By Paul Drewes
HONOLULU (KHNL) - Even though we are not even close to the month of April, there is an approaching tax deadline. And if you miss it, it could cost Honolulu homeowners hundreds, even thousands of dollars.
The cost of owning a home in Hawaii is high. But if you make monday's deadline, some homeowners could save a bundle. "For me, it's a substantial amount, over 3000 dollars in savings." says David Moody of Kailua.
October first is the deadline to file for home owner's tax credits and home exemptions.
But some are having trouble getting the percentages and numbers to add up.
"I thought I had to be 75 but you don't." says Moody.
"It might be confusing that you need to be in an age bracket but for the tax credit there is no age limit." says Stephanie Hokushin, with the Department of Budget and Fiscal Services for Honolulu.
This credit puts a cap on how much homeowners will be taxed. Four percent of a person's income for those under 75 and three percent for those 75 and older.
For example, if the 60 year old titleholder to a home has a $50,000 income, he would only have to pay up to 2000 in taxes. Any additional taxes he would be given credited for.
"Property taxes have increased and we find that people on limited income are having a hard time making their payment, so this is like tax relief for them ." says Hokushin.
The home exemption application is not causing as much confusion, but also has a Monday filing deadline.
Homeowners under 65 get 80,000 dollars taken off the property value, which lowers property taxes. But if you've bought a home this year, you have to file for this exemption or you miss the savings.
Meanwhile the tax credit has to be applied for each and every year.
There are also other ways some homeowners can reduce their taxes.