Official Illinois Ptax 340 Form in PDF Open Editor

Official Illinois Ptax 340 Form in PDF

The Illinois PTAX-340 form is an application for the Senior Citizens Assessment Freeze Homestead Exemption. This exemption helps eligible seniors keep their property’s assessed value from increasing, thereby providing some financial relief on property taxes. Understanding the requirements and process for this form is essential for seniors looking to benefit from this valuable program.

Open Editor
Navigation

The Illinois PTAX-340 form, officially known as the Senior Citizens Assessment Freeze Homestead Exemption Application and Affidavit, plays a crucial role in helping eligible senior citizens manage their property taxes. This form allows qualifying seniors to freeze the equalized assessed value (EAV) of their homes, preventing increases due to inflation. To apply, individuals must provide essential information, including their personal details, property address, and household income. The application process requires reporting the total income of all household members, ensuring that it does not exceed the specified threshold of $65,000. Additionally, the form includes an affidavit where applicants affirm their eligibility and the use of the property as their principal residence. Timeliness is key, as applicants must submit the PTAX-340 by the designated deadline to secure their exemption for the upcoming tax year. Understanding the requirements and steps outlined in the PTAX-340 is vital for seniors looking to benefit from this financial relief program.

Frequently Asked Questions

What is the Illinois PTAX-340 form?

The Illinois PTAX-340 form is an application for the Senior Citizens Assessment Freeze Homestead Exemption. This exemption allows eligible senior citizens to have their home's equalized assessed value (EAV) frozen at a base year value, which helps prevent or limit increases in property taxes due to inflation. By applying for this exemption, seniors can potentially save money on their property taxes, as the amount of the exemption is the difference between the base year EAV and the current year's EAV.

Who is eligible to apply for the Senior Citizens Assessment Freeze Homestead Exemption?

To qualify for this exemption, applicants must meet several criteria. First, you must be 65 years of age or older during the year of application. Second, your total household income for the previous year must be $65,000 or less. Additionally, you must have used the property as your principal residence and owned it or had a legal interest in it as of January 1 of both the current and previous year. If you are a surviving spouse of someone who would have qualified, you may also be eligible, even if you are not yet 65.

What types of income should be included when calculating household income?

Household income encompasses the income of you, your spouse, and all other individuals living in your household. This includes various sources such as wages, Social Security benefits, pensions, rental income, and government assistance. It is important to note that certain types of income, like cash gifts or child support, should not be included. The form provides detailed instructions on what to include and exclude, ensuring that applicants can accurately report their household income.

How do I file the PTAX-340 form, and when is it due?

To file the PTAX-340 form, you must complete it and submit it to your Chief County Assessment Officer (CCAO) by the deadline specified on the form. It is crucial to file this form every year to continue receiving the exemption, as eligibility can change from year to year. Be sure to check for any additional documentation that may be required, such as tax returns or proof of age, as the CCAO may request this information to verify your eligibility.

Will my personal information remain confidential if I apply for this exemption?

Yes, all information provided on the PTAX-340 form is considered confidential. It is used solely for official purposes related to the assessment freeze exemption. This confidentiality helps protect applicants' personal data while allowing the authorities to verify eligibility and administer the exemption appropriately.

Form Specifications

Fact Name Description
Form Purpose The PTAX-340 form is used to apply for the Senior Citizens Assessment Freeze Homestead Exemption in Illinois.
Eligibility Age Applicants must be 65 years of age or older during the year they apply for the exemption.
Income Limit The total household income must not exceed $65,000 for the year prior to application.
Application Deadline The last date to apply for the exemption is specified on the form and varies each year.
Property Ownership Applicants must own the property or have a legal or equitable interest in it to qualify.
Governing Law The exemption is governed by the Illinois Property Tax Code, specifically 35 ILCS 200/15-172.
Filing Requirement Applicants must file the PTAX-340 form annually to continue receiving the exemption.
Verification Process The Chief County Assessment Officer may conduct audits to verify eligibility for the exemption.
Confidentiality Information provided on the PTAX-340 form is confidential and used only for official purposes.

Common mistakes

  1. Incorrect Personal Information: Many applicants fail to provide accurate personal information, such as their full name, mailing address, or date of birth. This can lead to delays or even denial of the application.

  2. Missing Property Details: Not including the correct street address or parcel index number (PIN) of the property can create confusion. It's essential to verify these details against your property tax bill.

