The State Tax Relief Program has helped thousands of veterans and their families adjust to the challenging times following a service or deployment. There are many veterans who find that they must adjust to the new way of life after being injured or disabled. These qualified individuals may qualify for the Hardship Tax Credit, a refund reduction of income tax and/or a break in the principal amount of the tax-paid compensation received. But, if you’re a veteran or member of the Selected Reserve, you will not be eligible for this particular federal tax relief program. If your tax problems are the result of a recent decline in your financial situation or inability to pay your taxes, you may be able to receive an IRS Offer In Compromise (OIC). You may also qualify for a state tax relief program known as the “hardship tax relief.” For a homeowner, this is generally a good option because most homeowners find that their homes are not their primary source of income. A homeowner may use the hardship tax relief to mitigate the loss of home equity due to foreclosure or a short sale. Unfortunately, some homeowners find that there is no other choice but to wait out the consequences of their financial hardships.

State Tax Relief Hardship Program eligibility 

If you and/or your spouse are eligible for the OIC, a qualifying event can be used to prove the need for this federal tax relief program. Your qualifying event may occur due to a recent decrease in your monthly income, financial complications, increased expenses or similar reasons. Some homeowners may qualify for the hardship relief based on a number of factors, such as the total amount of debt and/or other financial hardships; the length of time that they have been paying their mortgages; and/or their retirement plans. To be eligible for the federal OIC, you will have to complete an application with the IRS. If you meet the above mentioned requirements and/or the requirements of your local state tax breaks, you may qualify for a tax relief. In order to receive a state tax break in your state, you must be a resident of that state. In order to be eligible for the local tax breaks in your state, you must have lived in that state for at least one year. The state tax relief will vary from state to state, so it is important to review your state tax brackets and/or other qualifications closely. In general, a resident of the state will be granted a tax break if he or she submits the proper paperwork and/or certifications.

Another option to help a homeowner save money on property taxes is the veteran tax relief program. The VA, which is a government agency that provides assistance to veterans, has a program that allows a veteran to apply for tax breaks depending on the severity of their physical or mental condition. If you are a veteran, you may qualify for these tax breaks. For a list of eligible veterans, visit the website Veterans Administration. To be more specific, you must apply for and receive a VA home loan if your home qualifies for the VA home loan program; you must also meet other criteria such as owning or renting not more than three units. You may also qualify for a federal Home Affordable Modification Program (HAMP) based on your financial circumstances. To be eligible, you must have suffered an income loss that results in a drastic decrease in your current housing cost; you must also qualify for unemployment; or you must meet the other requirements of HAMP. To find out if you do qualify, contact either your local HUD office or the U.S. Department of Housing and Urban Development (HUD). Once you qualify for one of these programs, you may qualify for the other if you qualify for a federal HAMP loan. Contact us to learn about the relief programs we have to offer.