WV Property Tax Rebate: How to File for Your Credit
Understand West Virginia's Senior Citizen's Tax Credit, a refundable credit for property taxes that is filed with your annual state tax return.
The state of West Virginia offers a property tax credit to help eligible senior citizens and disabled individuals reduce their tax burden. Officially named the Senior Citizen’s Tax Credit for Property Tax Relief, this program provides direct financial relief on property taxes paid on a primary residence. It functions as a refundable credit, meaning that if the amount of the credit is more than the income tax owed, the taxpayer receives the difference as a refund. This credit is calculated based on the property taxes paid and is claimed on the annual state income tax return.
Eligibility for the Property Tax Rebate
To qualify for the Senior Citizen’s Tax Credit, an individual must meet several specific criteria related to age or disability, residency, income, and property tax payments. This credit is separate from the state’s Homestead Exemption program, which provides a reduction in the assessed value of a home for tax purposes. While many who qualify for the tax credit also receive the Homestead Exemption, participation in the exemption program is not a prerequisite for the credit.
Age or Disability Status
An applicant must be at least 65 years of age or be certified as permanently and totally disabled. For those qualifying by age, the individual must be 65 or older by the end of the tax year for which they are filing. This certification comes from the Social Security Administration (SSA) or another approved government or private retirement plan. An official award letter or a similar document from these agencies serves as proof of disability.
Residency and Homeownership
The claimant must have owned and occupied their primary residence, referred to as a homestead, within West Virginia for at least six months of the tax year. This means the property cannot be a vacation home or a rental property; it must be the principal home of the person filing for the credit.
Income Limits
Eligibility is restricted based on income. The income limitation is based on the taxpayer’s federal adjusted gross income (FAGI) and must be less than 150% of the federal poverty guidelines for the household size. The income thresholds are updated annually.
Property Tax Payment
An applicant must have paid the property taxes on their homestead for the year they are claiming the credit. It is also important to note that individuals who receive a property tax credit for certain disabled veterans are not eligible to claim the Senior Citizen’s Tax Credit.
Information and Forms for Your Claim
Before filing for the rebate, you must gather specific documents and information to accurately complete the required form. The primary form for this credit is the WV/SCTC-1, Senior Citizen’s Tax Credit. This form is the official application for the rebate and must be completed and submitted with your state income tax return.
Required Documentation
To substantiate your claim, you will need several key documents. Proof of age, such as a copy of a driver’s license or birth certificate, is required if you are qualifying based on age and it is your first time filing. If you are qualifying due to a disability, you must provide your official notice of award letter. You will also need your property tax receipt for the relevant year, which shows the total amount of real estate tax you paid on your home.
Required Information
You will need specific data points to complete the claim form. Your Federal Adjusted Gross Income (FAGI) can be found on your federal income tax return, Form 1040. You will also need the exact amount of property taxes paid on your homestead. Be prepared with your Social Security Number and the names and Social Security Numbers of all other individuals residing in the household.
Completing the Claim Form
The WV/SCTC-1 form is where you will consolidate all of this information. The form can be downloaded from the West Virginia State Tax Department’s official website. The form’s instructions guide you through the calculation to determine the final credit amount.
How to File for the Rebate
The claim for the Senior Citizen’s Tax Credit is not a standalone submission. It must be attached to and filed with your annual West Virginia Personal Income Tax Return, Form IT-140.
Filing Options
There are two primary methods for submitting your completed tax return and the attached WV/SCTC-1 form: electronically or by mail. If you use tax preparation software to e-file your return, the program will typically guide you through the process of claiming the credit, and it will electronically attach the form to your IT-140 submission.
For those who prefer to file by paper, you must physically attach a copy of the completed WV/SCTC-1 form to your printed Form IT-140. The completed packet should be mailed to the West Virginia State Tax Department at the address specified in the Form IT-140 instructions.
After You File
After you have submitted your return, the state will process your claim. The processing timeframe for state tax returns can vary, but you can typically check the status of your refund on the State Tax Department’s website.