The Disabled Veterans School Tax Credit is open for applications until April 30, 2022. Learn more and apply. More Info

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Disabled Veterans School Tax Credit FAQ


How the Program Works:

Veterans with 100% disability compensation due to service-connected, permanent and total disability based on individual unemployability or 100% disability rating from the U.S. Department of Veterans Affairs.

And

Have held legal domicile in Delaware for the last 3 years.

Note: Taxpayers must satisfy all prior property tax liabilities in full by the end of preceding tax year in order to qualify for this credit in subsequent property tax years

Qualifying veterans must complete an application for the credit and submit it to the county in which you reside. You can access a copy of the Disabled Veterans School Tax Credit application here. (PDF format — 12KB)

The amount of the credit will be deducted from your property tax bill before it is mailed to you by the County.

No. Once you qualify for the program, you do not need to re-apply each year. The Disabled Veterans School Property Tax Credit is not transferable from property to property. If you purchase a new principal residence or otherwise change your principal residence to another home that you own, a new application must be completed and filed. Applications may be filed in advance of relocation.

Note: The application requires taxpayers to notify the county of any change in disability rating within 60 days of such change.

Married Taxpayers:

If you and your spouse own the property as tenants by the entirety, the property is treated as if wholly owned by each spouse for the purposes of this credit. Therefore, you and your spouse are entitled to 100% of the disabled veteran school property tax credit. However, no more than one credit per property may be granted in any one year.

EXAMPLE 1: Mike and Jen Doe are married and own their home as tenants by the entirety. Mike is a qualified disabled veteran and Jen is not.  Mike may apply for 100% of the Disabled Veteran School Property Tax Credit even though Jen does not qualify.

EXAMPLE 2: Jack and Jane Jones are married, and own their home as tenants by the entirety. Jack and Jane are each qualified disabled veterans. They are joint owners of their home. Jack and Jane may apply for the credit, but only one Credit may be awarded for their home in any one year.

If box 3(c) of the application indicates a married couple, or civil union partners and all other requirements for the credit have been met, the property is eligible 100% of the credit.

If you and your spouse own the property as tenants by the entirety, the property is treated as if wholly owned by each spouse for the purposes of this credit. Therefore, you and your spouse are entitled to 100% of the disabled veteran school property tax credit and, because the law only allows for only one school property tax credit in any year, neither you nor your spouse are entitled to the senior school property tax credit.

EXAMPLE: David and Linda Smith are married and jointly own their home. David is a qualified disabled veteran and Linda is 70. David qualifies for the Disabled Veterans 100% School Tax Credit . Because David is qualified, school property taxes are reduced to zero and no additional credits may be claimed.

No. If only one spouse is a qualified disabled veteran, this spouse should complete the owner section. (ADD HYPERLINK TO APPLICATION) Personal information for the spouse who is not a qualified disabled veteran should be recorded in the “co-owner” portion. If both spouses are each a qualified disabled veteran, only one application should be completed for both spouses. Personal information for the spouse who is also a qualified disabled veteran should be recorded in the “co-owner” portion of the application

application.(PDF)

Unmarried Taxpayers:

The law does not prevent more than one person from claiming a credit for the same property (provided they meet all established qualification criteria). However, no more than one full credit may be taken per property. Your share of the credit is determined by your ownership interest in the property.

EXAMPLE: Jessica Brown and Jason Johnson are co-owners of a home that they both occupy. Jessica and Jason are both qualified disabled veterans. Jessica qualifies and may apply for the credit. However, the value of the credit for each person is pro-rated to reflect each person’s ownership interest. No more than a 100% credit may be taken per property.

For the purposes of this credit, the ownership shares of each of the owners of the property are assumed to be equal, unless it is demonstrated that the ownership shares are not equal.

 

Yes. Each co-owner should submit an application that contains their personal information in the primary section of the application and their co-owner(s) personal information in the co-owner section of the application.

 


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