Income Tax Offset Credit (ITOC)

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Income Tax Offset Credit (ITOC)

Don’t lose your $692 tax credit!

Montgomery County’s Income Tax Offset Credit (ITOC) program grants County residents who live in the property they own a $692 credit.

The State law changed. To receive the ITOC, residential property owners must now have a Homestead Tax Credit (HTC) on file with the Maryland State Department of Assessments and Taxation (SDAT) as of May 1, 2023. If a property owner received the credit on their 2022 property tax bill and did not apply before the deadline, they will be billed $692 and will not receive the tax credit on future bills until the State processes their application. Once the application is on file, it will automatically apply to future years.

Deadline: May 1, 2023

Step 1: Check if you have already filed a Homestead Application.

Don’t assume that you already have a homestead application on file. Our records indicate over 85,000 properties do not currently have a Homestead application on file and are at risk for losing the credit.
1. Go to https://sdat.dat.maryland.gov/RealProperty/.
  1. Select “Montgomery County” in the first drop down menu (as shown)
  2. Choose your preferred method in the second drop down menu to find your property.
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2. Once you get to your information, scroll to the bottom and look for “Homestead Application Status:” (highlighted in green below).
  - If it says, Approved, or Application Received, you do not need to apply again and do not need to continue to Step 2.
  - If it says, No application, you need to apply. Please continue to Step 2.
  Do not confuse this with the “Homeowner’s Tax Credit Application Information,” which is something completely separate.
  
  You only need to apply once. You DO NOT need to apply every year.
  
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Step 2: Apply for a Homestead Application (if Step 1 showed, “No Application”)

Only complete Step 2 if the information on your property from Step 1 says, “Homestead Application Status: No Application.”
1. Find your Real Property Account Number and Access Number. You will need both numbers to file a Homestead application online. To file a Homestead application by mail, you only need the Real Property Account Number.
  1. If you received a letter from SDAT, find the numbers at the top of the letter.
  2. If you did not receive a letter from SDAT, find your Real Property Account Number at the top of the Real Property search from Step 1 (outlined in green below), then ask for your Access Number by emailing your name, Real Property Account Number, and address to sdat.homestead@maryland.gov. Use this email subject line: " Montgomery County Homestead Tax Credit".
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2. Once you have both your Real Property Account Number and Access Number, there are two ways you can file an application. You only need to do a. OR b.
  1. Online: Go to Homestead Tax Credit Eligibility Application page, and complete the online form. Filing an online application will be faster than mailing one in. Once you submit the form, you’re done!
  2. Mail: Go to Homestead Tax Credit Eligibility Application page, and find the “Paper Application” section. Download and print the form, or request a paper copy by phone. After completing the application, mail it to the address on the second page of the form, and you’re done!
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