See if Your Parents Quality for this Tax Credit!

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Massachusetts’s seniors can claim the “SENIOR CIRCUIT BREAKER TAX CREDIT”, if the amount of their property taxes and 50% of their water and sewer bill exceeds their total income by 10%. Renters can claim it if 25% of their annual rental payment exceeds 10% of their total income providing that they are not receiving a federal or state rent subsidy.  The maximum credit you can receive is $900.00 for tax year 2007. 

Eligibility
The senior must be 65 or older and if married, it is sufficient for only one person to be 65.  The individual or couple must own or rent residential property in Massachusetts and occupy it as their principal residence.  Total income cannot exceed $48,000 for singles and $72,000 for couples. Assessed value of the home cannot exceed $772,000.

How to Claim
You must file a state tax return with a schedule CB even if you normally don’t file taxes.  You would normally file a state return if your income, excluding social security, were more than $8000.  For the purpose of the CB tax credit, Social Security Income is included in your total income.

Documentation Needed
You will need any receipts you would need to file a tax typical tax return such as your SSA 1099, Forms 1099D, R, I etc.  You will also need your real estate tax bill and water and sewer bill.

The amount that you receive is determined by how much your taxes or rent and water/sewer bill exceed your total income by 10%. 

Providing that my clients have all the proper documentation, I run the numbers through my tax software to see if they are eligible for the credit.  I will only charge them a fee if they are eligible to get a check back from the Department of Revenue.

This is one of the few tax credits for a senior that is not asset based!

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