Circuit Breaker Property Tax Reduction

The Property Tax Reduction (Circuit Breaker) program reduces property taxes for qualified applicants. The amount of reduction is based on income for the previous calendar year.

If you qualify, the property taxes on your home and up to one acre of land may be reduced by as much as $1,320.

Solid waste, irrigation or other fees cannot be reduced by Property Tax Reduction benefits.

Who Qualifies?

You may qualify for property tax reduction if you meet the following requirements:

1. You owned and lived in a house or mobile home in Idaho that was your primary residence. (You may qualify if you lived in a care facility or nursing home.)

2. Your NET household income for 2016 was $29,640 or less after deducting:

  • Medical and dental related expenses not reimbursed by Medicare or other insurance.
  • Premiums paid for supplemental medical insurance*.
  • Payment or pre-payment of funeral expenses
  • Business and farm losses
  • Early withdrawal penalties 
  • Alimony payments

*Qualified medical expenses are defined in section 213(d) of the Internal Revenue Code.

 3. You were in one or more of the following categories as of January 1:

  • Age 65 or older
  • Widow(er) of any age
  • Blind
  • Fatherless or motherless child under 18 years of age
  • Former prisoner of war/hostage
  • Veteran with at least 10% service-connected disability, or receiving VA pension for a nonservice-connected disability*
  • Disabled as recognized by the Social Security Administration, Railroad Retirement Board or Federal Civil Service*

    *You may qualify if your disability application is being processed or appealed.

How to Apply

Apply at the Power County Assessor’s Office.

You can apply for your property tax reduction between January 1 and April 15. To receive this benefit, you must apply and qualify each year. It is not renewed automatically.

You will be required to show proof of your income, medical expenses and any disability when you file your application.

If you are missing some of this information bring as much of the information as possible by the April 15 deadline. You will be allowed a reasonable amount of time to complete the form after the filing deadline.

If you are application is approved, your property tax reduction will appear on the tax notice sent to you in November.

All recipients of the property tax reduction benefit automatically receive the Homeowner’s Exemption, which reduces the taxable value of a home (an 1 acre of land) by 50% or $89,580, whichever is less.

Documentation

You must provide the Assessor’s office with the following documents to show your income and expenses. (Bring original documents or copies).

If you file a tax return provide:

• Federal income tax return and documents showing income not reported on you tax return including:nontaxable income.

• Proof of medical expenses:

   1. Provide a copy of federal Schedule A, if you file it with you tax return.

   2. If you do not file federal Schedule A, provide the following:

      a) Prescription drug records from your pharmacy;

      b) Receipts for other medical expenses you paid that were not reimbursed by Medicare or other insurance.

• Social Security/Railroad Retirement 1099 forms

• Any other documents showing income not reported on your tax return.

If you do not file a tax return, provide:

• All of the above that apply to you;

• All 1099 forms you received;

• Proof of expenses to be deducted from business or rental property income;

In any case:

• If disabled, provide certification of disability from VA, Social Security, Railroad or Federal Civil Service (or show proof that your claim is being processed or appealed);

• If blind, provide certification from doctor.

Income Guidelines

When you complete your application, you must report all income received by:

  • Yourself and your spouse

You must include:

  • Wages
  • Interest (including bank, escrow, inheritance, etc., even if nontaxable)
  • Capital gains 
  • Business, farm and rental profits
  • Social Security/SSI (Supplemental Security Income)
  • Railroad Retirement
  • Unemployment/workers compensation
  • Pensions and annuities (except qualified rollovers)
  • Military retirement benefits
  • Department of Health and Welfare payments (Aid for Dependent Children and housing assistance)
  • Child support/alimony
  • “Loss of earnings” insurance payments
  • Disability income from any source
  • Gambling winnings

Do not report the following income received:

  • Inheritance (Except interest on the inheritance)
  • Gifts from friends and family
  • Grocery Credit Refund (Form 24)
  • Capital gains
  • Medicare taken out of Social Security
  • One-time lump sum insurance benefits (life, etc.)
  • Food stamps
  • Fuel/energy assistance
  • Principal portion of any payment received from the sale of property
  • VA pensions and compensation if you have a 40% to 100% service-connected disability

For more information, contact:

Mary Annen
Power County Assessor
543 Bannock Ave.
American Falls, ID 8321

Phone: 208-226-7616
Fax: 208-226-7612

Email: mannen@co.power.id.us This e-mail address is being protected from spambots. You need JavaScript enabled to view it

9:00 a.m. – 5:00 p.m. Monday – Friday

 

Idaho State Tax Commission 208-334-7736, 1-800-334-7756 ext. 2 toll free.

Hearing impaired: TDD 1-800-377-3529