Maryland State Department of Assessments & Taxation
2020 Homeowners’ Property Tax Credit Application HTC-1 Form ● Filing Deadline September 1, 2020
Apply online www.taxcredits.sdat.maryland.gov
HTC-1(v.1.0) Jan 2020
Page 3 of 4
INFORMATION
The State of Maryland provides a credit for the
real property tax bill for homeowners of all ages
who qualify on the basis of gross household
income. For more information, please visit our
website at
https://dat.maryland.gov/Pages/Tax-
Credit-Programs.aspx
Eligibility
A new application must be filed every year if
applicant wishes to be considered for a tax
credit. Actual taxes eligible for this credit do not
include fixed metropolitan charges which may
appear on the tax bill for such services as
sewer, water or improvement repayments, and
do not include taxes for excess land acreage,
other buildings or portions of buildings used for
business purposes. Property owners with large
tracts of land will have the credit limited to the
amount of taxes on land necessary for the
residential dwelling and does not include
excess acreage. The credit shall be limited to
the portion of the dwelling that is used only for
the applicant’s residential purposes.
An application may be subjected to an audit at
any time and applicant may be requested to
submit additional verification or other evidence
of income in order to substantiate the
application for the property tax credit.
Requirements
Applicant(s) must satisfy four (4) legal
requirements before eligibility can be
considered:
1. The dwelling for which the application is
being made, must be the applicant’s
principal residence. Applicant resides or
expects to reside for more than six (6)
months of the tax year, including July 1,
2020, unless unable to do so for reasons
of illness, need of special care or the
property was recently purchased. An
individual who permits, pursuant to a court
order or separation agreement, a spouse,
former spouse or children of that person’s
family, to reside in a dwelling in which the
individual has a legal interest, has met the
residency requirement. A homeowner may
claim credit for only one principal
residence.
2. Applicant must have legal interest in the
property. Land installment sales, contract
purchases, holders of a life estate and
beneficiaries of certain trusts have
sufficient legal interest.
3. Net worth, excluding the value of the
property for which the credit application is
being made and the cash value of IRAs or
qualified retirement savings plans, must
not exceed $200,000, as of December 31,
2019.
4. Combined gross household income cannot
exceed $60,000.
If all four requirements are met, the amount of
tax credit due, if any, will be calculated on the
basis of the gross household income for
calendar year 2019.
Limitations
The lesser of $300,000 of the total assessed
value minus any Homestead credit, shall be
used for calculating taxes eligible for credit.
Important Filing Deadlines
The deadline for filing an application is
September 1, 2020. However, if applicant
submits a properly completed application
before May 1, 2020, and that application is not
subject to an audit by the department, applicant
will receive any credit due on the July 1, 2020
tax bill. A properly completed application
means that all questions are answered, the
form is signed, copies of the entire federal
income tax return, schedules and forms,
necessary Social Security form (SSA-1099),
Railroad Retirement Verification or Rate Letter
are all included and applicant has provided
responses to any subsequent inquiries made
by the department in a reasonable time frame.
If the application is filed after May 1, 2020,
applicant should not expect to receive any tax
credit on the July 1, 2020 tax bill, and is
advised to pay the tax bill to receive the
discount for early payment.
How Tax Credits are Granted
By submitting this application, the applicant will
receive one of the following:
Credit directly on the July property tax bill if
the application is completed properly and is
not subjected to audit and is received before
May 1, 2020; or
A refund if the bill has already been paid; or
Written denial stating the reason for
ineligibility.
County Supplemental Tax Credits
Supplemental tax credits are available to
eligible homeowners in Anne Arundel Co.,
Baltimore City, Baltimore Co., Calvert Co.,
Caroline Co., Carroll Co., Charles Co.,
Frederick Co., Garrett Co., Harford Co.,
Howard Co., Kent Co., Montgomery Co., and
Washington Co. The supplemental tax credits
are administered by the State of Maryland
Homeowners’ Tax Credit Program. To apply for
the state tax credit and/or county supplemental
tax credit, applicants are only required to
submit this application form (Form HTC-1).
Some applicants may be eligible for a
supplemental tax credit even though they may
be ineligible for a State credit based on
income.
Privacy and State Data System Security
Notice
The principal purpose for which this information
is sought is to determine your eligibility for a tax
credit. Failure to provide this information will
result in a denial of your application. Some of
the information requested would be considered
a “Personal Record” as defined in State
Government Article, § 10-624 consequently,
you have the statutory right to inspect your file
and to file a written request to correct or amend
any information you believe to be inaccurate or
incomplete. Additionally, it is unlawful for any
officer or employee of the state or any political
subdivision to divulge any income particulars
set forth in the application or any tax return
filed except in accordance with judicial
legislative order. However, this information is
available to officers of the state, county or
municipality in their official capacity and to
taxing officials of any other state, or the federal
government, as provided by statute.
INSTRUCTIONS FOR COMPLETING THE
APPLICATION
Please Print Clearly
Do Not Staple Documents
Do Not Send Original Documents
Applicant Details
Field 1: Name - Enter the full legal name of
applicant (last name, first name, middle initial).
Applicant must own or have a legal interest in
the property.
Field 2: Social Security Number - Enter
applicant’s nine (9) digit Social Security
Number.
Field 3: Date of Birth - Month, Day, and Year
the applicant was born.
Field 4: Mailing Address - Enter the address
the applicant would like mail sent to if it differs
from the property address. Applicant must
include an explanation on a separate sheet of
paper.
Field 5: Current Marital Status - Check or mark
which option best describes the applicant’s
current status: single; or provide the month and
date for: married, separated, divorced
(finalized) or widowed.
Field 6: Enter the full legal name of Spouse
and/or Residential Co-Owner (last name, first
name, middle initial). Residential Co-Owner
must own or have a legal interest in the
property. If more space is needed, enter
information on a separate sheet of paper and
include with this application.
