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If you are over the age of 65 or permanently disabled, Fairfax County has a Real Estate Tax program that will reduce the amount of taxes that you are required to pay on your residence.

Annually, this program helps approximately 8,000 residents save around $24 Million in property taxes!

If you are a first time applicant, the deadline for filing your application is December 31 of the year you are requesting relief. If you are a returning applicant, your filing time is from January 1 through April 1.

There are exceptions for extending your filing time. If you are a first time filer or suffered a hardship and did not file for 2010, you will have until December 31, 2011 to file.

Here are the requirements that must be met to file for the real estate tax relief.

• The home must be your permanent residence…vacation homes do not qualify.
• For age relief, your minimum age must be 65. If you are married, and you and your spouse own the home jointly, either you or your spouse must be at least 65.
• For disability relief, you must be totally and permanently disabled. If you are married and own the home jointly, either you or your spouse must be totally and permanently disabled.
• Combined income for anyone, including you, your spouse, and any relatives that resides in the house must not exceed $72,000. With the exception of your spouse, any relative who resides with you may deduct $6,500 from reported gross income. However, if you are disabled, any relative who resides with you, with the exception of your spouse, may deduct $7,500 from reported gross income.
• Combined net assets of residents of the home including any homeowner and any homeowner’s spouse (not including the home value, one acre of land and all furnishings) must not exceed $340,000.
• If the property was jointly owned, and the co-owner is deceased, you must provide a copy of the death certificate.

If you meet these qualifications, here is the amount of your tax relief:

GROSS INCOME                     AMOUNT OF TAX RELIEF
$52,000 or less                            100%
$52,001 to $62,000                      50%
$62,001 to $72,000                      25%

If you need an application to apply for the Tax Relief program, please call 703-222-8234; if you have impaired hearing please call 703-222-7594.

I am Jeff Wu and I can assist you with all of your real estate needs in Tysons Corner, McLean, Vienna, or anywhere in Fairfax County. If you are planning on selling your house or purchasing a home, please contact me at Agent Knows Homes.

Key Features of the Extended Tax Credit “December 1 – April 30, 2010″

[1] First Time Buyer – Amount of Credit

- $8000 ($4000 married filing separate)

[2] First Time Buyer – Who is eligible?

- Purchaser may not have had interest in a principal residence for 3 years prior to purchase.

**[3] Current Homeowner – Amount of Credit (NEW)

- $6500 ($3250 married filing separate)

[4] Effective Date – Current Owner

- Date of Enactment

[5] Current Homeowner – Definition for Eligibility

- Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years

[6] Termination of Credit

- Purchases after April 30, 2010

[7] Binding Contract Rule

- So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close

[8] Income Limits

- $125,000 for single people + $225,000 for those that are married; Additional $20,000 phase out

[9] Limitation on cost of purchased home

- $800,000 Effective Date of Enactment

[10] Purchase by a Dependant

- Ineligible Effective Date of Enactment

[11] Anti-Fraud Rule

- Purchaser must attach documentation of purchase to tax return

The Senate has approved an extended and expanded tax credit for home buyers

On Wednesday the senate passed an expanded tax credit.  The First Time Home Buyer Tax credit has been seen as a huge success and its expiration on November 30 has had many feeling nervous about what its end will mean.  Those fears can now be put aside.  While the bill still has to pass through the House, which it is expected to do next week, is was overwhelmingly approved by the Senate in a 98-0 vote.

What is new and improved with the extended and expanded tax credit?  The new and improved tax credit is still for first time home buyers but will also include home buyers who have owned their current home for 5 years or more.  The credit is up to for $6,500 for these current homeowners and remains at up to $8,000 for First time home buyers or home buyers who have not owned a home for the past three years.  The tax credit  is income restricted, an individual cannot make more that $125,000 annually and a couple cannot make more than $225,000 jointly.  A home must be  a primary residence and valued at $800,000 or less.  Buyers must have a property under contract to purchase by April 30, 2010, and the property must close by June 30, 2010.

The passing of this extended, expanded tax credit is good news on the real estate front and is expected to be the last tax credit offered for a long time to come.

Help spread the word on this great opportunity.  People can take advantage here in Tysons Corner, McLean, Vienna, Arlington or all across the country.