Qualifying For State Tax Relief

State tax relief is available for many people who need it. Here are a few programs that may be available for your area and need.

College Expenses

There are programs available both through state and the federal government that can offer tax relief for those paying for college expenses. Parents who are paying tuition costs for their children can typically write off the interest paid on the loans. Additionally, the "Hope credit" allows those paying for college to take a $1500 credit for the first two years the student is in school. States will often offer separate programs to help offset the expansive costs of college. To check qualifications for these programs you can contact the financial department of you college.

Property Tax Relief

In many states you may be able to get a break on your property taxes. In general this is available to those who have experienced a hardship or when property values have decreased significantly. The credits given for this will usually max out at $1000, and can only be claimed once or twice in a lifetime. Each state will have different qualification requirements, you will want to check with your local property tax office for information.

Innocent Spouse Relief

If you are faced with a situation where your spouse owes taxes and you had no knowledge of any taxes being unpaid, the IRS will end up going after the spouse of the person who owes does not pay. The innocent spouse relief program was created to help alleviate being unfairly taxed for someone else’s bad decisions. To qualify for this you will need to fill out forms, both for the state and federal levels. A letter will need to be drafted explaining why you are innocent of these taxes. The approval process can be extensive and long, be patient and follow of the steps given to you regarding forms to fill out and deadlines.

Victims of Natural Disasters

If you had to deal with the aftermath of a flood, tornado, hurricane, or other state emergency you may be eligible for a tax relief credit through the state. You will need to have documentation of your losses and file all the necessary paperwork through the state. Sometimes the credits are issued in the form of money from the state that doesn’t need to be paid back, and other times the credits are offered when you file your taxes. You will want to check with the state's emergency funding departments and tax offices to see what needs to be done to qualify for any natural or state emergency tax relief.

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