$45,000 maximum standard deduction. The benefit of an additional homestead supplemental credit will be automatically applied when the $45,000 maximum standard deduction is applied. The homestead supplemental credit is calculated as a 35% deduction from the assessed value of the property after the standard deduction has been subtracted. For assessed values greater than $600,000, a 35% deduction will be applied for the 1st $600,000 of assessed value, while a 25% deduction will be applied to the remaining assessed value beyond $600,000.
You do not need to file for the homestead supplemental credit; it is automatically applied in direct correlation with the standard homestead credit.
Filing for the Deduction
Homeowners do not need to reapply for this deduction unless there has been a change in deed, marital status, or change in the use of the property. When you file your standard homestead, you are required to provide your social security number and driver's license number, as well as the same information for your spouse regardless of how you took title. Individuals and married couples are limited to one homestead standard deduction per homestead laws (Indiana Code (IC) 6-1.1-12-31 and 6-1.1-20.9). The State of Indiana has recently passed legislation (IC 6-1.1-36-17) allowing the county auditor to back tax and add a penalty for those property owners deemed ineligible.
Homestead fraud is a growing trend that has the potential for significant penalties, and is causing higher tax bills for everyone. Individuals and married couples are limited to one homestead standard deduction per homestead laws (IC 6-1.1-12-37 & IC 6-1.1-20.9). The State of Indiana has recently passed legislation (IC 6-1.1-36-17) allowing the county auditor to back tax and add a penalty for those property owners deemed ineligible.
Homestead deductions are not automatically removed when a taxpayer files a deduction on another property. It is the homeowners' responsibility to provide a written, certified statement to the county auditor within 60 days of the date of change.
Our county is always generating new ways to eliminate homestead fraud. Should you have a tip of a local rental property or know of someone who has not been living in their home for a while, please let us know by emailing us.