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Local property tax credit

PostPosted: 17-Mar-2023 7:52am
by Smokeytax
Many state and counties have property tax credits for seniors, low income, veterans, handicapped home improvements, etc.
How do address client expectations for these?
Taking responsibility for making sure all of these are taken advantage of could be a huge in terms of education (different for each state and county) and completing the applications. It could easily double our required fee.
But remaining silent could result in their falling through the cracks and many clients assume that we are preparing all needed tax forms.
Any ideas?
Thanks!

Re: Local property tax credit

PostPosted: 17-Mar-2023 12:39pm
by CathysTaxes
I tell them it's not part of my practice. I believe I even read that in Illinois you can't charge for this.

Re: Local property tax credit

PostPosted: 19-Mar-2023 7:01am
by Smokeytax
That's really interesting, Cathy! Do you put that in your engagemeng letter?

Re: Local property tax credit

PostPosted: 19-Mar-2023 3:51pm
by CathysTaxes
Smokeytax wrote:That's really interesting, Cathy! Do you put that in your engagemeng letter?

Nope, I just tell them when they call me about it.

Re: Local property tax credit

PostPosted: 19-Mar-2023 4:17pm
by JAD
You shouldn't have to disclaim in your engagement letter. It can say that you are preparing federal and state income tax returns. That does not include property tax issues.

In CA, we are sometimes told that filing certain forms with the County crosses into the practice of law. It seems a bit fluid, but that might be another excuse.

Re: Local property tax credit

PostPosted: 20-Mar-2023 9:15am
by Smokeytax
Thanks Cathy and JAD. Hope your tax seasons are going well.

Re: Local property tax credit

PostPosted: 20-Mar-2023 7:12pm
by TheAnswerMan
FYI - I learned within the last month that for Nebraska there is a tax credit on the income tax return that is calculated by how much property tax the taxpayer pays. First state I've seen do that, but others may be out there. Form PTC is what it's called. May be helpful if any of your clients own real estate in Nebraska.

Re: Local property tax credit

PostPosted: 21-Mar-2023 4:16pm
by sjrcpa
CT and DC do, too, but there are income limits. Hardly anyone in my practice gets a credit.

Re: Local property tax credit

PostPosted: 22-Mar-2023 4:14pm
by missingdonut
TheAnswerMan wrote:FYI - I learned within the last month that for Nebraska there is a tax credit on the income tax return that is calculated by how much property tax the taxpayer pays. First state I've seen do that, but others may be out there. Form PTC is what it's called. May be helpful if any of your clients own real estate in Nebraska.


There are several states that do this. Wisconsin also has a property tax credit which is available to renters as well (and it's good logic because, albeit indirectly, renters pay property taxes too)