WHAT IS THE CIRCUIT BREAKER?

 

It’s called the Circuit Breaker Tax Credit because it’s “triggered,” like an electrical circuit breaker when property payments exceed 10% of a senior citizen’s annual  income.

 

Those who qualify will still be required to pay property taxes to their local communities.

 

Seniors will receive a dollar credit on their Massachusetts state income taxes for every dollar that the total of their property tax, water and sewer bills exceed 10% of their   income, up to the $870 maximum.

 

 

IS THERE A SPECIAL   

APPLICATION?

If qualified, you can claim the credit by submitting a completed Schedule CB,   Circuit Breaker Credit, with your 2006 state income tax return.

 

Eligible seniors must file a return and claim a   refund even if they do not owe taxes.

 

 

 

WHO IS ELIGIBLE?

Massachusetts residents who:

 

·          Are age 65 or older before January 1, 2007 (for joint filers, it is sufficient if one taxpayer is 65 years of age or older.)

 

·          Own or rent residential property in

     Massachusetts and occupy the

     property as primary residence.

 

·          Have an annual income of $46,000 or less for a single filer; $58,000 or less for a head of household; or $70,000 or less for joint filers.

 

·          Have property assessed at no more than $684,000.

WHO IS NOT ELIGIBLE?

·          Married persons who do not file jointly for this credit.

 

·          Those who are a dependent of another tax filer.

 

·          Those who receive federal or state rent subsidy directly; or those who live in a property-tax exempt facility.

 

·          Those whose property is assessed at a value of $684,000 or more.

 

For your convenience, the worksheet on the following page is provided to give an idea of what your tax credit might be. 

 

Go to Calculation page

Tom Sannicandro

State Representative