Tax Credit Eligibility for Arizona Senior Renters

Tax Credit Eligibility for Renters

You may meet the tax credit eligibility requirements for senior renters in Arizona and not even know it or you may have already learned that you need to meet a few basic requirements before you’re eligible for the Arizona Property Tax Refund Credit:

  • You are at least 65 years of age or older at the end of the year on December 31st.
  • You pay your own rent without Section 8 benefits, and you don’t live in public housing.
  • You pay rent tax and meet the length of one full year residency from January 1 to December 31.
  • You meet the state's total household income requirement (explained in point 3 below).

It's now time to go into a little more detail to help you determine whether you’re a good candidate to file for this tax refund.

Determining Your Tax Credit Eligibility

If you’re uncertain about your eligibility, go through this checklist before ruling yourself out. You may have more qualifications than you give yourself credit for right now.

1.  You must live in a rental property that charges property tax on your rent payments for the entire year, and you must live in the same rental unit for the full year. If you experience a change in property manager ownership of your rental residence like I did in 2016, then you may still qualify for the property tax refund just as I qualified. 

2.  You must be named on the leasing agreement as the person responsible for paying the rent for tax credit eligibility.

If you live in an apartment or other rental home and your name is on the lease as the responsible party in charge of that unit, then you likely pass this qualification for the tax credit. If you have roommates or live with a family member and the lease is under their name, then you likely won’t qualify. You should have solid proof that you are responsible for your rental property and pay all of the rent on your own.

3.  You must meet Arizona State household income requirements to qualify for tax credit eligibility.

The State of Arizona does place some income restrictions on seniors applying for this property tax relief program. The goal of the tax credit is to help seniors who are struggling to live comfortably with limited income. If you have substantial income due to smart investments, continued employment, entrepreneurial projects, or other income streams, then there is a chance that you won’t qualify for the tax refund based on your income for the year you earned it.

The state has put a CAP on how much total household income seniors can earn while still qualifying for the property tax credit. The current restrictions are as follows:

  • If you’re single and live alone, your total household income cannot exceed $3,751.
  • If you’re married, or other persons live with you, your total household income cannot exceed $5,501.

Please note that in both bullet points above, total household income refers to income on an annual basis from each household member.

It is important to note that a senior’s monthly Social Security retirement income benefit DOES NOT count towards this income restriction. This source of income isn’t included in your total household income, and that allows many seniors to qualify even though they may make their monthly rental payments from their social security checks.

The Truth About the Tax Credit Eligibility for Senior Renters

After first discovering that the Arizona Property Tax Refund Credit is available to renters age 65 or older, it wasn’t long before I learned one hard truth: it’s nearly impossible to successfully qualify and apply for this tax relief without the guidance of someone with great knowledge about the program. You have to file the right forms at the right time and make sure that you meet all eligibility criteria, and there are many loopholes where someone who technically qualifies may get turned away.

I have successfully qualified for this tax credit for eight consecutive years now, and I enjoy helping people like you get what they deserve through this system. I welcome the opportunity to help you successfully file by the tax deadline of April 15 each year, a deadline which always seem to be just around the corner. So now is the best time to learn more about this program and to get your hands on the correct forms.

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