What’s Circuit Breaker Credit? And how to help a senior

Massachusetts understands that real estate tax can become a burden that drives seniors from their homes. To help prevent this, legislation was passed (first year was 2000) to provide a credit to seniors. The credit is available to renters as well.  Seniors who do not need to file Massachusetts income tax should still consider filing if they can receive this credit.

There are a few restrictions including that you need to be 65 or older (as of December 31).  Income limits (including social security) are listed below:

            Single                                                $55,000

            Married filing jointly                        $82,000

            Head of Household                        $69,000

Homeowners add up the real estate tax and half the water and sewer bills.  Renters add up 25% (or ¼) of their rent.  If this amount is greater than 10% of their income, they can receive a credit or refund for the difference up to $1030.

Many seniors do not need to file tax returns. If you have a friend or family member that may fall into this category, talk to them about this opportunity.  They can get help from a tax professional or from mass.gov/dor/seniors.

If you have a question or topic that you would like me to cover, please email me at info@kozlog.com.

As with all tax advice, each individual situation is different and there are exceptions.  Tax information provided here is not intended to be used to avoid any federal or state penalties that may be imposed on the reader.

Beth Logan is an Enrolled Agent for Kozlog Tax Advisers in Chelmsford.  She can be reached at info@kozlog.com.