Sales Tax Exemption for At-Home COVID-19 Tests

Pursuant to the DC Code 47-2005(14), at-home COVID-19 tests are exempt from the District’s sales and use tax. Retail businesses should no longer add a sales tax to at-home COVID tests purchases.

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

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Individual Income Tax Filing Season Officially Begins Today

Today, the Office of Tax and Revenue (OTR) officially begins accepting and processing electronically and paper filed District individual income tax returns for Tax Year 2021. 

The following reminders will assist District residents in preparing their returns this filing season:

File Electronically (e-File) and Direct Deposit: OTR expects to receive more than 400,000 individual income tax returns this year. E-filing tax returns and direct deposit are a winning combination this tax filing season. E-filing is faster, helps minimize errors, and provides an electronic filing acknowledgement. Opting to direct deposit tax refunds to a chosen bank account is safer and there is no risk of a lost or stolen check.

D-40 Individual Income and Standalone Schedule H Tax Return: Taxpayers will have the option to file their Tax Year 2021 individual income or standalone Schedule H tax return by logging into their MyTax.DC.gov account.

Tax Returns Processing and Refunds: OTR’s enhanced security measures to safeguard taxpayers’ identities and to combat theft/tax refund fraud may result in longer processing times for some tax returns and associated refunds. The processing window for selected tax returns could be up to eight weeks.

Check Refund Status: Taxpayers can check the status of their refund via OTR’s tax portal, MyTax.DC.gov by using the “Where’s My Refund” tool on the homepage. This feature is available 24/7 and will provide an update on refund statuses.

Individual Income tax filing deadline: The filing deadline to submit Tax Year 2021 individual income tax returns or an extension to file and pay tax owed is Monday, April 18, 2022. OTR will be closed on Friday, April 15 in observance of Emancipation Day.

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Individual Income Estimated Tax Booklet (D-40ES) No Longer Mailed

The Office of Tax and Revenue (OTR) will no longer mail the individual income estimated tax booklet (D-40ES). Returns and payments may be submitted via MyTax.DC.gov or electronically through a tax professional or software vendor.

The form/coupon can also be downloaded from OTR’s website at otr.cfo.dc.gov under “Forms” and mailed to the address listed in the instructions.

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District of Columbia Tax Filing Season to Begin on January 24

The Office of Tax and Revenue (OTR) announced today that it will begin to accept and process Tax Year 2021 individual income tax returns on Monday, January 24, 2022. OTR is following the lead of the Internal Revenue Service.  

As District taxpayers gather their documents and prepare for the filing season, OTR reminds them of several key changes:

What’s New and Changes:

