Senior Circuit Tax Breaker
WHAT IS THE CIRCUIT BREAKER?
It’s called the Circuit Breaker Tax Credit because it’s “triggered,” like an electrical circuit breaker, when property tax 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 who are homeowners may be eligible to receive a credit on their Massachusetts state income taxes if their property taxes paid, together with half of their water and sewer bills, exceed 10% of their income. If the credit is greater than the amount of taxes owed, the state will refund the difference. The maximum credit allowed for tax year 2022 is $1,200. Seniors who are renters may be eligible to receive a credit when 25% of their annual rent exceeds 10% of their total income, subject to the same $1,200maximum.
IS THERE A SPECIAL APPLICATION?
If eligible, you can claim the credit by submitting a completed Schedule CB,
Circuit Breaker Credit, with your 2022 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 by December 31, 2022 (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 $64,000 or less for a single filer who is not the head of household; $80,000 or less for a head of household; or $96,000 or less or joint filers.
• Have property assessed at no more than $912,000.
WHO IS NOT ELIGIBLE?
• Nonresidents
• Married persons who do not file jointly.
• Those who are a dependent of another tax filer.
• Those who receive a 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 more than $912,000.
• Those who rent from a landlord who is not required to pay real estate taxes.
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