  3. Inaccurate Income Reporting: Some applicants mistakenly report their household income. This includes failing to include all sources of income, such as Social Security, pensions, or rental income. Omitting any income can result in disqualification.

  4. Failure to Answer Key Questions: Skipping questions in Part 2 regarding prior exemptions or the spouse’s application status can lead to complications. Each question is designed to clarify eligibility.

  5. Not Signing the Affidavit: It’s crucial to sign the affidavit at the end of the form. A missing signature can render the application invalid, even if all other information is correct.

  6. Missing the Deadline: Applicants often overlook the application deadline. Submitting the form late can mean missing out on the exemption for that tax year.

Form Preview

PTAX-340 2023 Low-Income Senior Citizens Assessment Freeze Homestead Exemption Application and Affidavit

Last date to apply: ______________________________________

Part 1: Applicant information (Please type or print.)

1

____________________________________________________________

3 ____________________________________________

 

First name

MI

Last name

 

 

Tax ID number

 

 

2

____________________________________________________________

4

____ ____ /____ ____ /____ ____ ____ ____

 

Mailing address

 

 

 

 

Date of birth (month, day, year)

 

 

____________________________________________________________

5

(

)

-

_____________________

 

______________________

 

City

 

State

ZIP

 

Area code and phone number

Email address

Part 2: Property information

1_____________________________________________________________________________________________________________

Street address of property for which this exemption application is filedTownship

__________________________________________

IL ______________________________________________________________

City

ZIP

County

2____________________________________________________________

Property (parcel) index number (PIN)

Note: The PIN is shown on your property tax bill. You also may obtain it from your chief county assessment officer

(CCAO). If you cannot obtain the PIN, attach a copy of the legal description.

3

Have you or your spouse received this exemption for this property previously?

____ Yes

____ No

 

If you answered “Yes”, write the base year, if known.

____ ____ ____ ____

4

If your spouse maintains a separate residence, has he or she applied for this exemption?

____ Yes

____ No

Part 3: Household income for 2022

You must include the income of you, your spouse, and all other individuals who live in your household.

1

Social Security and SSI benefits. Include Medicare deductions in this total.

1

__________________|______

2

Railroad Retirement benefits. Include Medicare deductions in this total.

2

__________________|______

3

Civil Service benefits

3

__________________|______

4

Annuities, federally taxable pensions and retirement plan distributions.

4

__________________|______

5

Human Services and other governmental cash public assistance benefits

5

__________________|______

6

Wages, salaries, and tips from work

6

__________________|______

7

Interest and dividends received

7

__________________|______

8

Net rental, farm, and business income or (loss). (See instructions for Line 8.)

8

__________________|______

9

Net capital gain or (loss). (See instructions for Line 9.)

9

__________________|______

10

Other income or (loss). (See instructions for Line 10.)

10 __________________|______

11

Add Lines 1 through 10.

11 __________________|______

12Certain subtractions. You may subtract only the reported adjustments to income from U.S. 1040, Schedule 1, Line 26.

Subtraction item

Amount

12a_______________________________________________ __________________|______

12b_______________________________________________ __________________|______

Add the amounts on Lines 12a and 12b, and write the result.

12 __________________|______

13Subtract Line 12 from Line 11, and write the result. This is your total household income

for 2022. If the amount is greater than $65,000, STOP. You do not qualify for this exemption.13__________________|______

 

 

Do not write in this space.

 

Date received

___________________

Income verified

____ Yes ____No

Application number

___________________

Base year EAV

$__________________

Base year

___ ___ ___ ___

Revised base year EAV

$__________________

Revised base year

___ ___ ___ ___

EAV of added improvements

$__________________

Approved

____Yes ____No

Base amount

$__________________

PTAX-340 (R-12/22)

1 of 4

Part 4: Affidavit

Sworn under oath, I state the following:

1(Mark the statement that applies.)

On January 1, 2023, the property identified in Part 2, Line 1, was improved with a permanent structure a ____ that I used as my principal residence.

b ____ for which I received this exemption previously and is either unoccupied or used as my spouse’s principal residence. I am now a resident of a facility licensed under the Assisted Living and Shared Housing Act, Nursing Home Care Act, ID/DD (intellectually disabled/developmentally disabled) Community Care Act, or Specialized Mental Health Rehabilitation Act of 2013.

_______________________________________

_________________________________________________

Name of facility

Mailing address

2(Mark the statement that applies.)

On January 1, 2023, I

a ____ was the owner of record of the property identified in Part 2, Line 1.

b ____ had a legal or equitable interest by a written instrument in the property listed in Part 2, Line 1.

c ____ had a leasehold interest in the property identified in Part 2, Line 1, that was used as a single-family residence.

