- You paid property tax to Lake County (Indiana) during 2014 on your residence. Your residence is your principal dwelling. You must either own or be buying the residence under contract, and must pay property tax to Lake County (Indiana) on that residence.
- Your earned income must be less than $18,600. Earned income is the combination of your (and your spouse's, if filing a joint return) wages, salaries, tips, and other compensation. NOTE: Income from pensions, interest, dividends, Social Security, etc., are not classified as earned income.
Example. Dale receives $17,000 pension income, $3,000 Social Security income and $100 interest income. He meets the income eligibility requirement because his earned income is less than $18,600 (it is zero).
Note: If you take this credit you will not be able to claim the homeowner's residential property tax deduction. In most cases, the credit is going to be more beneficial than the deduction.