IMPORTANT INFORMATION

TAX RELIEF FOR SENIOR CITIZENS

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TAX CREDIT WORKSHEET

This is not an official tax document.

 

For Homeowners:

 

          Your property tax     (a) $______________

 

                        (plus) +

50% of water/sewer bill     (b) $______________

 

                                    =     (c) $______________

 

              Annual income     (d) $______________

(includes taxable income as well as exempt income such as social security and public pensions)

 

    (minus) - Exemptions    (e)  $______________

(includes exemptions for dependents, blindness

and age 65+ exemption)

 

  = Total Annual Income    (f)  $______________

 

               (times) x .10 =    (g)  $______________

 

To calculate possible credit (h), subtract (g) from (c):

                Line     (c)   $______________

 

               (minus) - Line    (g)   $______________

 

        Possible tax credit     (h)  $______________

 

 

 

 

For Renters:

 

            Your annual rent    (a)   $_____________

 

          (times) x .25 =    (b)  $_____________

 

      Total Annual Income    (c)   $____________

(See lines (d) and (e) above to calculate total annual income.)

 

                (times) x .10 =    (d)  $_____________

 

To calculate possible credit (e), subtract (d) from (b):

                  Line    (b)  $_____________

 

                (minus) - Line    (d)  $_____________

 

      Possible tax credit =     (e)  $_____________

 

 

Remember

The maximum credit for tax year 2006 is $870.

 

MORE TAX TIPS FOR SENIORS

 

No Tax Status

If qualified, you may not have to pay MA income taxes if your adjusted gross income is

 

Less than $8,000        Single

Less than $13,550       Head of Household

                       (plus $1,000 per dependent)

Less than $15,300       Married, Joint Return

                                    (plus $1,000 per dependent)

 

Limited Income Credit

You may qualify if your adjusted gross income is between

 

$8,000-$14,000         Single

$13,550-$23,713         Head of Household

                                                   (plus $1,750 per dependent)

$15,300-$26,775        Married, Joint Return

                                                   (plus $1,750 per dependent)

 

Exemption for Age 65+

You are eligible for a $700 exemption if you turn 65 before the close of the tax year. The same exemption is available for your spouse if he or she is 65 on Dec. 31st of the tax year.

 

Dependent Deduction

For households with elderly or disabled dependents the deduction is $3,600 for a single dependent and $7,200 for no more than two dependents.

 

Capital Gains on Sale of Residence

On a principal residence sold after December 31, 1997, a gain of up to $250,000 is not subject to tax. For joint filers, the gain excluded from tax is $500,000.

 

Non-Taxable Income

Social Security payments received, as well as

Veterans Administration compensation, are not

taxable in Massachusetts.

 

You may wish to consult with a tax

professional for guidance on these items.