3I am liable for paying real property taxes on the property identified in Part 2, Line 1.

Note: If I have not received this exemption for this property previously, I also met the eligibility requirements listed in Part 4, Lines 1, 2, and 3 for this property on January 1, 2022.

4(Mark the statement that applies.)

a ____ In 2023, I am, or will be, 65 years of age or older.

b ____ In 2023, my spouse, who died in 2023, would have been 65 years of age or older. (Complete the following information.)

_____________________________________________

__________________________________________________

Deceased spouse’s name

Tax ID number

____ ____ /____ ____ /____ ____ ____ ____

____ ____ /____ ____ /____ ____ ____ ____

Date of birth (month, day, year)

Date of death (month, day, year)

5The property identified in Part 2, Line 1, is the only property for which I am applying for a low-income senior citizens assessment freeze homestead exemption for 2023.

6The amount reported in Part 3, Line 13, of this form includes the income of my spouse and all persons living in my household and the total household income for 2022 is $65,000 or less.

7On January 1, 2023, the following individuals also used the property identified in Part 2, Line 1, for their principal residence.

My spouse is included if he or she used the property as his or her principal dwelling place on January 1, 2023. The total income of all individuals and my spouse (regardless of his or her principal residence) are included in Part 3. (Attach an

additional sheet if necessary.)

First and last name

Tax ID number

a __________________________________________________

__________________________________________________

b __________________________________________________

__________________________________________________

8(Mark the statement that applies.) On January 1, 2023, I was

a ____ single, widow(er), or divorced. b ____ married and living together. c ____ married, but not living together.

My spouse’s name and address is _____________________________________________________________________________

First nameMILast name

_____________________________________________________________________________________________________________

Street Address

City

State

ZIP

Under penalties of perjury, I state that, to the best of my knowledge, the information contained in this affidavit is true, correct, and complete.

_______________________________________ ____ ____/____ ____/____ ____ ____ ____

Signature of applicant

Date (month, day, year)

Note: The CCAO may conduct an audit to verify that the taxpayer is eligible to receive this exemption.

Mail your completed Form PTAX-340 to:

If you have any questions, please call:

_________________Co. Chief County Assessment Officer

(_________)__________________________________________

 

 

_______________________________________________________

Last date to apply ___ ___/___ ___/___ ___ ___ ___

Mailing address

Month Day

Year

____________________________________IL _________________

CityZIP

This form is authorized in accordance with the Illinois Property Tax Code. Disclosure of this information is required. Failure to provide information may result in this form not being processed and may result in a penalty.

2 of 4

Printed by the authority of the state of Illinois-Web only-1

PTAX-340 (R-12/22)

Form PTAX-340 General Information

What is the Low-Income Senior Citizens Assessment Freeze Homestead Exemption (SCAFHE)?

The Low-Income Senior Citizens Assessment Freeze Homestead

Exemption (35 ILCS 200/15-172) allows you, as a qualified senior

citizen, to have your home’s equalized assessed value (EAV) “frozen” at a base year value and prevent or limit any increase due to inflation. The base year generally is the year before the year you first qualify and apply for the exemption. For example, if you first qualify and

apply in 2023, your property’s EAV will be “frozen” at the 2022 EAV.

The amount of the exemption is the difference between your base

year EAV and your current year EAV. For Cook County only, the

amount of the exemption is the difference between your base year

EAV and your current year EAV or $2,000, whichever is greater.

Freezing your property’s EAV does not mean that your property taxes will not increase, however. Other factors also affect your tax bill. For

example, your tax bill could increase if the tax rate, which is based on the amount of revenues taxing districts request, increases. Your EAV and tax bill may also increase if you add improvements to your home.

However, if your home’s EAV decreases in the future, you will benefit

from any reduction.

Who is eligible?

The low-income senior citizens assessment freeze homestead exemption qualifications for the 2023 tax year (for the property taxes

you will pay in 2024), are listed below.

You will be 65 or older during 2023.

Your total household income in 2022 was $65,000 or less.

On January 1, 2022, and January 1, 2023, you

used the property as your principal place of residence,

owned the property, or had a legal or equitable interest in the property as evidenced by a written instrument, or had a leasehold interest in the property used as a single-family residence, and

were liable for the payment of property taxes.

You do not qualify for this exemption if your property is assessed under the mobile home privilege tax.

