$1,000 BENEFIT for 2014
Schedule H of the D-40 dc income tax form was greatly improved for tax year 2014 (filing year 2015). Sadly, almost nobody knows this. Spring (2018) is the last chance to collect this benefit for tax year 2014. Forms for 2014 must be filed by the deadline for filing (either April 15, 2018 to be safe, or possibly April 17, 2018. [For earlier link, see: http://gleeaikin.blogspot.com/2015/04/dc-taxes-2015-update-good-and-bad-news.html
DC GOVERNMENT could be holding more than 1/4 $billion dollars ($250,000,000,000 +) that we are eligible to receive but have not applied for.
WHAT MUST I DO TO GET THESE BENEFITS?
Am I eligible?
a. Usually if you rented or owned and lived in your own home and paid DC property taxes. Click "print, fill out and mail" form for 2017 below, instructions are on last 2 pages.
b. Check the age and income limits below at "Computing Your Property Tax [or rent payments] Credit Worksheet. You will need Adjusted Gross Income from your Federal 1040 Form. AGI is the amount on the bottom line of page 1.
c. Determine your Family Unit. "Were you an individual or married couple [or domestic partner] ...residing in the same household." "Unit also includes any persons...claimed as dependents on that tax return."
d. Standalone Filers "If you are not required to file a DC individual income tax return because you are below the income tax filing threshold, you can file Schedule H as a standalone return.
Link for D-40X Amended Return: [Form good for tax years 2014 - 2017]
What do I do next?
e. Find your old tax year 2014 federal 1040 (2014 form) and DC D-40 (see links below) forms for filing year 2015. If they are lost or you did not do them fill them out as accurately as you can and submit the D-40 and Schedule H. Also submit any money owed after deducting your calculated Schedule H benefit by the April 15, 2018 deadline. Procedures are similar for 2015, 2016, and 2017 but you have more time to act.
f. If you DID submit your tax forms for tax year 2014, but DID NOT do the Schedule H but were eligible, decide if you want to submit the Schedule H for 2014 on line, or by mail. Select the 2014 Schedule H link below for "fill in" or "print, fill out and mail."
g. Then fill out the D-40X Amended Return and submit with (f. above) before the 4/15/18 deadline. If you don't have the computer skills, get someone to help you print the forms, then fill out by hand and mail in time to get postmarked by 4/15/18.
h. Mail to: Office of Tax and Revenue, PO Box 96145, Washington, DC 20090-6145.
"If you are required to file a DC income tax return, attach Schedule H to your DC income tax return." Address is good for "standalone" Schedule H as well.
i. Don't stop now, go to work on 2015, 2016, and 2017 Schedule H benefits for which you are eligible. Especially if you have property taxes you could get back as much as $4,025 altogether.
j. Tell/show your friends and neighbors who might be eligible before it is too late.
http://app.cfo.dc.gov/services/tax/forms/tax_forms/pdf/d-40x.pdf [Amended return D-40X]
"Generally, an amended return may be filed any time within 3 years from the date when the original return was due." In 2014, due April 15, 2015
Original filing of the D-40 and Schedule H for tax year 2014 must be filed on-line (fill-in) or postmarked (by mail) no later that April 15, 2018. Otherwise you loose the CREDIT forever. There is more time to file for the tax year 2015, 1016, and 2017.
COMPUTING YOUR PROPERTY TAX CREDIT WORKSHEET
"This credit may not be claimed if you live in a property owned by a government, a house of worship or a nonprofit organization."
" The credit equals a percentage of the property taxes paid or the portion of the rent paid that is equivalent to property taxes (20% of rent paid) in excess of the applicable percentage of the total federal adjusted gross income of the tax filing unit. The maximum credit amount is $1000." For tax year 2017 it is increased to $1025.
If you are under age 70 and the Federal AGI of your tax filing unit is: $0 - $24,999, use the percentage amount of property tax that exceeds 3.0% of the adjusted gross income of the tax filing unit.
For $25,000 - $40,000, use the percentage amount of property tax that exceeds 4.0% of the adjusted gross income of the tax filing unit. For tax year 2016 & 2017, $40,000 has been increased to $50,000.
If you are age 70 or older and the Federal AGI of your tax filing unit is: $0 - $60,000, use the amount of property tax that exceeds 3.0% of the adjusted gross income of the tax filing unit.
1. Enter federal AGI of tax filing unit (Line 1, Section A, Schedule H or Line 8, Section B, Schedule H).
2. Enter property taxes paid in 2014 or 20% of rent paid in 2014.
3. Multiply Line 1 by the applicable percentage (.03 or .04).
4. Balance (Subtract Line 3 from Line 2).
5. Property Tax Credit Limit.
6. Enter the smaller of Line 4 or Line 5 here on Line 6 and on Line 3 of Schedule H, Section A for credit based on rent paid, or Line 9 of Schedule H, Section B for credit based on property tax paid. Round to the nearest whole dollar.
The exact line number to use when filling out the Schedule H will vary slightly depending on whether you are filling out Schedule H for 2014, 2015, 2016, or 2017. These refer to the years when money was actually earned or benefited. And are normally filed the following April. There is a 3 year time allowed to file an Amended Return.
If you sent an FR-127 Extension of Time to File, you can submit the Schedule H when you file the D-40. Instructions are unclear as to whether you should submit the Schedule H with the FR-127 or only with the final tax submission. This should be fixed. The Schedule H Instructions say it is due by April 15, 2015 [or later years. The FR-127 only says to submit full payment of any taxes due by April 15, 2015 [or later years. [OTR told me submit Schedule H with the D-40, NOT with the FR-127. Even if you don't have enough income to file the D-40, you still may be eligible if you pay rent or property taxes.
Here are links for the fill-in versions of Schedule H.
http://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2014_Schedule%20H_0002FillIn011515.pdf [2014 Schedule H]
https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/48153_Schedule%20H_010616_0002.pdf [2015 Schedule H]
https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2016%20Schedule%20H_0002.pdf [2016 Schedule H]
https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2017%20Schedule%20H_0002_0.pdf [2017 Schedule H]
Here are links for the print, fill out and mail versions of Schedule H
http://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2014_Schedule%20H_11201412-2014.pdf [2014 Schedule H]
https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/48364_Schedule%20H_12.9.15.pdf [2015 Schedule H]
https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2016%20Schedule%20H_12.15.16.pdf [2016 Schedule H]
https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2017%20Schedule%20H.pdf [2017 Schedule H, 2 pages of instructions also shown]
If there are 3 or fewer people in your Tax Filing Unit, then you only need print pages 1, 2, and perhaps 5 (the Computation Worksheet).
Here is the link for the D-40X Amended Individual Income Tax Return.
Here is the link for the D-40X Amended Individual Income Tax Return.
Good luck, and please pass this information on to as many of your friends, neighbors, and lower and middle class earners that it could benefit.
The DC government has given some people difficulties when they tried to claim the Schedule H benefit. Contact your Councilmember for help, and leave a comment with information below.