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Filing deadline extended for new over-65 tax breaks

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Seniors must update records in county auditor's office by Jan. 30

By The Staff

TELL CITY – Perry County Auditor Connie Berger has extended the filing deadline for the over-age-65 deduction and the over-age-65 circuit breaker credit until Jan. 30 for the 2008-pay-2009 tax year.

This deadline does not apply to any other deductions filed in the auditor's office. In 2008 the General Assembly created the over-65 circuit-breaker credit, but counties did not receive detailed requirements on the credit until late 2008.

Following are the requirements for the deduction and the credit:

Over-Age-65 Deduction

• Individuals had to be 65 years of age on or before Dec. 31, 2008.

• Adjusted gross income for 2007 could not exceed $25,000. You must provide a federal-income-tax return for 2007 to verify adjusted gross income.

• The assessed value of the individual's real property cannot exceed  $182,430 and individuals must reside on the property.

• Maximum amount of the deduction is $12,480 or half of the assessed valuation of the property.

• Deduction can be filed in combination with a homestead credit or mortgage deduction.

• If person filing exemption died in 2007, the surviving spouse will need to file for the deduction.

Over-65 Circuit-Breaker Credit

• Individuals had to be 65 years of age on or before Dec. 31, 2008.

• Individual must have qualified for a Homestead Standard Deduction in calendar year 2008 and must qualify for the Homestead Standard Deduction in 2009.

• Individuals must reside on the property.

• The assessed value of the individual's real property cannot exceed $160,000.

• Adjusted gross income for 2007 cannot exceed $30,000 for an individual or $40,000 for an individual and spouse. You must provide a federal-income-tax return for 2007 to verify adjusted gross income.

• Credit can be filed in combination with a mortgage deduction, homestead credit, blind deduction, disabled person's deduction and any veterans deduction.

• If an individual meets all the above requirements, they will receive a property-tax cap that prevents their property-tax liability from increasing by more than 2 percent. If a property-tax bill was $500 for pay 2008 and increased to $600 for pay 2009, then the taxpayer will receive an over 65 circuit-beaker credit of $90 and only pay $510 in taxes for 2009.

Property owners who have an over-age-65 deduction on file in the auditor's office do not need to file for the over-65 circuit-breaker credit. That credit will automatically be filed for them.

Property owners who have not filed before and think they may qualify for either the over-65 deduction or the over-65 circuit-breaker credit can check with the auditor's office before the Jan. 30 deadline.

Anyone who has not filed for the above deduction or credit, or who has any questions pertaining to them should call the auditor's office at 547-6427, or visit the office in Suite W-3 at the courthouse.