If you are filing a Rhode Island income tax return and claiming a property tax relief credit, attach RI-1040H to your Rhode Island income tax return. Your property tax relief credit will decrease any income tax due or increase any income tax refund. If you are not required to file a Rhode Island income tax return, Form RI-1040H may be filed without attaching it to a Rhode Island income tax return.
WHO MAY QUALIFY
To qualify for the property tax relief credit you must meet all of the following conditions:
a) You must be sixty-five (65) years of age or older and/or disabled.
b) You must have been domiciled in Rhode Island for the entire calendar year 2014.
c) Your household income must have been $30,000.00 or less.
d) You must have lived in a household or rented a dwelling that was subject
to property taxes.
e) You must be current on property tax and rent payments due on your
homestead for all prior years and on any current installments.
WHO MAY CLAIM CREDIT
If you meet all of the qualifications outlined above, you should complete Form RI-1040H to determine if you are entitled to a credit. Only one person of a household may claim the credit. If there are multiple individuals within a household, the taxable and non-taxable income of all household members must be included in part 5 of this return. If the household income of all members is less than or equal to the $30,000 threshold, the credit may still be claimed, but only by one member of the household. The right to file a claim does not survive a person's death; therefore a claim filed on behalf of a deceased person cannot be allowed. If the claimant dies after having filed a timely claim, the amount thereof will be disbursed to another member of the household as determined by the Tax Administrator.
Attached to this claim shall be:
For homeowners: A copy of your 2014 property tax bill.
For renters: Copies of three (3) rent receipts for the year 2014, or a copy of your 2014 lease agreement. If you lived in subsidized housing, attach a copy of your HUD statement. For claimants on social security, a copy of your social security award
letter or Form 1099-SSA for the year 2014 is also required.
What is meant by "disabled" - The term "disabled" means you are receiving a social security disability benefit. What is meant by "homestead" - The term "homestead" means your Rhode Island dwelling, whether owned or rented, and so much of the land
around it as is reasonably necessary for the use of the dwelling as a home, but not exceeding one acre. It may consist of a part of a multidwelling, a multi-purpose building or another shelter in which people live. It may be an apartment, a houseboat, a mobile home or a farm. What is meant by a "household" - The term "household" means one or more persons occupying a dwelling unit and living as a single nonprofit housekeeping unit. Household does not mean bona fide lessees, tenants or
roomers and borders on contract. What is meant by a “dependent” - The term “dependent” means any person living in the household who is under the age of 18 who can be claimed by someone else on their tax return. What is meant by "household income" - The term "household income" means all income received both taxable and nontaxable by all persons of a household in a calendar year while members of the household. What is meant by "rent paid for occupancy only" - The term "rent paid for occupancy only" means the gross rent paid only for the right of occupying your homestead. If you rented furnished quarters, or if utilities were furnished, such as heat, electricity, etc., then you must reduce the amount of gross rent by the reasonable rental value (not cost) of the furniture and the reasonable value of such utilities as were furnished. What is meant by “public assistance” - The term “public assistance” means cash assistance from government assistance programs informally known
as welfare assistance, and more commonly known as “Temporary Assistance for Needy Families (TANF)”. Under RIGL 44-33-16, a claim for property tax relief shall exclude all taxes or rent paid with public assistance. Note: Part 5, line 30 and Part 2, line 1a must be equal.
LIMITATIONS ON CREDIT
Under the provisions of RIGL 44-33-16, a claim for relief shall exclude all taxes or rent paid with public assistance funds. The maximum amount of credit allowable under Chapter 44-33, Property Tax Relief Act, for calendar year 2014 is $305.00. In event that more than one person owns the residence, the taxes will be divided by the owner's share.
If you live on land that is rented and your home or trailer is subject to property tax. Multiply the amount of rent you paid in 2014 by 20% and add the amount to the property tax paid. Then enter the total on RI-1040H, line 2.