Seniors could benefit from tax, rent refund program

As summer dissolves into a fond memory, it is time to think about taxes. Lest you think I have lost my calendar (or worse) let me assure you I am not referring to income taxes, but to tax and rent refunds from the Maine Revenue Service.

The Maine Residents Property Tax and Rent Refund Program provides tax relief for homeowners or renters of any age who live in Maine. However, to receive a refund, you must meet the following qualifying guidelines for the general program:

. You were a Maine resident for the entire 12 months of 2002.

. You owned or rented a home in Maine for all of 2002, and lived in it for at least six months of that year.

. You lived alone and had a total household income in 2002 of not more than $29,900, or you lived with a spouse or dependent and had a total household income in 2002 of not more than $46,300.

. You had a 2002 property tax bill that was more than 4 percent of total household income, or you paid rent in 2002 that was more than 22 percent of total household income. Or, you could qualify by being age 62 or older and having an income of below $11,900 for one person, or $14,800 for two people.

“We want seniors to be careful of self-screening, because sometimes they could actually be eligible for the refund and not realize it,” said Deb Chapman, director of community services at Eastern Agency on Aging. “It is best to ask us if you are unsure of your eligibility.”

Eastern Agency on Aging has the form available, and consultants are trained to help any person age 60 or older with completing it.

You will need to have, if you filed income tax, a copy of your federal and Maine income tax return for 2002, and a copy of your property tax bill for the period covering April 2002 – or rent receipts.

If you did not file a tax return for 2002, you will need your bank statements for 2002, the 1099 form that reports your 2002 Social Security earnings, papers that show any other earnings, and a copy of your property tax bill or rent receipts. The deadline for filing is Dec. 31.

If you filed for a refund last year, your 2003 application will be mailed to you.

“Don’t be surprised if your form looks a little different this year,” said Chapman. “The low-cost drug card form used to be combined with the tax and rent form. This year each program has its own separate application. Consequently, the tax and rent form is shorter and much easier to complete.”

If you have the low-cost drug card now, a renewal notice will be sent to you automatically, Chapman added.

Once you’ve shipped off your tax and rent application you can expect to see a check, providing you qualify, in four to six weeks. The Maine Revenue Service will figure the exact amount of your refund.

“Some folks complete the application themselves – it is just one page front and back – and want us to review it before it is sent, and we are happy to do that,” she added. “We can also talk seniors through the process on the phone or, if they prefer, we’ll sit down with them and complete the application together. In the event they are unable to get into our office, we are happy to make home visits. Eastern Agency is eager to provide assistance.”

Remember, time is money. The sooner you apply, the sooner you may have a little extra cash in your pocket.

Carol Higgins is director of communications at Eastern Agency on Aging. For information on EAA programs and services, call the resource and referral department at 941-2865 or log on www.eaaa.org.