What if my income exceeds the federal adjusted gross income limit after the first year?
If your income exceeds the FAGI limit after the initial year of acceptance, your eligibility may be affected. You may be responsible for all or part of your property taxes for that year. If your FAGI is over the limit, some of your property taxes may be paid. The deferral amount will be reduced by 50 cents for each dollar over the $36,500 income limit. The balance of your account continues to be deferred. If your income falls below the FAGI limit in following years your property taxes will be paid. Example: If your FAGI is $38,500, your deferral amount will be reduced by 50 cents for each dollar over $35,000. You are $2,000 over the limit. At 50 cents on the dollar, your deferral is reduced by $1,000. If your property taxes are $2,500 the amount deferred is reduced by $1,000. The department will pay $1,500 of your property taxes; you are responsible for paying $1,000 to the county. If the amount of your income exceeds the FAGI by more than double your property tax bill, no taxes will b
