District of Columbia Schedule H: Individual Income Tax Credit for Homeowners and Renters

Quick Facts

What it does: Schedule H provides a refundable credit through the DC individual income tax return (Form D-40) to offset property taxes paid directly by homeowners or indirectly through rent. Even if you owe no income tax, the credit can generate a refund check.
Why it matters: DC rents and property taxes have risen rapidly while incomes for retirees, service workers, and people with disabilities lag behind. Schedule H converts part of those housing costs into a cash refund, making it one of the most accessible affordability tools for District residents.
Maximum benefit: For tax year 2024, homeowners may receive up to $1,250 and renters up to $1,000. The credit phases out as income exceeds $58,000 and is unavailable once household income surpasses $69,000. Seniors over 70 receive a modest bonus amount.
Coordination with other relief: Homeowners can claim Schedule H in addition to the homestead deduction, senior citizen tax relief, and the circuit breaker for property taxes. Renters can use Schedule H alongside federal housing vouchers or local rental assistance, provided they paid qualifying rent out of pocket.

Program Overview

Schedule H operates like a property tax circuit breaker embedded in the income tax system. Instead of applying through the Office of Tax and Revenue (OTR) property division, you claim the credit when filing your annual D-40 return. The formula compares your total property tax (or a rent equivalent) to a percentage of your income, refunding amounts above that threshold. Because it’s refundable, you receive the credit even if you have no DC income tax liability.

Homeowners use the actual property tax paid on their primary residence (up to $3,500) as the basis for the calculation. Renters multiply annual rent by 20% to approximate the portion that covers the landlord’s property tax. For subsidized renters in programs like Section 8, only the portion of rent you actually paid counts.

The credit is especially valuable for seniors and residents with disabilities. Those age 70 or older can add a $500 senior supplement if their income is below $75,000. The supplement helps offset rising condo fees and co-op assessments not directly covered by property tax relief.

Eligibility Requirements

Residency: You must have been domiciled in the District for the entire tax year. Temporary absences for school or medical care are allowed if DC remained your permanent home. Provide proof like a DC driver license, voter registration, or lease if OTR requests verification.
Income limits: Your federal adjusted gross income (FAGI) plus certain nontaxable income must be below $69,000. Include Social Security, pensions, workers’ compensation, unemployment, and nontaxable interest. Exclude Supplemental Security Income (SSI) and public assistance.
Housing status: Homeowners must have paid property tax on a home they owned and occupied as their principal residence for at least six months of the year. Renters must have paid rent on a DC property subject to real property tax. If your landlord is exempt (such as a government agency), you cannot claim the credit.
No dependent status: You cannot be claimed as a dependent on someone else’s federal tax return. College students claimed by parents are ineligible even if they pay rent in DC.
Age bonus: Applicants age 70 or older can claim an additional $500 supplement if they meet income limits and are not claimed as a dependent.
Shared households: If multiple unrelated adults share an apartment, each can claim a portion of rent paid so long as total rent claimed does not exceed the amount actually paid.

Benefit Calculation

Homeowners: Enter total property tax paid on Line 1 of Schedule H (maximum $3,500). Subtract any senior citizen or disabled property tax relief to avoid double counting. The credit equals the tax paid minus 3.5% of income for households under $25,000, with different percentage thresholds as income increases.
Renters: Multiply annual rent by 20% to approximate the property tax component. If you received utility subsidies, deduct them from rent before calculating. Enter the result on Line 2.
Credit amount: Use the Schedule H worksheet to determine the percentage of income you are expected to pay. The credit is the difference between your property tax equivalent and that expected contribution, capped at $1,000 for renters and $1,250 for homeowners. Seniors age 70+ add $500.
Refundability: Any remaining credit after offsetting DC income tax liability is refunded via direct deposit or check. You can also apply the credit to next year’s tax if you choose.

Application Process

Collect documentation. Homeowners need property tax bills or mortgage statements showing taxes paid for the year. Renters should gather leases, rent receipts, or landlord statements verifying total rent and that the property is subject to DC property tax.
Complete Form D-40. Schedule H is attached to the DC individual income tax return. Even if you have no income, file a “zero income” return to claim the credit. Online filing through MyTax.DC.gov guides you through Schedule H questions.
Fill out Schedule H. Enter your name, address, Social Security number, filing status, and residency confirmation. Calculate total property tax or rent equivalent, list all household members and their income, and compute total household resources.
Answer disqualification questions. The form asks whether you were incarcerated, lived in tax-exempt housing, or received other property tax credits. Answer honestly; OTR cross-checks data.
Submit by April 15. File electronically for faster processing. If you need more time, submit Form FR-127 to receive an automatic six-month extension, but pay any expected tax due to avoid penalties. Extensions delay but do not remove the requirement to file.
Track your refund. Use MyTax.DC.gov to monitor status. Refunds typically issue within six weeks for e-filed returns. If OTR needs more information, respond promptly to avoid delays.