Surviving spouse Even if you are not 65 or older during 2023, you are eligible for this exemption for 2023 (and possibly 2022) if your spouse died in 2023 and would have met all of the qualifications.

Residents in a health facility Even if you did not use the property as your principal place of residence on January 1, 2023, you qualify for this exemption if you are a resident of a facility licensed under the Assisted Living and Shared Housing Act, Nursing Home Care Act, ID/DD (intellectually disabled/developmentally disabled) Community Care Act, or Specialized Mental Health Rehabilitation Act of 2013 and you meet all other requirements, have received this exemption previously, and your property is either unoccupied or is occupied by your spouse.

Residents of cooperatives If you are a resident of a cooperative apartment building or cooperative life-care facility, you qualify for this exemption if you are liable for the payment of the property taxes on your residence and meet the other eligibility requirements.

What is a household?

A household includes you, your spouse, and all other persons who used your residence as a principal dwelling place on January 1, 2023.

What is included in household income?

Household income includes your income, your spouse’s income, and the income of all individuals living in the household. Examples of

income that must be included in your household income are listed below. (For specific questions, see Part 3 on Page 4.)

alimony or maintenance received

annuities and other pensions

Black Lung benefits

business income

capital gains

cash assistance from the Illinois Department of Human Services and other governmental cash public assistance

cash winnings from such sources as raffles and lotteries

Civil Service benefits

damages awarded in a lawsuit for nonphysical injury or sickness (for example, age discrimination or injury to reputation)

dividends

farm income

Illinois Income Tax refund (only if you received Form 1099-G)

interest

interest received on life insurance policies

long term care insurance (federally taxable portion only)

lump sum Social Security payments

miscellaneous income, such as from rummage sales, recycling aluminum, or baby sitting

military retirement pay based on age or length of service

monthly insurance benefits

pension and IRA benefits (federally taxable portion only)

Railroad Retirement benefits (including Medicare deductions)

rental income

Social Security income (including Medicare deductions)

Supplemental Security Income (SSI) benefits

all unemployment compensation

wages, salaries, and tips from work

Workers’ Compensation Act income

Workers’ Occupational Diseases Act income

What is not included in household income?

Some examples of income that are not included in household income

are listed below. (For specific income questions, see Part 3 on

Page 4.)

cash gifts

child support payments

COBRA subsidy payments

damages awarded in a lawsuit for a physical personal injury or sickness

Energy Assistance payments

federal income tax refunds

IRA’s “rolled over” into other retirement accounts, unless “rolled over” into a Roth IRA

lump sums from inheritances

lump sums from insurance policies

money borrowed against a life insurance policy or from any financial institution

reverse mortgage payments

spousal impoverishment payments

stipends from Foster Parent and Foster Grandparent programs

Veterans’ benefits

What if I have a net operating loss or capital loss carryover from a previous year?

You cannot include any carryover of net operating loss or capital loss from a previous year. You can include only a net operating loss or capital loss that occurred in 2022.

Will my information remain confidential?

All information received from your application is confidential and may be used only for official purposes.

When must I file?

File Form PTAX-340 with the CCAO by the due date printed on the bottom of Page 2. You must file Form PTAX-340 every year and meet the qualifications for that year to continue to receive the

exemption.

Note: The CCAO may require additional documentation

(i.e., birth certificates, tax returns) to verify the information in this

application.

What if I need additional assistance?

If you have questions about this form, please contact your CCAO, also known as the supervisor of assessments, or county assessor, at the address and phone number printed at the bottom of Page 2.

PTAX-340 (R-12/22)

3 of 4

Form PTAX-340 Step-by-Step Instructions

Part 1: Applicant information

Lines 1 through 5 – Type or print the requested information.

Part 2: Property information

Lines 1 and 2 – Identify the property for which this application is filed.

Lines 3 and 4 – Answer the questions by marking an “X” next to your statement. If you answered “Yes” to the question on Line 3 and you know the base year, write it in the space provided.

Part 3: Household income for 2022

“Income” for this exemption means 2022 federal adjusted gross income, plus certain items subtracted from or not included in your federal adjusted gross income (320 ILCS 25/3.07). These include tax-exempt interest, dividends, annuities, net operating

loss carryovers, capital loss carryovers, and Social Security benefits. Income also includes public assistance payments from

a governmental agency, SSI, and certain taxes paid. These Step-by-Step Instructions provide federal return line references and reporting statement references, whenever possible.

The amounts written on each line must include the 2022 income for you, your spouse, and all the other individuals living in the household.

