HEPTC-1: Homestead Excess Property Tax Credit (2024)
West Virginia · WV Tax Division · Used for tax years 2024
West Virginia Schedule HEPTC-1 calculates the 2024 Homestead Excess Property Tax Credit for property taxes paid on an owner-occupied home. It uses property tax payments, income, and any allowable Senior Citizen Tax Credit to determine a refundable credit of up to $1,000.
Who files this form
Complete Schedule HEPTC-1 if you are claiming the 2024 Homestead Excess Property Tax Credit. The credit applies to property taxes paid on an owner-occupied home, subject to the schedule’s income limits and calculation.
For 2024, the Part I income limits are:
- 1 person living in the home: $45,180 or less.
- 2 people: $61,320 or less.
- 3 people: $77,460 or less.
- 4 people: $93,600 or less.
- For each additional person, add $16,140.
If you must file a federal return, use your federal adjusted gross income reported to the IRS for this test. If you do not have to file a federal return, use your income less Social Security benefits.
No credit is allowed if any part of the home is owned by someone who is not a low-income person. You also cannot claim this credit if you are claiming the Disabled Veterans Property Credit.
Meeting the income limits alone does not establish a credit. In Part II, your property taxes after subtracting any allowable Senior Citizen Tax Credit must exceed 4% of the total gross income calculated on the schedule.
What you'll need
To complete the schedule, have these amounts and forms available:
- Total West Virginia property tax paid on your owner-occupied home during 2024, after any discount and before interest is added.
- Federal adjusted gross income and the number of people living in your home.
- Schedule M, line 61, for increasing income modifications.
- Federal tax-exempt interest income.
- Earnings replacement insurance received in 2024, identified on the form as Workers’ Compensation Benefits.
- Social Security benefits, including SSI and SSDI, that are not included in federal adjusted gross income.
- Income of all household members who would file a separate tax return.
- Form SCTC-A, line 2, if you are eligible for the Senior Citizen Tax Credit.
You must enclose the completed HEPTC-1 schedule with Form IT-140.
How to file
Complete Part I to check the income guidelines. Complete Part II only if your income meets those guidelines.
In Part II, subtract any allowable Senior Citizen Tax Credit from the property taxes paid. Calculate total gross income using lines 4 through 6, then multiply it by 4% on line 7.
If line 3 is greater than line 7, subtract line 7 from line 3. Enter that result or $1,000, whichever is lower, on line 9 and on Form IT-140, line 19. If line 3 is not greater than line 7, stop: you are not eligible for the credit.
Enclose Schedule HEPTC-1 with Form IT-140. The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Leaving out Schedule HEPTC-1. The form warns that the credit will be disallowed if the schedule is not enclosed with Form IT-140.
- Claiming both property credits. You cannot claim this credit if you are claiming the Disabled Veterans Property Credit.
- Overlooking a co-owner’s eligibility. No credit is allowed if any part of the home is owned by someone who is not a low-income person.
- Continuing when you do not qualify. Complete Part II only if you meet the Part I income guidelines. Stop at line 8 if line 3 is not greater than line 7.
Questions people ask
What is the maximum credit?
The maximum refundable credit is $1,000. Your credit is the difference between lines 3 and 7, capped at $1,000, if you qualify.
Can I claim this if I do not have to file a federal return?
Part I includes an income test for people who are not required to file a federal return. Use income less Social Security benefits for that test. You must still meet the schedule’s other eligibility requirements.
How does the Senior Citizen Tax Credit affect this credit?
If eligible, enter the allowable Senior Citizen Tax Credit from Form SCTC-A, line 2, on HEPTC-1, line 2. Subtract it from the property taxes on line 1 before calculating this credit.
Are Social Security benefits included in the credit calculation?
Part II, line 4d, asks for Social Security benefits, including SSI and SSDI, that are not included in your federal adjusted gross income. These amounts are added when calculating total gross income on line 6.