If you are an Arizona resident for the entire year, and you are 65 or older, or you received Supplemental Social Security Title 16 payments during the year, you may be able to claim a property tax credit when you file your annual Arizona state income tax return. You can also claim the credit even if you do not have to file a state income tax return. The maximum credit is $502 if your household income is $1,750 or less for the year and you live alone or $2,500 or less if you live with your spouse or another person. The credit decreases proportionately as your level of household income increases, up to a maximum of $3,751 if you live alone or $5,501 if you live with your spouse or another person.
For purposes of this property tax credit your household income does not include social security benefits, railroad retirement benefits, workers’ compensation loss of time insurance payments, Arizona unemployment benefits, veteran’s disability pensions, welfare or other relief from a governmental agency, gifts, or property tax refunds you received last year.
You can claim the property tax credit on your main home, whether you own or rent. If you lived in a nursing home in Arizona and you used your social security or other personal funds to pay the nursing home you can qualify for the credit. You also qualify if you were a shareholder of a cooperative corporation or member of a condominium association in Arizona and the unit you own was your main home.
To claim the property tax credit you need to complete Arizona Form 140PTC, Property Tax Refund (Claim). You can download the form and instructions on the Arizona Department of Revenue website. You should attach the completed Form 140PTC to your Arizona income tax return, using either Form 140 or Form 140A. If you do not have to file an Arizona income tax return you can claim the property tax refund by mailing Form 140PTC to: Arizona Department of Revenue, PO Box 52138, Phoenix, AZ 85072-2138.
You need to attach certain documents to Form 140PTC to claim the credit or refund. You must attach a statement from the Social Security Administration showing your name and address, social security number, the Title 16 SSI payments you received or are due to receive and the period they cover, and the date the Social Security Administration issued the statement. You must also attach a copy of a statement showing the property taxes you paid during for the year. This can be a copy of the property tax statement from your mortgage company, a tax bill stamped “Paid” by your county treasurer, or your property tax bill with copies of the front and back of your canceled checks.
If you rent your property you should attach Arizona Form 201, Renter’s Certificate of Property Taxes Paid. You must get this form from your landlord. Form 201 can be downloaded from the Arizona Department of Revenue website. If you own a mobile home but rent the space you should file Form 140PTC as a renter and attach a Form 201 that you complete yourself, along with a statement of your property taxes. If you live in a nursing home you should request Form 201 from the nursing home administrator. If you are a shareholder of a cooperative corporation or a member of a condominium association you must attach a statement that shows your share of the assessed property taxes.
If you pay your property taxes in two installments, you should report on Form 140PTC the taxes you actually paid during the year. This may include an installment for the previous year and an installment for the current year.
Only one property tax credit is allowed per household each year. If someone else in your household claims the credit, you would not be eligible for it.
Sources:
Is there any special tax relief for seniors?” – Law for Seniors
“Pima County Tax Relief”, Green Valley Arizona
“Property Tax Refund (Claim) Instructions” – Arizona Department of Revenue
“Property tax relief for seniors in Arizona” – Paul B. Bartlett, P.C.