  • D-40 Individual Income and Standalone Schedule H Tax Return. Beginning with Tax Year 2021, taxpayers will have the option to file their individual income or standalone Schedule H tax return by logging into their MyTax.DC.gov account.
  • DC Fillable Forms and Free File: OTR has retired its D-40 fillable form option and will no longer participate in DC Free File.  However, taxpayers can now file their 2021 D-40 form and schedules at no cost via the MyTax.DC.gov portal.
  • D-40ES, Individual Income Estimated Tax Booklet: OTR will no longer mail the Estimated Payment for individual income tax booklet (D-40ES).  Returns and payments may be submitted via MyTax.DC.gov or electronically through a tax professional or software vendor. The form/coupon can also be downloaded from OTR’s website at otr.cfo.dc.gov under “Forms” and mailed to the address listed in the instructions.
  • Standard Deduction Increased: The standard deduction has increased for Tax Year 2021 as follows:
    • From $12,400 to $12,550 for single filers and married/registered domestic partners filing separately
    • From $18,650 to $18,800 for head of household filers
    • From $24,800 to $25,100 for married/registered domestic partners filing jointly and qualifying widow(er) with dependent child(ren) filers
  • Additional Standard Deduction. If born before January 2, 1957, or blind, an additional standard deduction of $1,350 ($1,700 if single or head of household) is allowed – use Schedule S, Calculation G-1. The Schedule S, Calculation G-1 must be submitted with your return.
  • Schedule H: The Homeowner and Renter Property Tax Credit amounts for Tax Year 2021 are:
    • Property tax credit increases from $1,200 to $1,225
    • Schedule H federal AGI eligibility threshold for under age 70 increases to $56,200
    • Schedule H federal AGI eligibility threshold for age 70 and older increases to $76,700 
  • DC Earned Income Tax Credit (EITC) for Childless Workers: The formula for determining the DC EITC for childless workers has changed. A DC EITC Worksheet for Filers Without A Qualifying Child is included in the Individual Income Tax Forms and Instructions Booklet.
  • Earned Income Tax Credit (EITC). The American Rescue Plan Act of 2021 (ARPA) includes changes to the Earned Income Tax Credit. For taxable years beginning January 1, 2021:
    • Taxpayers whose qualifying children fail to meet certain requirements may now be eligible for the earned income tax credit.
    • The earned income tax credit is now allowed in the case of separated spouses if certain requirements are met.
  • Schedule U – Additional Miscellaneous Credit and Contributions
    • DC Government Employee first-time home buyer credit is expired
    • DC Low-Income Housing Tax Credits (LIHTC) are now available to entities/taxpayers investing in qualified projects located in the District. See instructions.
  • Pre-Acquisition Disclosures: The Consumer Financial Protection Board (CFPB) has published its final Prepaid Account Rule, creating detailed consumer protections for prepaid accounts. For Tax Year 2021, if taxpayers elect to receive a refund using the U.S. Bank ReliaCard™ or use a pre-paid card to make payments, they are required to review and acknowledge the Pre-Acquisition Disclosures (Short and Long Forms) prior to selecting the ReliaCard option as method for receiving a refund or using a pre-paid card when making a payment. Click here to learn more.
  • Tax Returns Processing and Refunds: OTR’s enhanced security measures to safeguard taxpayers’ identities and to combat theft/tax refund fraud may result in longer processing times for some tax returns and associated refunds. The processing window for selected tax returns could be up to eight weeks.

Filing Deadline:

  • Individual Income tax filing deadline:  The filing deadline to submit Tax Year 2021 individual income tax returns or an extension to file and pay tax owed is Monday, April 18, 2022. OTR will be closed on Friday, April 15 in observance of Emancipation Day.
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OTR to Hold Its Annual Tax Practitioner’s Institute Workshop Virtually on January 13, 2022

The Office of Tax and Revenue will hold its annual “Tax Practitioners Institute” on Thursday, January 13, 2022, from 9 am to 4 pm EST. It will take place online using the Teams platform. The seminar is free, but registration is required. Please register here.

At the seminar OTR will provide tax preparers a comprehensive presentation, with several speakers and an advance look at what’s new for the tax-filing season and for the new tax year.

Registration:
Registered preparers will receive an email in advance of the seminar, which will include a link to use to join the seminar on January 13.

Do you have questions that you would like addressed during the seminar?
Email those questions in advance, using the following email address: communicationsotr@dc.gov. During the seminar, the presenters will answer as many of those questions as possible. (Please do not include any client-specific information.)

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DC Office of Tax and Revenue Reopens Walk-In Center and Recorder of Deeds Office for In-Person Services on October 4

Online services remain available at MyTax.DC.gov and is the most convenient and effective way to complete tax transactions.

(Washington, DC) – Today, Deputy Chief Financial Officer Keith J. Richardson announced that the DC Office of Tax and Revenue (OTR) will reopen its Walk-In Center and Recorder of Deeds (ROD) office for in-person services, located at 1101 4th Street, SW, on Monday, October 4.

Appointments are preferred; however, walk-in service will be available on a first-come, first-serve basis, Monday through Friday, from 9am to 4pm. Taxpayers can schedule an appointment by visiting https://appt.cfo.dc.gov/qmaticwebbooking/index.html#/.


Online Services at MyTax.DC.gov:

OTR continues to offer most services online at MyTax.DC.gov for individual income, business, and real property taxes, such as:

  • Requesting a Certificate of Clean Hands
  • Registering a business
  • Filing tax returns and remitting payments
  • Providing documentation requested for refunds
  • Obtaining copies of tax bills and notices
  • Recording instruments and collecting recordation fees and taxes (ROD)
  • Obtaining copies of recorded documents (ROD)

Taxpayers are reminded that OTR no longer prepares District of Columbia individual income tax returns at its Walk-In Center. 

Only taxpayers obtaining service will be allowed into the service centers (limited exceptions for disabled customers). A facial covering/mask must be worn prior to entry and at all times during the appointment. A valid government issued ID must also be presented.

