Homeowners have a few days left to file deductions that could save them hundreds on their property taxes next year.
If you bought a home in the past year or refinanced your mortgage, you need to be sure to have filed your deductions with the county. If you didn’t buy a home or refinance in 2015, you’re in the clear.
The deadline to file the homestead and mortgage deductions, along with others that are given to homeowners that meet certain requirements, is Thursday. The forms must be received by the county auditor’s office by Jan. 5.
Residents are eligible for multiple deductions that would help reduce their tax bill.
The two most common deductions are the homestead deduction, which subtracts an amount from the home’s total value for residents who live in the home; and the mortgage deduction, which takes off another $3,000 from the value if you have a mortgage.
Homeowners also can be eligible for other deductions, which would reduce the home’s taxable value by more, but they must meet certain requirements, such as being a veteran, disabled or using geothermal, solar or wind energy. To find out more about those deductions and if you qualify, visit in.gov/dlgf.
Any deductions would be applied to next year’s property taxes and can make a substantial difference in how much you will pay.
More than 38,000 local homes qualify for a homestead deduction, which reduces the home’s value the most. That deduction subtracts $45,000 from the total value of your home, along with another 35 percent, significantly reducing the amount that the county uses to calculate how much you owe in taxes.
For example, a $100,000 home would be taxed on a total value of $32,750 after those deductions are subtracted.
The county figures in those deductions, then uses the lesser value to calculate the tax bill, based on where you live and the tax rate for the services in your area.
The owner of a home in the Center Grove area, for example, would pay about $557 per year in property taxes with the deductions and about $1,700 per year without them.
Residents have until the end of the year to file forms needed for their deductions, which help reduce property tax bills.
Deduction forms must be completed by Dec. 31, and must be received by the auditor’s office, located at 86 W. Court St., Franklin, by Jan. 5.
When filing for the deduction, the auditor’s office may require some proof or documentation. For more information, visit co.johnson.in.us/auditor-faqs.