What Is Arizona Form 140PTC for the Property Tax Credit?
A guide to Arizona Form 140PTC, which provides a refundable property tax credit for qualifying residents based on household income, age, and housing status.
Arizona Form 140PTC provides a refundable tax credit for certain residents to help offset the cost of property taxes. This credit is available to individuals who either paid property taxes directly on a home they own or indirectly through rent paid to a landlord. The form allows qualified individuals to claim a refund from the state, which is calculated based on their household income and the amount of property tax or rent paid during the year.
Eligibility Requirements for the Property Tax Credit
To qualify for the property tax credit, an individual must meet certain requirements. The primary applicant must have been at least 65 years old by the end of the tax year. An exception is made for individuals under 65 who received Title 16 Supplemental Security Income (SSI) payments during the year. Proof of receiving these benefits is required when filing.
Residency is also a requirement. The claimant must have resided in Arizona for the entire calendar year for which they are filing. They must have also occupied the property, whether owned or rented, for the full year as their primary residence. Only one property tax credit claim is permitted per household.
Eligibility also depends on household income. For an individual living alone, total household income must be less than $3,751. If the claimant lived with a spouse or other individuals, the combined household income threshold is $5,501. “Household income” includes sources like wages, business income, and pensions, but excludes Social Security, railroad retirement benefits, and veteran’s disability pensions.
Required Information and Documentation
To complete Form 140PTC, you must gather personal information for all household members. This includes their full names, Social Security numbers, and birth dates.
You will need documentation to substantiate your total household income. This involves collecting income statements from the year, such as Form W-2 for wages, Form 1099-R for pensions, and statements for business income, interest, or dividends. Proof of Title 16 SSI payments is required if you are qualifying based on disability.
Documentation requirements differ for homeowners and renters. Homeowners must provide property tax statements showing the total tax paid on their primary residence. Renters need their landlord’s name and address, the total rent paid, and must complete Form 201 to certify the rent paid. The forms can be downloaded from the Arizona Department of Revenue website.
Calculating the Credit and Completing the Form
The first step is to calculate your total household income. The form provides a worksheet in Part 1 where you must list various types of income for every person in the household. The sum of these amounts is entered on line 10 of the main form.
Once household income is determined, the form directs you to a schedule to find your potential credit. If you lived alone, you will use Schedule 1; if you lived with others, you will use Schedule 2. These tables cross-reference your household income with property taxes paid to determine a preliminary credit amount. The maximum credit available is $502.
For homeowners, enter the actual property taxes you paid on line 12. Renters must calculate the portion of their rent considered to be for property taxes. This calculation is done on the Renter’s Certificate (also labeled as Schedule 1 on the form), which converts total rent paid into an equivalent property tax figure for line 13. The final credit amount is the lesser of the potential credit from the income schedule or the property taxes paid.
How to File Form 140PTC
If you are required to file a state income tax return, you must attach Form 140PTC to your Arizona Form 140. If you are not required to file a state return, you can file Form 140PTC by itself to claim the refundable credit.
The completed form must be mailed to the Arizona Department of Revenue at the address provided in the form’s instructions. Do not staple any supporting documents, like proof of taxes paid or SSI benefits, to the form.
The deadline to file Form 140PTC is April 15. If approved, the credit will be issued as a direct refund check if you filed the form by itself. If filed with an income tax return, the credit is first applied to any taxes you owe, with any remaining amount refunded.