Are you ready to save some extra money by the end of 2022 through low income tax credits? Maybe you thought that taxes were a problem of the past once you retired and stopped working a regular job.
Perhaps it’s been many years since you have filed any type of tax paperwork. I’m here to tell you that many seniors are filing for tax credits that are independent of income tax, and I encourage you to do the same for the two tax credits discussed below.
Do you rent your home? If so, there’s a good chance that you are paying property tax as a part of your monthly rental payment. You can check this out by looking at your lease, but that paperwork may not always disclose the exact amount that you are paying in taxes because sometimes that information may or may not appear ambiguous in the lease. You may have to talk to your landlord to find this information out. Often the added property tax is hidden in your lease, a legal document specifying what your monthly rent payment will be, so don't be afraid to ask if you don't know what the tax amount is that you are paying with your monthly rent.
The State of Arizona started the Property Tax Refund Credit program, as a way to refund those property taxes to state residents. You do have to live at your eligible rental property the entire year and remain a resident of the state for the full year. If you’re age 65 or older before the end of the year and your income stays under the current CAP, you can file two simple forms that entitles you to a refund of the property taxes you are paying through your rental payments all year.
I have filed for this tax credit for eight consecutive years, and I received $3,465 total as a result. It didn’t take me much time, and I was surprised at how easy it was to prove that I’m qualified. Most people can just look at their leases to see that they are in fact paying property tax and are listed as a responsible party for the rent due for their homes. From there, it’s just a matter of getting your hands on the right forms and filing them.
This is a special tax credit that benefits low-income seniors and disabled persons receiving full disability benefits. This credit is tied to your income tax filing, and your eligibility will depend on your filing status and other factors. If you still file income tax and want to pay as little as possible to the government, this is a good tax credit to explore further. (Note: link not yet updated for 2022 but you will get the general idea of what tax credits are available to you from this 2021 e-File list). e-File is the key to claiming and receiving senior tax credits for the elderly and disabled.
It’s important to note that even nontaxable income like Social Security may stand in your way of qualifying for this low-income tax credit if it is considered excessive. The program is designed to benefit those with limited financial resources, so you will have to prove that you have limited funds and are in need of more money to live comfortably. This is done through simple reporting of your income and other financial gains in the year in question.
If you’re interested in qualifying for either of these senior tax credits, I suggest you start by gathering all paperwork that proves you’re qualified for the program. I don’t want you to miss out on money that is rightfully yours, but I also don’t want you to get denied because you weren’t prepared for the filing process.
I have additional resources that can help you learn more about the Arizona Property Tax Refund Credit, the tax credit I have the most experience with, which I explore in my eBook and I can even walk you through the process and help you determine if you’re likely qualified. I’ve gone through the beginning stages as a first-time filer, and I want you to avoid some of the potential mistakes or glitches you may encounter if you've never filed before, mistakes that would in effect deny you a refund even if you are qualified.
Think of low income tax credits as money-earning opportunities. You pay money into something during the year, and then the state gives it back to you because you meet a set of qualifications. It really is that simple, If you are a senior renter in Arizona I am here to walk you through the process of applying for the Arizona Property Tax Refund Credit, my tax credit specialty. Many retired or disabled seniors qualify for this refund credit without even realizing it, so study this site and take notes. If you believe that you should qualify and file for the Arizona Property Tax Refund Credit, allow me to help you to be a successful first-time filer for the property tax on rent you paid in 2022. In my eBook, available for purchase and download on this website, I walk you through the steps. Simply click on the image of my eBook next to my photo on my homepage to get started by checking your eligibility qualifications.