As an alternative income valuation, a homeowner who is enrolled in any of the following programs may be presumed to have household income that does not exceed the maximum income limitation for that tax year: Aid to the Aged, Blind or Disabled (AABD) Program or the Supplemental Nutrition Assistance Program (SNAP), both of which are administered by the Department of Human Services; the Low Income Home Energy Assistance Program (LIHEAP), which is administered by the Department of Commerce and Economic

Opportunity; The Benefit Access program, which is administered by

the Department on Aging; and the Senior Citizens Real Estate Tax Deferral Program.

Line 1 – Social Security and Supplemental Security Income (SSI) benefits

Write the total amount of retirement, disability, or survivor’s benefits (including Medicare deductions) the entire household received from

the Social Security Administration (shown on Form SSA-1099, box

3 or use box 5 only if there is a reduction of benefits). You also must

include any Supplemental Security Income (SSI) the entire household received and any benefits to dependent children in the household.

Do not include reimbursements under Medicare/Medicaid for medical expenses.

Note: The amount deducted for Medicare is already included in the amount in box 3 of Form SSA-1099.

Line 2 – Railroad Retirement benefits

Write the total amount of retirement, disability, or survivor’s benefits (including Medicare deductions) the entire household received under the Railroad Retirement Act (shown on Forms SSA-1099 and RRB-1099).

Line 3 – Civil Service benefits

Write the total amount of retirement, disability, or survivor’s benefits the entire household received under any Civil Service retirement plan (shown on Form 1099-R).

Line 4 – Annuities and other retirement income

Write the total amount of income the entire household received as an annuity from any annuity, endowment, life insurance contract, or similar contract or agreement (shown on Form 1099-R). Include only the federally taxable portion of pensions, IRAs, and IRAs converted to Roth IRAs (shown on U.S. 1040, Line 4b). IRAs are not taxable when “rolled over,” unless “rolled over” into a Roth IRA.

Line 5 – Human Services and other governmental cash public assistance benefits

Write the total amount of Human Services and other governmental cash public assistance benefits the entire household received. If the first two digits of any member’s Human Services case number are the

same as any of those in the following list, you must include the total

amount of any of these benefits on Line 5.

01

aged

04 and 06 temporary assistance to

02

blind

needy families (TANF)

03

disabled

07 general assistance

To determine the total amount of the household benefits, multiply the

monthly amount each person received by 12. You must adjust your figures accordingly if anyone in the household did not receive 12

equal checks during this period.

Food stamps and medical assistance benefits anyone in the house- hold may have received are not considered income and should not be added to your total income.

Line 6 – Wages, salaries, and tips from work

Write the total amount of wages, salaries, and tips from work for every household member (shown in box 1 of Form W-2).

Line 7 – Interest and dividends received

Write the total amount of interest and dividends the entire household received from all sources, including any government sources (shown on Forms 1099-INT, 1099-OID, and 1099-DIV). You must include both taxable and nontaxable amounts.

Line 8 – Net rental, farm, and business income or (loss)

Write the total amount of net income or loss from rental, farm, business sources, etc., the entire household received, as allowed on

U.S. 1040, Schedule 1, Lines 3, 5, and 6. You cannot use any net operating loss (NOL) carryover in figuring income.

Line 9 – Net capital gain or (loss)

Write the total amount of taxable capital gain or loss the entire household received in 2022, as allowed on U.S. 1040, Line 7 and

U.S. 1040, Schedule 1, Line 4. You cannot use a net capital loss carryover in figuring income.

Line 10 – Other income or (loss)

Write the total amount of other income or loss not included in Lines 1 through 9, that is included in federal adjusted gross income, such as alimony received, unemployment compensation, taxes withheld from oil or gas well royalties. You cannot use any net operating loss

(NOL) carryover in figuring income.

Line 11 – Add Lines 1 through 10.

Line 12 – Subtractions

You may subtract only the reported adjustments to income totaled on U.S. 1040, Schedule 1, Line 26. For example:

IRA deduction

educator expenses

Archer MSA deduction

tuition and fees

student loan interest

domestic production

deduction

activities deduction

jury duty pay you gave to your

deductible part of

employer

self-employment tax

penalty on early withdrawal of

self-employed health

savings

insurance deduction

self-employed SEP, SIMPLE,

health savings account

and qualified plans

deduction

alimony or maintenance paid

moving expenses

Line 13 – Total household income

Subtract Line 12 from Line 11. If this amount is greater than $65,000, you do not qualify for this exemption. See Page 3.

