What is the Circuit Breaker?

It's called the Circuit Breaker Tax Credit because it's "triggered", like an electrical circuit breaker when property payments exceed 10% of a senior citizen's annual income. Those who qualify will still be required to pay property taxes to thier local communities. Seniors will receive a dollar credit on thier Massachusetts state income taxes for every dollar that the total of thier property tax, water and sewer bills exceed 10% of thier income, up to the $930 maximum.

Is there a special application?

If qualified, you can claim the credit by submitting a completed Schedule CB, Circuit Breaker Credit, with your 2008 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 before January 1, 2009 (for joint filers, it is sufficient if one tax payer 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 $49,000 or less for a single filer; $62,000 or less for a head of household; or $74,000 or less for joint filers.
• Have property assessed at no more than $793,000.

Who is not eligible?

• Married persons who do not file jointly for this credit.
• Those who are a dependent of another tax filer.
• Those who receive 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 $793,000 or more.