Here are several types of special situations that may apply to your homestead declaration claim. If you cannot find the information you are looking for or if you have questions about a special situation, please contact us.
Property Tax Credit: An estate cannot make a Property Tax Credit on behalf of a deceased homeowner. If a homeowner files a Property Tax Credit, but dies prior to April 1, the estate must withdraw the claim using Form HS-122W. The estate is responsible to repay any adjustment issued. If the homeowner filed a Property Tax Credit between January and March 31 and dies after April 1, the commissioner may pay the adjustment to the town on behalf of another member of the household with ownership interest.
An estate may continue classification of the property as a homestead until the following April provided the property was the deceased homeowner’s homestead at the time of death and the property is not rented.
Learn more about filing estate and fiduciary returns.
Delinquent Property Tax
The property tax credit applies to the current year property tax. The municipality may use any remaining adjustment towards penalty, interest, or prior year property taxes.
Nursing Home or Residential Care
If the homeowner is age 62 or older and another owner who also lived in the homestead is the homeowner’s spouse/civil union partner or sibling and has moved indefinitely from the homestead to a nursing home or residential care facility, the homeowner makes the Property Tax Credit claim with 100% ownership.
This is provided that the spouse/civil union partner or sibling does not make a Renter Rebate Claim or the spouse/ civil union partner or sibling does not make a Property Tax Credit claim for the same homestead. If the homeowner has moved to a nursing home or residential care facility, a Property Tax Credit claim may be made if there is a reasonable likelihood that the homeowner will be returning to the homestead and provided that the homeowner does not make a Renter Rebate Claim. The Department may ask for a doctor’s certificate to help determine whether the nursing home or residential care facility is a temporary location.
Injured Spouse Claims
To make an injured spouse claim, send the following information prior to filing your claim;
- The request letter
- Copy of Form 8379 (if you filed this form with the IRS); and,
- Documentation of your ownership interest.
Please mail your claim to:
Vermont Department of Taxes
ATTN: Injured Spouse Unit
PO Box 1645
Montpelier VT, 05601-1645
The Department will notify you if the property tax credit is taken to pay a bill. You have 30 days from the date on the notice to submit the injured spouse claim to the Department.
A dwelling owned by a trust is not the homestead of the beneficiary unless The claimant is the sole beneficiary of the trust and:
- The claimant or the claimant's spouse was the grantor of the trust, and the trust is revocable or became irrevocable solely by reason of the grantor's death, or
- The claimant is the parent, grandparent, child, grandchild or sibling of the grantor, the claimant is mentally disabled or severely physically disabled, and the grantor's modified adjusted gross income is included in the household income calculation.
The term sole beneficiary is satisfied if the homeowner and the spouse/civil union partner are the only beneficiaries of the trust. A property owned by an irrevocable trust cannot be a homestead except as stated in (1) above. The trust document does not have to be attached to the Property Tax Credit claim but must be available for review upon Department request.
A person who holds a life estate interest in a property that he or she occupies as a principal residence may make a Property Tax Credit claim as if the life estate holder was the owner of the property. The deed does not have to be attached to the Property Tax Credit claim but must be available for review upon Department request.
Homestead Property Crossing Town Boundaries
You will need to file a separate Vermont Homestead Declaration in each town.
Residing in A Dwelling Owned By A Related Farmer
If a dwelling is owned by a farmer or farm corporation, the dwelling is on the farm property, and it is occupied by a parent, child, sibling or grandchild of the farmer as his or her principal residence, the dwelling is a homestead. The person(s) occupying the property as his or her principal residence files his or her own declaration and uses the School Parcel Account Number (SPAN) on the property tax bill.
For corporate ownership, together the related parties (parent, child, sibling or grandchild) must own more than 50% of the corporate stock to be eligible to claim a homestead. The person(s) occupying the property as his or her principal residence files his or her own declaration.