Homeowners: The homestead deduction is the single most significant reduction to an Indiana real property taxpayer’s liability (as much 60% of your assessed valuation or $45,000, whichever is less). An additional homestead credit, also known as the supplemental homestead deduction, can be as much as 25% (17% state and 8% county) of your gross tax. To combat widespread error and abuse in the claiming and granting of homestead deductions against real property tax bills, the Indiana legislature in 2010 enacted HEA 1344-2009. The new law requires the annual tax statement provided to real property taxpayers (Form TS-1) to include a form requiring all taxpayers who wish to continue receiving the homestead deduction to verify their residency and eligibility to receive the deduction. The verification form has been provided to all Indiana real property taxpayers with their 2010, 2011 and 2012 tax bills, and to continue receiving the homestead deduction/credit, eligible taxpayers MUST complete and return the form to their county auditor AT LEAST ONCE before January 1, 2013 or the deduction will be removed from their tax bills.
Be sure to file the homestead deduction verification form as soon as possible. If you are not sure whether you have done so, go ahead and complete and turn in the form today. For Marion County taxpayers, the form can be completed and submitted online at http://cms.indygov.org/apps/auditor-deductions/05473.pdf. Residents of other counties can find the form and instructions for submission here: https://www.pdffiller.com/edit.php?id=1400506. You may also want to contact your County Auditor to ensure it was received and to avoid any bad surprises when the 2012/pay 2013 tax bills are received.