Maximize Your Savings: Tax Relief Options for Seniors, Disabled Homeowners, and Veterans in Tennessee
Estate planning in Tennessee goes beyond managing assets and distributing wealth. It also involves ensuring that you or your loved ones are taking full advantage of the tax relief programs available, especially for seniors, disabled homeowners, and veterans. At Vermillion Law, we want to help you understand how these programs work and how you can benefit from them. Below, we break down three key tax relief options available in Tennessee.
1. Tax Freeze for Seniors
If you’re a Tennessee homeowner aged 65 or older by December 31, 2024, you may be eligible for a Tax Freeze that locks in the amount of property tax you owe at its current rate. This program is particularly helpful in shielding seniors from future property tax increases. However, to qualify, your combined household income for 2023 must not exceed $60,000. One important point to note is that all property taxes must be paid in full before the county can begin the paperwork process for approval. Some restrictions may apply, so it’s essential to consult with an estate planning attorney or county tax office to ensure you meet all the eligibility criteria.
2. Tax Relief for Seniors & Disabled Homeowners
Tennessee also offers a Tax Relief program for seniors and disabled homeowners, which can provide an $89 tax credit. To qualify, you must meet one of the following criteria by December 31, 2024:
- Be 65 years or older, or
- Have been rated as totally and permanently disabled by the Social Security Administration or another qualified agency.
Additionally, the combined income for your household in 2023 must not exceed $36,370. This combined income includes the earnings of both the homeowner and their spouse, even if the spouse is not disabled or on the deed. Please note: this includes all other owners of the property. If you meet these criteria, you can receive significant assistance in reducing your property tax burden, making it easier to manage on a fixed income.
3. Tax Relief for Disabled Veterans and Their Widow(er)
For honorably discharged veterans who are totally and permanently disabled due to a combat or service-related injury, or their widow(er), Tennessee offers Tax Relief worth $487. This program can provide significant financial relief, helping disabled veterans or their surviving spouses manage their property taxes more effectively. To qualify, the veteran must have been rated as permanently disabled by the Veterans Administration due to their service. Additionally, surviving spouses must provide proof that their spouse was eligible for the benefit at the time of death.
Why Estate Planning is Crucial for Maximizing Benefits
Taking advantage of these tax programs is just one part of a comprehensive estate plan. At Vermillion Law, we believe in helping you protect your assets while ensuring you are aware of every financial advantage available to you. By incorporating these tax relief programs into your estate plan, you can better manage your financial future while preserving more of your estate for your heirs. If you or a loved one may qualify for any of these tax relief programs, it’s important to begin the process early and ensure all necessary paperwork is in order. Contact Vermillion Law today to schedule a consultation and learn more about how we can assist you in navigating these tax benefits and planning for your future.
*Both Tax Freeze for Seniors and Tax Relief for Disabled Veterans and Their Widow(er) programs require that you own and use the property on which you apply as your primary residence. Proof of eligibility will be required. Other restrictions may still apply.