We all get a lot of junk mail. So, if you get a letter that says you have unclaimed money you may not trust it. One viewer sent Amy Davis a letter she thought was fake but Amy had the feeling right away that it might be real. You should know about this in case you get a similar letter in the mail.
Letter in mail promises unclaimed money
Lynn Roman explains the letter she received in the mail that got her attention.
“I received that piece of correspondence in the mail from unclaimed refunds, and it said to respond that I had a deadline. This was a final notice received. It does indicate that I have a refund of around $80, $180, $200, that are unclaimed funds. So naturally, it piqued my interest and I wanted to look further into it. They provided a phone number on the letter. It has a Houston address, so the information on this letter looks like it’s coming from a reputable business,” said Roman.
She called the 1-800 line. The lady who answered didn’t give much information but wanted her to set up an appointment.
Money related to ignored homestead exemption
Roman moved into her home in 2018 and had not filled out the paperwork to file a homestead exemption.
That exemption saves you a lot of money in property taxes every year. Property tax records and what exemptions you have is information that is right online, and anyone can get it.
Private companies check property records to determine who has lived in a home for some time with no homestead exemption. Then they contact you to say, “I can help you get this money you are owed but you have to pay me a portion of it.’
Think of it as a finder’s fee. There is nothing illegal about what the company is doing. But filling out the form to get a homestead exemption will take you about five minutes.
Jack Barnett with the Harris County Tax Appraisal District explains how this works.
“Many people get those letters. We’ve heard increasing complaints over the last several years, and they will file a homestead exemption for you if you don’t have one. Why you would want to hire them to do that is beyond me. It’s so easy to do on your own. It’s free. You get to keep all the money that you would have in a refund. And generally, we could go back two years if you did not have a homestead exemption,” said Barnett.
“Amy, I have heard that you everyone who owns a home should have a homestead, but my procrastination has led me to be lazy with this regard. And apparently there’s $8,200 out there with my name on it. Whether it’s an overpaid tax, I don’t know. As a home buyer, I thought that stuff was rolled up into my mortgage. I honestly did not do my due diligence to ensure that I filed for one outside of when I, you know, signed up to purchase the home,” said Roman.
RELATED: How to get money back on your home taxes
There is a homestead exemption form or application on the Harris County Appraisal District website or you can get it from the Texas county tax office where you live.
When you file you will be refunded for the money you overpaid for the last two years that you didn’t have an exemption and your property taxes moving forward will be lower.
What to know if you get a letter claiming you have unclaimed property tax refund.
