BEDFORD – Indiana provides a valuable property tax deduction for disabled veterans, offering financial relief to those who served in the Armed Forces. Veterans who meet specific criteria can deduct up to $38,960 from the assessed value of their primary residence. This benefit is available to qualifying veterans and surviving spouses, making it a significant opportunity for many in the Hoosier state.
“Veterans who have not filed need to do so before the end of the year,” said Lawrence County Veterans Affairs Officer Brad Bough. “Widows of veterans must also come in and renew the property tax in their names. Our staff is available to help. Please call the office and make an appointment before December 30.”
What is the Benefit?
Under Indiana Code 6-1.1-12-13 and 6-1.1-12-14, eligible disabled veterans can receive two distinct property tax deductions, depending on their service and disability status.
- $24,960 Deduction: Veterans who served during wartime and have a service-connected disability rating of 10% or more can deduct up to $24,960 from the assessed value of their primary residence.
- $14,000 Deduction: Veterans who served for at least 90 days and have a total disability rating or are over 62 with a 10% VA disability rating can receive a $14,000 deduction.
Veterans may qualify for a combination of both deductions, depending on their specific circumstances, and surviving spouses of eligible veterans are also entitled to these benefits.
Who is Eligible?
Eligibility is determined based on service dates, discharge status, and disability rating, with the following requirements:
- Wartime Service: Veterans who served during one of the following periods:
- Korea: June 27, 1950 – January 31, 1955
- WWII: December 7, 1941 – December 31, 1946
- Gulf War: August 2, 1990 – Present
- Vietnam: August 5, 1964 – May 7, 1975
- Honorable Discharge: Veterans must have received an honorable discharge.
- Disability Rating: A service-connected disability rating of 10% or more, as determined by the U.S. Department of Veterans Affairs (VA).
- Surviving Spouses: Surviving spouses of eligible veterans or those killed in action may also qualify.
For veterans over 62 years old or those with a permanent and total service-connected disability rating, the $38,960 deduction may apply if the home’s assessed value is below $240,000.
How to Apply
Veterans must apply at the county auditor’s office where the property is located. Lawrence County Veterans Affairs Officer Brad Bough and his staff can assist with the application process.
Documents Needed
- State Form 12662: Application for Tax Deduction for Disabled Veterans and Surviving Spouses of Certain Veterans.
- VA Summary or Tax Abatement Letter: This document must show the veteran’s service dates, combined disability rating, and wartime service dates.
- State Form 51186: This form should be completed by the Indiana Department of Veterans Affairs (IDVA) or County Veteran Service Officer after verifying the veteran’s service dates, discharge type, and disability rating.
Veterans can visit Indiana DVA Property Tax Deductions for further eligibility details and guidance.
This initiative honors the service of Indiana’s veterans by offering financial relief while recognizing their sacrifice for the nation.