Public computers within the service centers will not be available for use at this time.

Taxpayers who may have technical questions about the appointment calendar can call OTR’s call center at (202) 727-4TAX (4829) or the Collections Unit at (202) 724-5045.

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DC Office of Tax and Revenue to Hold Its 2021 Real Property Tax Sale on October 13th and 14th

The Tax Sale will consist of Vacant (Class 3) and Blighted (Class 4) Properties Only

(Washington, DC) – The District of Columbia Office of Tax and Revenue (OTR) announced today that it will hold its public Tax Sale beginning October 13th at its offices at 1101 4th Street, SW, 2nd Floor, Washington, DC 20024. This year’s Tax Sale will consist of Vacant (Class 3) and Blighted (Class 4) real properties only.

A list of the properties by parcel, square, suffix, and lot number, with the name of the owner of record and the unpaid tax amount, will be available on OTR’s website, as well as The Washington Times and Washington Informer on October 6th and October 7th, respectively.

Online Seminars:

OTR will conduct two online seminars, via WebEx, to explain the Tax Sale procedures to prospective bidders. The seminars will be conducted as follows:

  • Friday, October 8th: 9:30 am to 12 pm and 1:30 pm to 4 pm

Mandatory registration for the online seminars will be held September 23rd through October 6th and can be completed by:

  1. Visiting MyTax.DC.gov
  2. Clicking “Real Property” then “View More Options”
  3. Clicking “Tax Sale Registration” then “Register For A Tax Sale Seminar”

Note: The WebEx invitation link will be sent to registered participants at the email provided at the time of registration a day prior to the scheduled Tax Sale. A person with a communication impairment requiring an interpreter for the Sale shall notify OTR of the need for an interpreter no later than October 1, 2021.

Tax Sale Registration:

Registration for the Tax Sale is mandatory and begins October 4th and continues until the final day of the sale. A $200 Tax Sale fee will be added to each property at the time of the sale. Purchasers are also required to complete Form FR-500, Combined Business Tax Registration Application, prior to registering. The form is available at OTR’s portal, MyTax.DC.gov.

OTR has mailed a Notice of Delinquency to advise applicable property owners of the Tax Sale. The notice can also be viewed by visiting MyTax.DC.gov under the “Billing History” section. A comprehensive list of tax sale notices can be also viewed here.

For more information on the Tax Sale process, please call (202) 727-4TAX (4829).

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Request a Certificate of Clean Hands at MyTax.DC.gov

Obtaining a Certificate of Clean Hands from the Office of Tax and Revenue is a simple process by visiting MyTax.DC.gov on your computer or smart phone.

For additional information, please contact OTR’s Compliance Administration, Collections Division at (202) 724-5045 or email CleanHands.cert@dc.gov.

For technical support, contact OTR’s E-Services unit at (202) 759-1946. If you are logged into your MyTax account, you can send a webmail message to e-Services directly from the portal.

Resources:

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MyTax.DC.gov Allows District Homeowners To Complete Their Real Property Tax Transactions Simpler, Faster and Safer Than Ever

OTR reminds property owners to utilize the MyTax.DC.gov portal to complete their real property tax transactions – it’s simpler, faster, and safer.

With the MyTax.DC.gov portal, property owners can:

-Review and pay property tax bills online with ease

-Apply for tax relief benefits to reduce tax liabilities

-View tax assessments for multiple years

-Confidently manage payment transactions in a secure environment, and much more

Questions:

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.

Resources:

Not quite sure how to utilize MyTax.DC.gov? Tutorials and FAQs are available to help.

Tutorials

FAQs

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Are You Aware of the Homestead Deduction and Senior Citizen or Disabled Tax Relief Benefits?

Last week, OTR began mailing real property tax bills for the 2021 second half tax year to District property owners. OTR included information about the Homestead Deduction and Senior Citizen or Disabled Tax Relief benefits with the tax bills such as: How to apply for the benefits, how to notify OTR if your property becomes ineligible for the benefits, and how to file an application for the ASD-100 and ASD-105.

Should you have additional questions, please contact our Customer Service Center at (202) 727-4TAX (4829).  For assistance with MyTax.DC.gov, please contact our e-Services Unit at (202) 759-1946, Monday through Friday, or email e-services.otr@dc.gov, between the hours of 8:15 am to 5:30 pm.

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