SRS: You may be able to postpone your property taxes
In early October you will receive your property tax bill for December 10 and April 10. The State Property Tax Postponement (PTP) Program allows eligible homeowners to postpone payment of property taxes on their primary residence.
To be eligible for PTP, you must:
• Be at least 62.
• Own and occupy the home as your primary residence.
• Have a total household income, including Social Security, of $53,574 or less.
• Not have a reserve mortgage on your residence.
• Have at least 40 percent equity in your property.
Applications for the PTP Program will be accepted beginning October 1, 2024. Funding for the program is limited, and applications will be processed on a first-come, first-served basis. You will receive confirmation that your application was received, in addition to an approval or denial, via U.S. mail. Only current-year property taxes 2024-2025 are eligible for postponement.
Repayment under the PTP Program becomes due when the homeowner:
• Moves from the property.
• Sells to someone or transfers title in a gift.
• Dies and does not have a spouse or registered domestic partner continue to reside in the property.
• Defaults on a senior lien (i.e., mortgage).
• Refinances a mortgage or obtains a reverse mortgage.
This program is intended for those individuals who have difficulty paying their property tax when due. However, remember this is a loan which will have to be paid eventually by you or your estate with interest of 5 percent.
The application and instructions are a total of 18 pages. Also, there are many items you must include with the application.
What type of things will you need to copy and include?
• Proof of age (unless submitted in a prior year & application approved)
• Deed (unless submitted in a prior year & application approved)
• Recent mortgage statement
• 2023 income tax return or 2023 tax documents (form 1099, etc.)
• Trust agreement if personal residence is owned by a Living Trust or other trust (unless submitted in a prior year & application approved)
• 2024/2025 property tax bill
You may print an application from the State Controller’s Office website. Go to www.sco.ca.gov; under “Public Services” click on “Property Tax Postponement” and then on “Applications”. Alternatively, you may visit the SRS office and a volunteer will print one for you.
The 2024/2025 property tax bills have not yet been mailed by Santa Clara County. It is expected the bills will be mailed and will be available online by October 1. Go to payments.sccgov.org/propertytax
Remember, the funding for the Postponement Program is limited and is on a first-come first-serve basis. We recommend that you complete the application and copy all the other required items before October 1. Then you can copy or print your tax bill on October 1 and mail your application.
SRS Reminder: Estimated tax due September 16
If you file quarterly 1040-ES forms, the third payment of estimated tax is due Monday, September 16.
You can mail your 1040-ES form with a check to the IRS in Cincinnati, Ohio. The check should be payable to the United States Treasury.
Rather than a check, you can use the online Direct Pay Service. Go to www.irs.gov and click on the box labeled “Make a Payment” and then “Pay now with Direct Pay or “Pay by Card or Digital Wallet. ”There is no fee to use the online Direct Pay service giving your checking account number. There is a fee if you use a credit or debit card.
If you normally file a 540ES form, you do not have a September 16 payment. California wants its money sooner rather than later. Rather than paying 25 percent each quarter as you do to the IRS, California requires a payment of 30 percent on the first estimate in April, 40 percent on the second estimate in June, zero on the third estimate in September and the final 30 percent for the last payment in January.
Note: The Senior Resource Services (SRS) office hours for drop-in assistance are Monday, Wednesday, and Friday from 10 a.m. to noon. The SRS office is in the Cribari Center across from the Post Office. You may also leave a message at 408-239-5253 or e-mail SRS at villagessrs@sbcglobal.net. The web site is www.thevillagesgcc.com/srs. The purpose of SRS is to provide education and general business and financial information. All assistance is free and confidential. You should ask your professional advisor about your individual situation.