Schedule PTFC/STFC: Property Tax Fairness Credit and Sales Tax Fairness Credit (2024)
Maine · Maine Revenue Services · Used for tax years 2024
Maine Schedule PTFC/STFC calculates the refundable Property Tax Fairness Credit and Sales Tax Fairness Credit for 2024. It reports income, property tax or rent paid, and information used to determine the credits, and is enclosed with Form 1040ME.
Who files this form
Use Schedule PTFC/STFC with Form 1040ME to claim the 2024 Property Tax Fairness Credit, Sales Tax Fairness Credit, or both. It is for Maine residents and part-year residents only.
Property Tax Fairness Credit
You may qualify if all of these apply:
- You were a Maine resident during some part of 2024.
- You owned or rented a home in Maine and lived there as your principal residence during the year.
- Your property tax paid was greater than 4% of your total income, or your rent paid was greater than 26.67% of your total income. Limits apply to the property tax or rent you can count.
- Your total income was below the applicable limit below.
For people under age 65, the income limits depend on filing status and the number of qualifying children and dependents on Form 1040ME, line 13a:
| Filing status | 0 | 1 | More than 1 |
| --- | --- | --- | --- |
| Single | $61,250 | $61,250 | $61,250 |
| Head of household | $80,000 | $80,000 | $97,500 |
| Married filing jointly or qualifying surviving spouse | $80,000 | $97,500 | $97,500 |
Your income must be less than the listed amount. If you are age 65 or older, use an income limit of less than $100,000 instead.
Sales Tax Fairness Credit
You may qualify if you were a Maine resident during some part of 2024 and your total income was no more than:
- $31,750 if single.
- $49,850 if head of household.
- $62,500 if married filing jointly or a qualifying surviving spouse.
The credit amount depends on your income, filing status, and qualifying children and dependents.
You cannot claim either credit if you file married filing separately. You cannot claim the Sales Tax Fairness Credit if someone else claims you as a dependent.
What you'll need
Have the following available, as applicable:
- Form 1040ME, including your filing status and number of qualifying children and dependents.
- Your name, Social Security number, date of birth, your spouse’s date of birth if married, and the physical address of your 2024 home if different from your mailing address.
- Federal Form 1040 or 1040-SR, if you file one, and information about income not included in federal total income and loss add-backs.
- If you do not file a federal return, income information from forms such as SSA-1099, RRB-1099, RRB-1099-R, W-2, and payer-issued Forms 1099, as applicable.
- Property tax payment information or rent payment information. You may be asked for proof of property tax paid, rent receipts, or canceled checks before a refund is issued.
- Your landlord’s name and telephone number if you report rent, and the amount of any heat, utilities, furniture, or similar items included in rent, if known.
- Schedule NR or Schedule NRH, if applicable.
If you answer yes to the question about a 100% permanent and total VA disability rating on line 14, enclose a copy of your VA Rating Decision Letter or VA Benefit Summary Letter.
How to file
Enclose Schedule PTFC/STFC with Form 1040ME. The supplied text does not give a mailing address or e-filing directions.
- Complete Form 1040ME according to its instructions.
- Enter your identifying information on Schedule PTFC/STFC.
- Complete lines 1a through 1e if you do not file federal Form 1040 or 1040-SR. If you do file a federal return, complete lines 2a through 2d instead. Add the applicable amounts on line 3.
- Complete lines 4 through 16 for the Property Tax Fairness Credit. Transfer line 16 to Form 1040ME, line 25d.
- For the Sales Tax Fairness Credit, use the line 17 table for your filing status, total income, and qualifying children and dependents. Transfer line 17 to Form 1040ME, line 25e, unless line 17a applies.
- Part-year residents filing Schedule NR or NRH must prorate the Sales Tax Fairness Credit on line 17a and transfer that result to Form 1040ME, line 25e.
If you are applying only for the Sales Tax Fairness Credit, skip from line 3 to line 17.
Common mistakes
- Completing both income sections. Complete line 1 or line 2, not both.
- Using dollar signs, commas, or decimals. The schedule says not to enter them.
- Reporting property tax assessed instead of paid. Use only tax actually paid during 2024. Do not include interest, special assessments, or taxes on property other than your primary residence.
- Including someone else’s property tax payments. Do not include tax paid by others, except amounts paid by the State under the Property Tax Deferral Program.
- Counting mortgage or room and board payments as rent. Neither qualifies as rent. Do not include rent paid by a government program; the instructions separately allow town Workfare payments used to pay rent.
- Including business or other occupants’ portions. Exclude property tax or rent for areas used exclusively for business, and follow the exclusions for separate dwellings or space rented to others.
- Leaving heat or utilities in the rent calculation. Subtract the known cost of heat, utilities, furniture, or similar items. If the amount is unknown, use 15% of line 5a on line 5c.
- Using the full year’s payments as a part-year resident. Include only property tax or rent paid for your Maine home during the part of the year you were a Maine resident.
Questions people ask
Can I claim these credits without filing a federal income tax return?
Yes. The instructions provide a filing process for Maine residents and part-year residents who do not file a federal return. Complete lines 1a through 1e on this schedule and enclose it with Form 1040ME.
Are these credits refundable?
Yes. The Property Tax Fairness Credit is refundable up to $1,000, or $2,000 if you are age 65 or older. Higher limits may apply for qualifying veterans with a 100% permanent and total service-connected VA disability rating. The Sales Tax Fairness Credit is refundable up to $270.
Can I include both property tax and rent?
Yes, if you owned a home on rented land or owned land with a rented home. For example, enter property tax paid on a mobile home on line 4 and lot rent paid on line 5a.
What if I do not qualify for the Property Tax Fairness Credit?
You may still apply for the Sales Tax Fairness Credit. If line 9 is not greater than line 10, the form directs you to line 17 to apply for that credit.