Who Is Eligible For The Maine Property Tax Fairness Credit? Property tax or rent can be a significant expense for many people, especially those with low or moderate income. If you are a Maine resident who owns or rents a home in Maine, you may be able to get some relief from this expense through the Maine Property Tax Fairness Credit.
This credit is a refundable credit that can reduce the amount of income tax you owe or give you a refund if you do not owe any tax. In this article, we will explain what the Maine Property Tax Fairness Credit is, who is eligible, how to apply, and what are the benefits of this credit. We will also answer frequently asked questions and provide some tips and resources to help you claim this credit.
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What is the Maine Property & Who Is Eligible For The Maine Property Tax Fairness Credit?
The Maine Property Tax Fairness Credit is a credit that can help eligible Maine taxpayers receive a portion of the property tax or rent paid during the tax year on their Maine individual income tax return. The credit is based on the amount of property tax or rent paid in excess of a certain percentage of the taxpayer’s income. The credit is refundable, which means that if the credit exceeds the amount of income tax due for the tax year, the excess amount of credit will be refunded to the taxpayer.
Who is eligible for the Maine Property Tax Fairness Credit?
Who Is Eligible For The Maine Property Tax Fairness Credit: People who are eligible are homeowners or renters who meet all of the following requirements are eligible for the Maine Property Tax Fairness Credit1:
- Were Maine residents during any part of the tax year;
- Owned or rented a home in Maine during any part of the tax year and lived in that home during the year as a primary residence;
- Paid property tax or rent on the primary residence in Maine during the tax year;
- Meet certain income and property tax and/or rent paid limitations during the tax year; and
- Are not married filing separately.
The income and property tax and/or rent paid limitations vary depending on the tax year, the filing status, and the age of the taxpayer.
For tax year 2023, the income limit is $40,000 for all taxpayers, and the property tax and/or rent paid limit is $2,200 for taxpayers under 70 years of age and $2,800 for taxpayers 70 years of age or older. For tax year 2022, the income limit is $40,000 for all taxpayers, and the property tax and/or rent paid limit is $2,200 for taxpayers under 65 years of age and $2,800 for taxpayers 65 years of age or older. For tax year 2021, the income limit is $40,000 for all taxpayers, and the property tax and/or rent paid limit is $2,200 for taxpayers under 65 years of age and $2,800 for taxpayers 65 years of age or older. For tax year 2020, the income limit is $40,000 for all taxpayers, and the property tax and/or rent paid limit is $2,200 for taxpayers under 65 years of age and $2,800 for taxpayers 65 years of age or older5.
For renters, the property tax and/or rent paid is calculated as 25% of the gross rent paid during the tax year. For homeowners, the property tax paid includes the amount paid by the taxpayer or on the taxpayer’s behalf by the State to the municipality under the Property Tax Deferral Program1.
How To Apply For The Maine Property Tax Fairness Credit?
To claim the Maine Property Tax Fairness Credit, taxpayers need to file Form 1040ME and Schedule PTFC/STFC for the tax year during which the property tax or rent was paid. The Schedule PTFC/STFC is used to calculate the amount of the credit and to provide information about the property tax or rent paid. The Form 1040ME and Schedule PTFC/STFC can be obtained from the Maine Revenue Services website1, or by calling (207) 626-8475, or by visiting any Maine Revenue Services office. The forms can also be filed electronically through the Maine FastFile system1.
The deadline to file Form 1040ME and Schedule PTFC/STFC is the same as the deadline to file the federal income tax return, which is usually April 15 of the following year, unless it falls on a weekend or a holiday. If the taxpayer is unable to file by the deadline, they can request an extension of time to file by filing Form 1040ME-EXT by the original due date. However, the extension of time to file does not extend the time to pay any tax due. The taxpayer should pay as much as they can by the original due date to avoid interest and penalties.
What Are The Benefits Of The Maine Property Tax Fairness Credit?
The Maine Property Tax Fairness Credit can provide significant relief to eligible homeowners and renters who pay a large portion of their income on property tax or rent. The credit can reduce the amount of income tax owed or increase the amount of refund received. The maximum amount of the credit for tax year 2022 is $750 for taxpayers under 70 years of age and $1,200 for taxpayers 70 years of age or older. The maximum amount of the credit for tax year 2021 is $750 for taxpayers under 65 years of age and $1,200 for taxpayers 65 years of age or older. The maximum amount of the credit for tax year 2020 is $750 for taxpayers under 65 years of age and $1,200 for taxpayers 65 years of age or older. The maximum amount of the credit for tax year 2019 is $750 for taxpayers under 65 years of age and $1,200 for taxpayers 65 years of age or older5.
The credit can help eligible homeowners and renters afford their housing costs and improve their financial stability. The credit can also stimulate the local economy by increasing the disposable income of the taxpayers and encouraging them to spend more on goods and services. The credit can also reduce the risk of foreclosure or eviction for some homeowners and renters who are struggling to pay their property tax or rent.
FAQs: Who Is Eligible For The Maine Property Tax Fairness Credit
Here are some of the common questions and answers about Who Is Eligible For The Maine Property Tax Fairness Credit:
Q: What if I own more than one home in Maine?
You can only claim the credit for the home that you lived in as your primary residence during the tax year. You cannot claim the credit for any other home that you own or rent in Maine or elsewhere1.
Q: What if I moved during the tax year?
You can claim the credit for the property tax or rent paid on both your old and new homes, as long as you lived in each home as your primary residence during the tax year. You need to provide the information about both homes on Schedule PTFC/STFC1.
Q: What if I live with someone else who pays the property tax or rent?
You can claim the credit for your share of the property tax or rent paid, as long as you meet the other eligibility requirements. You need to provide the information about the person who paid the property tax or rent and your share of the payment on Schedule PTFC/STFC1.
Q: What if I receive a property tax or rent refund from the State or the municipality?
You need to reduce the amount of property tax or rent paid by the amount of the refund received. You need to report the refund as income on your federal and state income tax returns1.
Q: What if I receive a property tax or rent subsidy from a government or non-government program?
You need to reduce the amount of property tax or rent paid by the amount of the subsidy received. You do not need to report the subsidy as income on your federal and state income tax returns1.
Conclusion: Who Is Eligible For The Maine Property Tax Fairness Credit?
The Maine Property Tax Fairness Credit is a valuable program that can help eligible homeowners and renters reduce their property tax or rent burden. The credit is a refundable credit that can lower the income tax liability or increase the refund amount for the taxpayers. The credit is based on the income and the property tax or rent paid by the taxpayers during the tax year. The credit has certain eligibility requirements and limitations that the taxpayers need to meet and follow.
The taxpayers need to file Form 1040ME and Schedule PTFC/STFC to claim the credit. The credit can provide significant benefits to the taxpayers and the local economy by improving the housing affordability and financial stability of the taxpayers and stimulating consumer spending and economic activity.
If you are a Maine resident who owns or rents a home in Maine, you should check if you qualify for the Maine Property Tax Fairness Credit and apply for it as soon as possible. You can find more information and resources about the credit on the Maine Revenue Services website1, or by contacting them by email, phone