Expanded Disabled Veteran Homestead Property Tax Credit

June 26, 2014

Expanded Disabled Veteran Homestead Property Tax Credit Filing Deadline Nears

Des Moines, Iowa -- The Iowa Department of Revenue reminds qualified taxpayers that they need to submit an application for the Disabled Veteran Homestead Property Tax Credit (“the Credit”) by the July 1, 2014 deadline in order to receive the Credit for the property taxes which will be payable in 2015 and 2016.
2014 Iowa Acts Senate File 2352 modified the existing Credit by eliminating the income limitation and expanding eligibility to include any eligible veteran, including former members of the National Guard of any state, with a total service-connected disability as certified by the U.S. Department of Veterans Affairs. The bill also extended eligibility to surviving spouses or children that meet specified criteria.

Due to the changes enacted in Senate File 2352 all qualified taxpayers need to apply for the Credit by July 1, 2014 even if they are already receiving the Credit.  To claim the credit, qualified taxpayers should complete the newly revised Application for Disabled Veteran’s Homestead Tax Credit Form (Iowa Department of Revenue Form 54-049a) which is available on the Iowa Department of Revenue’s website (www.iowa.gov/tax) and the Iowa Department of Veterans Affairs website (Forms/Applications).

Once the form has been completed it should be submitted to the local assessor’s office.  Taxpayers must submit the Benefits Paid Letter along with the application. The Letter may be obtained by contacting the US Veterans Affairs office at 1-800-827-1000, visiting a US Veterans Affairs office, or through the veteran’s E-benefits account online.

The Department of Revenue and the Department of Veterans Affairs are aware that some veterans are experiencing delays in obtaining their Benefits Paid Letters.  As such, the Director of the Department of Revenue, Courtney Kay-Decker, has directed county and city assessors to accept Benefits Paid Letters as supporting documentation for completed applications up to September 2, 2014. 

Applications for the credit must still be received by the July 1, 2014 deadline in order for the credit to apply to the taxes payable in 2015 and 2016.  Going forward, qualified taxpayers must reapply for the Credit each year in order to certify that they still meet the Credit’s eligibility criteria.

The mission of the Iowa Department of Revenue is to serve Iowans and support state government by collecting all taxes required by law, but no more.

Contact: Victoria L. Daniels, Iowa Department of Revenue, 515.281.8450