576: 2024 Form 576 Natural Disaster Tax Credit for Residential Real Property Owners Only (2024)
Oklahoma · Oklahoma Tax Commission · Used for tax years 2024
Oklahoma Form 576 calculates a refundable income tax credit for residential real property owners whose primary residence was damaged or destroyed by a qualifying natural disaster. It records property and disaster details and compares allowed property taxes before the damage and a
Who files this form
Form 576 is for residential real property owners claiming Oklahoma’s Natural Disaster Tax Credit for damage to or destruction of their primary residence.
To qualify:
- The damage must result from a weather or fire event for which a Presidential Major Disaster Declaration was issued.
- The property must be in a federally declared disaster area.
- The property must be the owner’s primary residence both the year before and the year after the disaster.
- The owner must have been granted, or be eligible to claim, a homestead exemption for both of those years.
- The home must be repaired or rebuilt on the same property.
- The home must be repaired or rebuilt and used as the primary residence no later than 36 months after the disaster.
You must be the owner of record for each tax year you claim the credit.
What you'll need
Have these details available to complete the form:
- Your name as shown on your income tax return and your Social Security number.
- The property address, legal description including county, and parcel identification number or account number.
- The property owners’ names, if different from the name on the return.
- The qualifying Oklahoma natural disaster and its date.
- Ad valorem property tax paid for the year before the damage and the first year after the repairs or rebuilding are complete.
- The home’s square footage before and after the disaster, if needed to adjust for an increase in size.
For your first claim, you may be asked to provide property tax bills and the home’s square footage for both comparison years to verify lines 1 and 2.
Common mistakes
- Skipping the back of the form. Read all information there before completing the fields.
- Including amounts other than property tax. Lines 1 and 2 are for ad valorem property tax only.
- Using the full tax amount after enlarging the home. If the repaired or rebuilt home is larger, divide its property tax by its current square footage, then multiply by its square footage in the year before the disaster. Enter that adjusted amount on line 1.
- Claiming after an ownership change. The credit is not allowed if the property is transferred or title is changed or conveyed.
- Not keeping a copy. Keep a copy of this form to file with your return for the next four years.
Questions people ask
Is this credit refundable?
Yes. Form 576 identifies it as a refundable credit.
How is the 2024 credit calculated?
Subtract line 2, the property tax paid for the year before the damage, from line 1, the allowed property tax paid for the first year after the improvement is complete. If the home is larger after rebuilding or repairs, adjust line 1 as directed in the form.
How long can I claim the credit?
Eligible taxpayers can claim it for five consecutive years. The 2024 form lists credits for tax years 2024 through 2028. Each year after the first, the credit is 80% of the previous year’s credit.
Where can I check whether a disaster qualifies?
The form directs you to FEMA’s website at fema.gov/disasters. Look for qualifying Oklahoma events under the declaration type “Major Disaster Declarations.”
Does transferring the property affect credits already allowed?
Credits claimed and allowed before the property transfer or title change are not affected. The credit is not allowed after the property is transferred or title is changed or conveyed.