The end of the year is almost in sight.
But before 2019 starts, local residents who bought a home or refinanced their mortgage this year have one last opportunity to file deductions that could save them hundreds of dollars on property taxes next year.
Applications for the homestead and mortgage deductions, along with others that are given to homeowners that meet certain requirements, have to be dated by Dec. 31. That paperwork has to be turned into the county auditor’s office by Jan. 4.
The deductions work by reducing the amount of assessed value a taxpayer pays on a given parcel of property, said Pam Burton, county auditor. Residents are eligible for multiple deductions that would help reduce their tax bill.
Those savings can add up immensely. As an example, the property taxes on a $250,000 home in the Center Grove area that took the deductions would be $2,200. The taxes for that same home without the deductions would be $4,223.
The homestead deduction is one of the most impactful for local homeowners, as more than 41,000 homes in the county currently qualify for it, Burton said. The deduction subtracts $45,000 from the total assessed value of the home, as well as another 35 percent supplemental deduction, which greatly impacts how the county calculates the taxes you owe.
For example, a $100,000 home would be taxed on a total value of $32,750 after those deductions are subtracted.
The mortgage deduction is also significant. Indiana residents who have a mortgage can deduct either one-half of their assessed value of their property, or $3,000, whichever is less, Burton said.
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.
Homeowner do not need to reapply for the deductions annually. The only reason to reapply would be if the property was sold this year, the title changed hands or the mortgage was refinanced.
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.
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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 and dated by Dec. 31, and must be received by the auditor’s office, located at 86 W. Court St., Franklin, by Jan. 4.
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.
To learn about other deductions, go to in.gov/dlgf.
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