In continuation of the tax deduction series, Marshall County Auditor Angie Birchmeier would like to remind taxpayers of the requirements for the Over 65 and Over 65 Circuit Breaker deductions.  

Indiana Code 6-1.12-9, 10.1 states the requirements for the Over 65 Deduction which are as follows.  The applicant must own or be buying under recorded contract the real property or mobile or manufactured home and be at least 65 on or before December 31 of the year preceding the year in which the deduction is claimed.  The applicant must also occupy the real property, mobile or manufactured home.

The Adjusted Gross Income cannot exceed $30,000 for an individual who files a single tax return or $40,000 for joint filers, which will need to be verified by bringing in IRS Form 1040.  This would include the income of anyone that shares ownership of the property as joint tenants or tenants in common.  In addition, the Assessed Value of the property cannot exceed $240,00.

Any surviving, unmarried spouse, who is at least 60 on or before December 31st of the year prior to receiving the deduction, qualifies if their deceased spouse was 65 at the time of death may also qualify.

The deduction cannot be denied due to an individual being absent from the property due to being hospitalized or in a nursing home.

The Over 65 Deduction will be the lesser of one-half of the assessed value of the property or $14,000.  If a property is already receiving Homestead Deduction, the Over 65 may not reflect if the total deductions are at least one-half of the assessed value.  

The Over 65 Circuit Breaker Credit has similar qualifications, although the Assessed value of the property cannot exceed $200,000.00.  This deduction does not qualify for surviving, unmarried spouses of a deceased individual who was 65 at the time of their passing.  

The Over 65 Circuit Breaker prevents property tax liability on qualified homestead property from increasing by more than 2% over the previous year’s tax liability.

If claiming this deduction, you may not claim any other deduction apart from the Homestead and Fertilizer Storage deductions.

In Indiana, all counties take a snapshot of the county as of January 1 of each year for the following year’s tax cycle.  Due to billing a year in arrears, if the property transfers to another party, the deductions may still be applicable until the next assessment takes place.

The application for the Over 65 and Over 65 Circuit Breaker must be completed by December 31st before the year the taxpayer wishes to claim the deduction.  The deduction paperwork must be filed with the Auditor’s office.   

The Marshall County Building is open to the public from 8:00 am to 4:00 pm Monday through Friday. 

Residents are welcome to call us at 574-935-8555 with any questions or concerns.