A Certificate of Rent Paid (CRP) is a specific state tax document used by renters to claim property tax relief or credits, primarily associated with the state of Wisconsin. This form verifies the amount of rent a tenant has paid during the previous calendar year. The CRP form acts as a foundational piece of documentation that renters must obtain to potentially reduce their overall tax liability in the state.
The Purpose of the CRP Form
The CRP form serves a central function within Wisconsin’s tax structure by linking a tenant’s rental payments to the property taxes paid by the landlord. This mechanism allows qualifying low-income residents to apply for the Wisconsin Homestead Credit. The state legislature recognizes that a portion of every rent payment implicitly covers the property tax burden of the rental unit. The form certifies the total rent paid, which the state then uses to calculate a “property tax equivalent.” Generally, 20% of the rent paid is considered the amount attributable to property taxes, which forms the basis for the Homestead Credit calculation.
Responsibilities for Issuance and Use
The responsibility for generating and signing the CRP form rests with the property owner or landlord. They are required to provide this document to any tenant who requests it, as the tenant needs it to claim the Homestead Credit. The Wisconsin Department of Revenue provides the standardized document, officially known as the Rent Certificate, which landlords must complete accurately. State law prohibits a landlord from charging a fee to a tenant for providing this necessary tax information. The tenant’s primary responsibility is to request the CRP form from their landlord and ensure its accuracy before filing their tax return. If a landlord refuses to sign, the tenant may submit the form filled out with their best knowledge, but they must provide verifiable proof of rent payments, such as copies of canceled checks or money order receipts.
Essential Information Reported
The CRP form requires specific data from both the renter and the landlord to ensure the information is accurate and verifiable. The landlord section must include the full name of the property owner, the address of the rental property, and their Tax Identification Number (TIN) or Social Security Number. The form also asks whether the property is subject to property taxes, which is a condition for the renter to claim the credit. Key information required includes the total rent collected from all occupants for the unit during the tax year and whether heat was included in the rent, as this affects the property tax equivalent calculation. The landlord must certify the information is true, correct, and complete with a hand signature, and alterations like whiteouts or erasures can void the document.
Integration with State Tax Filing
The CRP form is essential for renters filing the Wisconsin Homestead Credit Claim, which is submitted using either Schedule H or the simplified Schedule H-EZ. The data from the CRP form, specifically the rent paid for occupancy only, is transferred directly onto this schedule. The total rent paid is used to calculate the property tax equivalent, which is 20% of the rent if heat was included, or 25% if heat was not included. The final allowable Homestead Credit is determined by comparing the calculated credit amount, based on household income, against the property tax equivalent amount. Claimants must attach the original, landlord-signed Rent Certificate or verified copy to their Schedule H or H-EZ when filing, as the claim will not be processed successfully without this documentation.