District Treatment of Federal Unemployment Compensation Exclusion

For federal tax purposes, if your modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan Act (P.L. 117-2) enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020, which means you do not have to pay tax on unemployment compensation up to $10,200.

If you are married, each spouse receiving unemployment compensation does not have to pay tax on unemployment compensation up to $10,200. Taxpayers filing a joint return are eligible for the exclusion only if their combined AGI is less than $150,000. Amounts over $10,200 for each individual are still taxable.

If your modified AGI is $150,000 or more, you cannot exclude any unemployment compensation from gross income. As the exclusion took effect after some qualifying taxpayers already filed their 2020 returns, the IRS has announced it will automatically adjust affected returns to account for the exclusion. The IRS has advised that there is no need for taxpayers to file an amended federal return, unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included in the return.

As the federal AGI is the starting point for calculating District tax liability, the federal exclusion for unemployment compensation paid in 2020 provided under the American Rescue Plan Act will also be reflected on District individual tax returns.

What steps do District taxpayers need to take to claim the federal unemployment compensation exclusion for District income tax purposes?

  • If you have not yet filed your District return. After filing your federal return, file your District return using the federal AGI you reported on your federal return. Any unemployment compensation exclusion that you reported on your federal return will be reflected in your federal AGI and taken into account in calculating your District income tax. The District of Columbia has extended the deadline to file and pay all income tax returns until May 17, 2021. See OTR Tax Notice 2021-02: COVID-19 Emergency Income and Franchise Tax Extension.
  • If you have filed your District return. If you have already filed your District return, please do not file an amended District return at this time. The Office of Tax and Revenue is waiting for more guidance from the IRS on how these re-calculations will be reported to taxpayers and state taxing agencies. The Office of Tax and Revenue will issue additional guidance as soon as more information becomes available.

You should consult with a tax professional or visit MyTax.DC.gov for information on available credits and if the exclusion of unemployment compensation qualifies you for any credit under District tax law. If so, please do not file an amended District return at this time. The Office of Tax and Revenue will issue additional guidance as soon as more information becomes available.

For additional information, please contact the Office of Tax and Revenue ’s Customer Service Center at 202-727-4829.

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Reminder: Small Businesses May Qualify for A Small Retailer Property Tax Relief Credit

The Office of Tax and Revenue (OTR) recognizes the many hardships that businesses are currently facing and would like to remind business owners of the tax relief programs available such as the Small Retailer Property Tax Relief Credit.

What is the Small Retailer Property Tax Credit?

The Small Retailer Property Tax Relief Credit (SR Credit) is a refundable franchise tax credit that is available to qualified businesses based on either the amount of real property taxes or a percentage of rent paid on a qualified retail location.

The amount of the SR Credit is the lesser of $5,000 or (a) the real property taxes paid by the qualified business or (b) 10% of the rent or paid by the qualified business.

Who Qualifies for a SR Credit?

A qualified business can either be a corporation or an unincorporated business. The federal gross receipts of the qualified business cannot exceed $2.5 million per year. The qualified business must be engaged in making sales at retail, must have a sales tax account with the Office of Tax and Revenue (OTR) and must file District sales tax returns reflecting its retail sales. The qualified business also must be current on all District tax filings and payments for all tax types.

How Can I Claim the SR Credit?                                                                                                                                           Your business may claim the SR Credit by completing the Small Retailer Property Tax Relief Credit (Schedule SR) and filing with either your Corporation Business Franchise Tax Return (D-20) or Unincorporated Business Franchise Tax Return (D-30).

When Can My Business Claim the SR Credit?

Businesses that are eligible for the SR Credit can claim it on either their Corporation Business Franchise Tax Return (D-20) or Unincorporated Business Franchise Tax Return (D-30).

Where Can Get More Information About the SR Credit?

Click here for more information.

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Important Real Property Tax Filing Deadline Extensions

To assist property owners impacted by the COVID-19 pandemic, the Office of Tax and Revenue (OTR) is extending the deadline for property owners who wish to appeal their TY 2022 real property tax assessment, file an Exempt Property Annual Use report, as well as file an Income & Expense (I&E) report as follows:

ProcessExtended Deadline
First Level Assessment Appeals (TY 2022)April 15, 2021
Exempt Property Annual Use ReportMay 3, 2021
Income and Expense ReportMay 17, 2021

All filers must submit their real property tax forms electronically at MyTax.DC.gov.

Please note that the real property tax payment deadline will remain March 31, 2021.

To learn more, please contact OTR’s Customer Service Center at (202) 727-4TAX (4829). For assistance with MyTax.DC.gov, please contact the e-Services Unit at (202) 759-1946, Monday through Friday, between the hours of 8:15 am to 5:30 pm, or send an email to e-services.otr@dc.gov.

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District of Columbia Individual Income and Franchise Tax Extended Until May 17, 2021

The District of Columbia has extended the deadline to file and pay all income tax returns until May 17, 2021. This extension applies to all D-20, D-30, D-40, Standalone Schedule H, D-41, D-40B, and D-65 tax filers, and includes combined return filers. This extension is automatic and does not require taxpayers to apply.

Taxpayers may continue to request an extension to file their income, partnership and franchise tax returns to October 15, 2021 or November 15, 2021 for combined return filers. All such extension requests must be made by filing the applicable extension form with OTR by May 17, 2021 and making all required payments for tax year 2020 by May 17, 2021.

The deadlines to file Forms D-20ES, D-30ES, D-40ES and D-41ES and to make estimated tax payments remains unchanged. The first quarter payments are due April 15, 2021.

For additional information, please contact OTR’s Customer Service Center (202) 727-4TAX (4829).

