Under the Homestead Benefit Program, homeowners who meet the income requirements and have paid their taxes receive what on their tax bill?

• A. Property Exemption
• B. Tax Credit
• C. Tax Refund
• D. Tax Deduction

Answer: (B)

A tax credit directly reduces the amount of tax you owe on your bill. Under the Homestead Benefit Program, eligible homeowners who meet the income requirements and have paid their taxes receive a credit that lowers their property tax bill by a set amount, applied directly to the tax due. This is different from a deduction or exemption, which lower the amount of income or the property value used to calculate the tax, and from a refund, which is money returned after filing if you’ve overpaid. For example, if your tax bill is $2,000 and you have a $500 credit, you would owe $1,500.