Noteboom The Law Firm

Some Veterans Eligible For Property Tax Deduction

March 25, 2011 - Just getting assigned a Department of Veterans Affairs (VA) disability rating is a lengthy, arduous, and impressive task. VA disability ratings determine how much disability compensation veterans are awarded. What many do not realize is they do more than that. One benefit some disabled veterans are given is various property tax deductions.

Some veterans qualify for a $12,480 property tax deduction. In order to qualify for this particular tax deduction, veterans must own property appraised at less than $143,160. Additionally, veterans can qualify for this deduction one of two ways. First, they must have served honorably for a minimum of 90 days and be totally disabled, which must be recognized by a VA pension certificate but not necessarily service-related. Veterans can also qualify by being 62 years old or older, and given at least a 10% service-related disability rating.  

There is also a separate $24,960 property tax deduction available. In order to claim this deduction, veterans must have honorably served during wartime of any sort and must be, at a minimum, 10% service-related disabled.

The highest property tax deduction available is $37,440. This is offered to veterans meeting the following conditions:  

• Honorably served during wartime; and
• Is 100% service-related disabled; or
• Is 62 years old; and
• Is at least 10% service-related disabled.

There are some other stipulations the VA imposes. First, statutory disability ratings for pulmonary tuberculosis do not work toward eligibility. Becoming disabled while with the National Guard or Reserves will only be counted if the disabling event happened while on active duty and during wartime. Finally, surviving spouses are able to use the veterans' tax deduction, so you may want to talk to an accountant about what tax deductions your service may qualify you for.