, from January 1 through December 31. Applications are denied if you lived in D.C. for only part of the year.

For the 2024 tax year, your federal adjusted gross income (AGI) must have been $63,900 or less, or $87,100 or less if you were 70 or older. These income limits apply to the entire tax filing unit. The limits are subject to change annually, so you should verify the current figures for the tax year you are claiming.

You are not eligible if you lived in a property exempt from D.C. real property taxes, such as public housing or a university dormitory. You also cannot be claimed as a dependent on another person’s tax return, unless you were 65 or older at the end of the tax year.

The property you rented must have been subject to D.C. real property taxes. In some cases, a landlord may have an arrangement to pay a percentage of rental income to the District instead of standard property tax; if this is the case for your building, you would not be eligible for the credit.

Preparing Your Claim and Calculating the Credit

The central document for this claim is the D.C. Schedule H, the “Property Tax Credit Claim Form.” You can find the most current version of Schedule H and its instructions on the D.C. Office of Tax and Revenue website. It is important to use the form that corresponds to the specific tax year for which you are filing.

You will need to gather several pieces of information for the form:

• Full names and Social Security numbers for yourself, your spouse, and any other household members.
• Your landlord’s full name and complete mailing address.
• Your total rent paid for occupancy, not including separate payments for utilities. If utilities are included in a single monthly payment, you can include the full amount.
• Your total household gross income, which includes wages, salaries, tips, interest, dividends, pensions, Social Security benefits, and unemployment compensation for all household members.

The Schedule H form guides you through the calculation of your credit. The formula compares your household’s income to the amount of rent you paid during the year. A portion of your total rent, currently set at 20%, is considered to be for property taxes. The credit is then calculated based on how much this property tax equivalent exceeds a certain percentage of your income. The maximum credit available for the 2024 tax year is $1,375.

How to Submit Your Claim

Once you have completed your Schedule H form, there are two methods for submitting it to the D.C. Office of Tax and Revenue. The method you choose depends on whether you are otherwise required to file a D.C. income tax return.

The most common submission method is to file Schedule H along with your annual D.C. individual income tax return, Form D-40. In this scenario, the property tax credit is used to reduce your overall tax liability. If the credit is larger than the tax you owe, you will receive the difference as a refund.

For residents not required to file a D.C. income tax return, Schedule H can be filed as a standalone claim. This allows individuals with very low incomes to still receive the benefit. When filing this way, you submit only the completed Schedule H form. The process results in a direct refund payment for the full amount of the calculated credit.

Both methods offer electronic and mail-in submission options. You can e-file through the OTR’s approved tax software portal, MyTax.DC.gov, which is the fastest and most secure method. If you prefer to file by mail, send the completed forms to the address listed in the Schedule H instructions for the relevant tax year. After submission, processing times can range from a few weeks for e-filed returns to several weeks for paper returns.