If you are looking for a way to put a little extra money back in your pocket, it is important to be aware of all of the tax breaks and government-issued financial breaks you are entitled to receive. One break that many Texas residents are still unaware of is the homestead exemption, which can lower your annual bills to taxing entities.
As a resident of Texas, you are automatically entitled to receive a homestead exemption on your principal residents. By taking advantage of this exemption, you can lower the taxable value of your home. In turn, this will lower your tax bills and could potentially save you hundreds of dollars each year.
Although you must apply for the homestead exemption in order to enjoy the benefits it provides, it is important to note that there are no fees associated with taking the exemption. Unfortunately, there are many scammers out there who will try to take advantage of unsuspecting homeowners and will try to get you to pay a fee in order to obtain the exemption you are entitled to.
While scammers come in all shapes and sizes, one of the most common scams is to send a letter to a homeowner on official-looking stationary requesting a few be paid in order to the exemption. In many cases, the fee is $50 or more, but unsuspecting homeowners are willing to pay the fee in order to enjoy an even greater savings in the long run. Not only is it not necessary to pay a fee in order to take advantage of this exemption, but you do not need to work with a “tax processing center” or other organization claiming to represent a tacking authority. Rather, you can easily apply for the homestead exemption by downloading an application from the state comptroller’s Web site and then sending the form in to your appraisal district.
Under Texas state law, companies are required to make it clear that they are not a government agency when they contact homeowners about issues such as filing for a homestead exemption. Unfortunately, many people are still confused by these mailings and send in the fees when it is not necessary. If you receive one of these letters, simply disregard it and keep your hard-earned money to yourself. Then, check to make certain you have filed for your homestead exemption so you can start saving money on your taxes.
Ryan Lynch runs the marketing department for Cantera Real Estate located in Austin, Texas. Visit http://www.jimolenbush.com
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