Taxing units usually mail their tax bills in October and October is when the government issues the form for payment. It can take up to two weeks for the government to get back to you.

It’s important to pay in full, because you may not qualify for any government refund if you overpay. In the last few years, the IRS has been warning of an upcoming crackdown on tax evasion. If you don’t pay your property taxes on time, you may face penalties, as well as a loss of your mortgage.

If you think you owe taxes, you can get a full refund from the IRS by filing Form 8886, Claim for Refund. Be sure to keep a copy of your Form 8886, and remember to include it in any follow-up letters you send to your local taxing office. If you need professional help, we suggest to look online. There are great companies that even offer great discounts (you can look here).

Filing your property taxes in a timely manner may help you avoid a late fee, which can be as high as $400. If you’re looking for a property tax refund, you’re certainly not alone. The IRS estimates more than 30 million individuals filed for a property tax refund in fiscal year 2012. In addition to helping you with your taxes, a property tax refund will save you time, money, and energy.

More Money for You and the Environment

Property taxes are generally a small percentage of overall property taxes. Property taxes represent about 1.5 percent of the assessed value of all homes and about 6.5 percent of the total value of all residential properties in the U.S. However, the average homeowner who receives a property tax refund spends less than half as much on property taxes as he or she spends on utilities. The Internal Revenue Service has estimated the annual cost of property taxes to be $17.9 billion. A household with a median income that makes $40,000 to $60,000 pays $3,300 in property taxes annually. However, it costs about $2,500 to send the average homeowner to the grocery store. For each dollar that is paid to property taxes, approximately $1.10 is spent on utilities, about $1.25 on health care and services, and about $0.75 on education. According to data from the U.S. Census Bureau, as of 2009 about 80 percent of all homeowners live in rental properties, while about 25 percent live in owner-occupied residences.

For further discussion, see the Federal Budget of the United States by the Congressional Budget Office, December 2011, pp. 5-6, Table A-1.

Since the federal government takes over the payment for Medicare, Medicare is more efficient than private insurance plans. This means that people who do not have the money to pay for insurance are no longer forced to pay for anything.