Documentation Checklist

Copy of your Form D-40 and Schedule H.
Property tax bills or mortgage escrow statements (homeowners).
Lease agreements, rent receipts, or landlord certification (renters).
Proof of DC residency: driver license, utility bills, voter registration card.
Social Security 1099, pension statements, W-2s, and other income records for all household members.
Documentation of nontaxable income such as workers’ compensation or unemployment benefits.
For seniors claiming the supplement: proof of age such as birth certificate or passport.

Strategies to Maximize the Credit

File even if you have no income tax obligation

Many seniors assume they cannot file because they owe no income tax. Filing a D-40 solely for Schedule H is allowed and encouraged. Volunteer Income Tax Assistance (VITA) sites across DC can file returns free of charge and ensure you receive the full credit.

Coordinate with rent control documentation

Schedule H requires proof that your building is subject to property tax. If your landlord receives a tax exemption, ask them for a statement showing the property’s real property tax identification number and tax payments. This documentation also helps if you pursue rent control petitions or other tenant protections.

Track rent payments carefully

Use a ledger or app to record monthly rent payments, including date, amount, and payment method. Retain canceled checks or bank statements. OTR occasionally audits renter claims and may request copies. Detailed records expedite verification.

Review income inclusion rules

Household income includes contributions from roommates if they are part of your economic unit. If you share expenses but maintain separate finances, consider formalizing a roommate agreement stating that each person pays their own share. This can help clarify income allocations during audits.

Pair with local assistance programs

Schedule H refunds can be timed to support other expenses. Many households schedule medical procedures or school purchases after receiving the credit. Combine it with the Emergency Rental Assistance Program (ERAP) or Strong Families Strong Futures DC tax credit to stabilize your budget throughout the year.

Troubleshooting Common Issues

Claim rejected due to landlord exemption: If OTR denies your renter claim because the building is tax-exempt, request documentation from the landlord proving tax status. If the landlord pays a payment in lieu of taxes (PILOT), you may still qualify; appeal with supporting evidence.
Mismatch in residency records: If you moved during the year, provide a detailed timeline and documents for both addresses. Only months you lived in DC count.
Income miscalculation: Double-check that you included Social Security and pension income even if untaxed federally. OTR frequently adjusts claims when household income is understated. Provide SSA-1099s and pension forms to verify amounts.
Delayed refund: Use the “Where’s My Refund?” tool on MyTax.DC.gov. If status shows “Pending Review” for more than eight weeks, call OTR at 202-727-4TAX. Be prepared to fax or upload requested documents within five business days.
Paper filing errors: Handwritten forms often trigger processing delays. Whenever possible, e-file using certified software or VITA assistance. If you must mail, use certified mail and keep copies of everything.

Example Scenarios

Senior homeowner in Ward 5: Gloria, age 74, owns a rowhouse with $3,200 in annual property tax after the senior citizen deduction. Her income is $38,000. She enters $3,200 on Schedule H, subtracts the expected contribution, and receives the $1,250 maximum plus the $500 senior supplement for a $1,750 refund.
Renters sharing an apartment: Two roommates share a $2,400 monthly rent in Columbia Heights. Each pays $1,200 directly to the landlord. They file separate Schedule H forms, each claiming $1,200 × 12 × 20% = $2,880 as their property tax equivalent. Because their incomes are $32,000 and $40,000 respectively, both receive partial credits around $500.
Resident with Section 8 voucher: Malik pays $300 monthly as his portion of rent, while the voucher covers the remainder. He multiplies $300 × 12 × 20% = $720 and compares it to his expected contribution. Despite the smaller base, he still receives a $300 refund, which he uses for prescription costs.

Resources and Support

MyTax.DC.gov: File returns, upload documentation, and track refunds.
OTR Customer Service Center: Call 202-727-4TAX or visit 1101 4th Street SW for in-person assistance.
AARP Foundation Tax-Aide & VITA sites: Offer free tax preparation with Schedule H expertise. Locations are listed at aarp.org/taxaide and irs.gov/vita.
Office of the Tenant Advocate: Provides guidance on renter rights and can help gather landlord compliance documents.
Legal Aid Society of the District of Columbia: Assists low-income residents with Schedule H appeals and tax controversies.

Frequently Asked Questions

Can I claim Schedule H if I moved midyear? Yes, if you lived in DC at least six months and paid rent or property tax during that time. Prorate the amount and provide documentation for the months you resided elsewhere.

Does the credit count as income for SNAP or Medicaid? No. Schedule H refunds are treated as tax refunds, which are excluded from income calculations for federal means-tested programs for 12 months.

What if I file jointly with my spouse but only one of us is over 70? You may still claim the $500 senior supplement if at least one filer is 70 or older, meets income limits, and is not claimed as a dependent.

Can I receive Schedule H retroactively? DC allows amended returns within three years of the original due date. If you missed the credit in prior years, file an amended D-40 with Schedule H for each year.

Are condominium fees eligible? Fees themselves are not property taxes, but if your association levies a special assessment to pay property tax, that portion may be included. Request documentation from the condo board showing the tax amount included in fees.

By organizing documentation early, filing electronically, and responding promptly to OTR requests, you can secure the full value of Schedule H and turn high DC housing costs into a meaningful cash refund each spring.