Claiming Dependent and Property Tax Credits

As with federal income tax returns, the state of Arizona offers various credits to taxpayers. One credit taxpayers inquire frequently on is the dependent tax credit. Prior to the 2019 return, Arizona allowed taxpayer's to claim an exemption for each dependent. Beginning with the 2019 tax return, the dependent deduction was replaced with a dependent credit. The credit is $100 for each dependent under 17 years of age and $25 each for all other dependents. The credit is subject to a phase out for higher income taxpayers. 

To get the dependent credit (exemption for years prior to 2019), individuals must enter all information requested under the dependent section on front of Forms 140, 140A, 140PY, or under the dependent section on page two of Forms 140PTC and 140X. If there are more dependents to enter, taxpayers can use the continuation sheet provided with each of these forms. Individuals want to include names, social security numbers, relationships and months the dependents lived in the home. Individuals who do not furnish this information may lose the dependent credit (exemption for years prior to 2019).

As for the property tax credit, individuals may qualify for a credit if they were residents of Arizona the entire year and meet all of the following criteria:

• Paid property taxes or rent on a main home in Arizona during the tax year.
• Were 65 or older by December 31 of the tax year or received Title 16 Supplemental Security Income.
• Earned a total household income less than $3,751 and the taxpayer lived alone, or the total household income was less than $5,501.

Taxpayers should note that property tax claims must be filed on or before the due date, including any extensions, for the year in which the credit is being claimed. They can request an extension of up to six months when filing Form 140PTC. Please read the instructions on the form.

If you have questions on this form, contact [email protected].