What should I do if the property tax bill lists names other than or in addition to my or my spouse's name as owners of the property?
You should attach verification of the claimant's and/or spouse's ownership percentage (or verification that the claimant or spouse has a life estate). Verification may be a copy of a deed, a land contract, a life estate agreement (which is generally provided in a warranty deed or quit claim deed), a divorce judgment, a final judgment in an estate, or a trust instrument.
Also attach a note explaining:
What portion of the year the claimant (or claimant and spouse) and each other owner lived in the home.
What portion of the property taxes each owner paid.
Any other information that helps explain the situation.
If you file electronically, check the correct box showing your ownership as "Self and/or spouse AND OTHERS," indicate your ownership percentage, and indicate the amount of taxes you paid or will pay on the electronic property tax bill data. Do not check the box "Self and/or Spouse" when other names are shown as owners on the property tax bill.
If the home is co-owned with persons other than the claimant's spouse, only claim the portion of the property taxes reflecting the claimant's and spouse's ownership percentage (see the exception below).
If the claimant pays all of the property taxes and the other owners did not live in the home during the year to which the claim relates, claim the portion of the property taxes representing the other owners' ownership percentage as rent on Schedule H, line 14c, or Schedule H-EZ, line 9c (see the exception below).
Exception: If the claimant inherited a partial ownership interest in the home, but the decedent's will provides that the claimant is to pay all of the property taxes:
Use all the property taxes in computing homestead credit (all the property taxes from the date of the decedent's death if this occurred during the year to which the claim relates), even though the home is co-owned.
Attach a copy of the will to verify the inheritance and the tax payment requirement.
Examples:
a.A, B, and C each own a one-third interest in a dwelling. A and B are married to each other and live in the dwelling; C lives elsewhere. A and B both qualify for homestead credit and pay all of the property taxes accrued, which are $1,800.
Either A or B may claim a homestead credit based upon "property taxes accrued" of $1,200, their two-thirds share, plus "gross rent" of $600, since they pay C's one-third share of the property taxes.
If C had also occupied the home, A and B could have claimed only $1,200 of "property taxes accrued" and no "gross rent," even though they paid the entire $1,800. In addition, C could have filed a claim if otherwise qualified, based upon "property taxes accrued" of $600.
b.A mother and son each own a one-half interest in a dwelling occupied solely by the mother, who qualifies for homestead credit. The son pays all of the property taxes accrued on the dwelling.
The mother may claim a homestead credit based upon one-half of the property taxes accrued.
c.A brother and sister both qualify for homestead credit and own 75% and 25% interests, respectively, in a home they both occupy. The brother pays all of the property taxes accrued on the home.
Each may claim a homestead credit based upon the portion of property taxes accrued reflecting that person's ownership percentage. The brother would claim 75% of the property taxes accrued and the sister would claim 25% of the property taxes accrued.