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DC Office of Tax and Revenue’s Guidance on Reporting Unemployment Compensation

The Office of Tax and Revenue is updating this information and will repost.

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Frequently Asked Questions: Making a Real Property Payment

The enhanced MyTax.DC.gov portal now offers more customer-friendly features and services! Taxpayers may complete multiple transactions online for real property, individual income, and business taxes.

Please reference the info-graphic below for guidance on making real property payments.

For assistance with MyTax.DC.gov or account-related questions, please contact our e-Services Unit at (202) 759-1946 or email e-services.otr@dc.gov, 8:15 a.m. to 5:30 p.m., Monday through Friday.

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MyTax.DC.gov Benefits, Resources and New Processes

Last year, the Office of Tax and Revenue (OTR) launched an enhanced MyTax.DC.gov web portal that includes real property tax functions. With new efficiencies in place, District taxpayers can access key tax information electronically.

Real Property Tax in MyTax.DC.gov

The addition of real property taxes in the MyTax.DC.gov portal means that all tax types are available in one system with more efficient and customer-friendly services. Some of the new features allow taxpayers to:

  • View detailed account information such as payments, refunds, penalty, and interest
  • Access additional secure payment options and confidently manage payment transactions
  • Submit an appeal for both residential and commercial assessments
  • Utilize a more user-friendly portal with simpler navigation
  • Simplify the process to update billing information
  • Access web features for application status

Resources & Tutorials

MyTax.DC.gov has a simpler and more enhanced layout, in which taxpayers can visit https://otr.cfo.dc.gov/node/1198920 to access resource guides to help navigate the portal. Tutorial topics cover a range of real property tax functions, including:

  • Penalty and Interest Waivers
  • Homestead Senior Exemption Relief
  • Real Property Payment Plans
  • Real Property Payments
  • Tax Deferrals
  • Real Property Credit Card Payments
  • Mailing Address Changes

Stay connected by visiting MyTax.DC.gov for more information.

For assistance with MyTax.DC.gov or account-related questions, please contact our e-Services Unit at (202) 759-1946 or email e-services.otr@dc.gov, 8:15 a.m. to 5:30 p.m., Monday through Friday.

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District of Columbia Tax Assessments Indicate Real Estate Market Decline

The Office of Tax and Revenue (OTR) announced today that it has concluded its annual assessments of all real properties in the District of Columbia for Tax Year 2022 and have begun to mail assessment notices to all real property owners.

A total of 205,502 taxable and exempt real properties were appraised to reflect current market values on January 1, 2020. The assessment notice is NOT a tax bill. The real estate tax for property owners receiving new assessment notices for TY 2022 assessment is not due until March 2022.

The reassessments indicate that the District’s commercial real estate experienced a decline in market value, while the residential real estate marginally increased in value. The result of the reassessments is summarized below:

The TY 2022 real property assessment notice contains the proposed assessed value for a property as well as the estimated taxable assessment and important information related to property tax relief programs such as the homestead benefit and senior citizen tax relief. In addition, included on the notice is the assigned appraiser’s contact information for taxpayers who wish to discuss their assessment.

District property owners who believe their proposed TY 2022 assessment does not reflect the market value of their property are encouraged to file an appeal on or before April 1, 2021. The appeal process begins when a property owner submits a First Level Appeal Application to OTR.

Property owners can view their assessments and submit their appeal via OTR’s portal, MyTax.DC.gov.

MyTax.DC.gov Resources:

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OTR To Host a Series of Citywide Virtual Info Sessions to Help Real Property Tax Owners Navigate the MyTax.DC.gov Portal

Beginning March 10, the Office of Tax and Revenue (OTR) will host a series of citywide virtual information sessions to assist property owners in navigating the MyTax.DC.gov portal. The sessions will include a demonstration of the real property tax functionalities in the portal, and provide participants an opportunity to ask questions.

At the info sessions, property owners will learn how to:

  • View and pay their real property tax bills
  • View their real property assessments
  • Manage their online accounts
  • Apply for tax relief programs such as the Homestead Benefit
  • Access customer service and other help resources

To register for the session in your ward, please see the schedule below:

VIRTUAL INFO SESSION SCHEDULE
  AUDIENCE  DATEMEETING INVITE Please click the link below to access the virtual meeting.  TIME
WARDS 1 & 4WED, MARCH 10, 2021MARCH 10 REAL PROPERTY TAX INFO SESSION6:00 PM
  WARDS 2 & 3  WED, MARCH 17, 2021  MARCH 17 REAL PROPERTY TAX INFO SESSION
WARDS 5 & 6WED, MARCH 24, 2021MARCH 24 REAL PROPERTY TAX INFO SESSION
WARDS 7 & 8WED, MARCH 31, 2021MARCH 31 REAL PROPERTY TAX INFO SESSION
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First Half Real Property Tax Bills To Be Mailed

The Office of Tax and Revenue (OTR) will begin to mail more than 170,000 real property tax bills for the 2021 first half tax year to District property owners. Payments, which reflect current and past due real property tax liabilities, are due March 31.

With the addition of real property taxes to the MyTax.DC.gov web portal, property owners can view and pay their property tax bills online with ease. The additional features at MyTax.DC.gov will also allow property owners to:

  • Use major credit cards such as Visa, American Express, MasterCard, and Discover for their real property payments; ACH debit still accepted
  • Apply for tax relief benefits to reduce tax liabilities
  • Confidently manage payment transactions in a secure environment

Other Payment Options:

Wells Fargo Bank no longer accepts real property tax payments at its branches.

Taxpayers have the option to mail payments via US Postal Service to the following address:

 Government of the District of Columbia

Office of Tax and Revenue

Real Property Tax Administration

PO Box 98095

Washington, DC 20090-8095

MyTax.DC.gov Resources:

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