Part 4: Affidavit

Lines 1 through 4 – Mark the item that applies. Read the affidavit

carefully. The statements must apply.

Line 7 – Write the names and tax identification numbers of the

individuals, other than yourself, who used the property for their principal residence on January 1, 2023. Attach an additional sheet if necessary.

Line 8 – Follow the instructions on the form. If your spouse does not reside at this property, be sure to write his or her name and address.

Note: You must sign your Form PTAX-340 before you file it with

your CCAO. Return your completed Form PTAX-340 to your CCAO’s

office or mail it to the address printed on the bottom of Page 2.

4 of 4

PTAX-340 (R-12/22)

Dos and Don'ts

When filling out the Illinois PTAX-340 form, it is essential to follow specific guidelines to ensure a smooth application process. Here are four things you should do and four things you should avoid:

  • Do provide accurate information: Ensure that all personal and property details are correct. This includes your name, address, and the property for which you are applying.
  • Do include all household income: Report the total income for everyone living in your household. This includes your income, your spouse's income, and any other individuals who reside with you.
  • Do check for eligibility: Confirm that you meet all the qualifications for the Senior Citizens Assessment Freeze Homestead Exemption before submitting the form.
  • Do submit your application on time: Make sure to file the PTAX-340 form by the deadline indicated on the form to avoid missing out on the exemption.
  • Don't leave any sections blank: Fill out every part of the form completely. Incomplete forms can lead to delays or denial of your application.
  • Don't forget to sign the affidavit: Your signature is required to validate the information provided. Without it, your application may not be processed.
  • Don't include ineligible income: Be careful not to report income that is not considered part of your household income, such as child support or cash gifts.
  • Don't ignore instructions: Pay close attention to the instructions on the form. Following them carefully can help prevent mistakes that could affect your application.

Documents used along the form

The Illinois PTAX-340 form is essential for senior citizens seeking to apply for the Senior Citizens Assessment Freeze Homestead Exemption. Along with this form, several other documents may be necessary to support the application and ensure eligibility. Below is a list of commonly used forms and documents that often accompany the PTAX-340.

  • Property Tax Bill: This document provides the property’s parcel index number (PIN) and details the assessed value of the property. It serves as a reference point for verifying ownership and tax responsibilities.
  • Proof of Age: A birth certificate or government-issued ID may be required to confirm that the applicant is 65 years of age or older, which is a key eligibility criterion for the exemption.
  • Income Verification Documents: These can include tax returns, Social Security statements, or other income documentation. They help establish the total household income, ensuring it meets the required threshold of $65,000 or less.
  • Trailer Bill of Sale: Essential for the transfer of ownership of a trailer, this document legitimizes the sale process and can be found at https://templates-guide.com/california-trailer-bill-of-sale-template/.
  • Affidavit of Residency: If applicable, this document confirms the applicant's primary residence status. It may be necessary for those who have moved to assisted living facilities or similar accommodations.

Gathering these documents can streamline the application process and help ensure that all eligibility requirements are met. It’s important to keep copies of everything submitted for personal records and future reference.

Misconceptions

  • Misconception 1: You can apply for the exemption at any time during the year.
  • Actually, there is a deadline for applying. You must submit your application by the specified date on the form to be considered for the exemption.

  • Misconception 2: Only homeowners can apply for the Senior Citizens Assessment Freeze Homestead Exemption.
  • This is not true. Residents of cooperative apartments or those with leasehold interests may also qualify, as long as they meet the other eligibility criteria.

  • Misconception 3: You can ignore income from all household members when calculating total household income.
  • In fact, you must include the income of everyone living in your household, including your spouse, to determine eligibility.

  • Misconception 4: If your income exceeds $65,000 one year, you are permanently disqualified from the exemption.
  • This is incorrect. You only need to meet the income requirement for the year you are applying. If your income drops below the threshold in a future year, you can reapply.

  • Misconception 5: You can apply for the exemption even if you do not use the property as your primary residence.
  • To qualify, the property must be your principal place of residence on January 1 of the year you are applying for the exemption.

  • Misconception 6: The exemption freezes your property taxes at their current amount.
  • This is misleading. The exemption freezes the assessed value of your property, not your taxes. Other factors can still cause your tax bill to increase.

  • Misconception 7: Once approved, you do not need to reapply for the exemption each year.
  • You must file the PTAX-340 form every year to maintain your eligibility for the exemption. Failing to do so can result in losing the benefit.