My husband says Massachusetts has some kind credit for seniors who pay property taxes. I can't find any information on it. Is he right or, as usual, wrong? (Posted by SusanG on The Forum.)
Editor's Response:
Ouch. I am sure that your husband is frequently right, as he is in this case. Perhaps you have not been able to find information about this credit because the Massachusetts legislature decided no name it "The Circuit Breaker Tax Credit." I don't know why. In any case, if you are a Massachusetts resident who is 65 or over and you paid property tax or rent during the tax year, you may qualify. Here's how:
1. If you own a home assessed at $793,000 or less, and if your property taxes (plus 50 percent of your water and sewer bill) exceed ten percent of your income, then your credit will equal the amount of that excess, up to a $930 credit. (Example: If your total income is $30,000 and your property tax bill plus half or your water/sewer bill equals $4,000, then you would be entitled to the entire $930 credit, because your property tax and water liability exceeds ten percent of your income ($3,000) by $1,000).
2. If you rent, you can claim the credit if your water, sewer, and 25% of your rent combined totaled more than 10% of your income for the year.. However, renters in subsidized apartments are not eligible.
Also note that there are income restrictions for this credit. To qualify you must not make more than $49,000 if you are an individual, $62,000 for heads of households, and $74,000 for couples filing jointly. And, if you are married, to qualify you must file jointly. For more information, go to the Massachusetts Department of Revenue's web site.
For more information or to post a question, visit our Elder Law Discussion Forum.
UPDATE:
Here are the latest numbers for qualification for the tax credit, taken from the MA Department of Revenue Web Site:
•you own or rent residential property in Massachusetts and occupy the property as your principal residence;
•your real estate's assessed valuation does not exceed $764,000;
•you are not the dependent of another taxpayer;
•your filing status cannot be "married filing separate;"
•you do not receive a federal or state rent subsidy;
•your total income (including such items as social security, pensions, tax-exempt interest & dividends, IRAs, certain capital gains/losses and certain other types of income identified as income cannot exceed $51,000 if you are a single filer; $64,000 if you file as head of household; or $77,000 if filing jointly.