Rep. Jones Encourages Seniors to Apply for Circuit Breaker Tax Credit

North Reading, MA - House Minority Leader Bradley H. Jones, Jr. (R-North Reading) is encouraging residents of the 20th Middlesex District who are age 65 and older to apply for the Senior Circuit Breaker Tax Credit when filing their state tax returns for 2015.

Created by the Legislature in 1999, the Circuit Breaker offers financial relief to seniors whose property tax payments exceed 10 percent of their annual income. Qualifying homeowners and renters can claim a credit of up to $1,070 on their state income tax form to offset the property taxes paid on their principal residence in 2015.

In tax year 2014, 82,449 Massachusetts taxpayers received $70 million in Circuit Breaker credits for an average credit of $849 per taxpayer, according to the Massachusetts Department of Revenue.

The tax credit is available to Massachusetts residents who:

· Are 65 or older before January 1, 2016 (for taxpayers filing jointly, only one tax filer has to be 65 to qualify);

· Own or rent property in Massachusetts and occupy the property as a primary residence;

· Have an annual income that does not exceed $57,000 for a single filer, $71,000 for a head of household, or $85,000 for joint filers; and

· Have property assessed at no more than $693,000 (before residential exemptions but after abatements).

For homeowners, the amount of the tax credit is determined based on the amount by which the taxpayer’s property tax payments in the current tax year – including municipal water and sewer charges but excluding any abatement or exemption – exceeds 10 percent of the taxpayer’s total income. Renters can count 25 percent of the rent payments they made during the tax year as real estate tax payments.

To claim the tax credit, taxpayers must submit a completed Schedule CB (Circuit Breaker Credit) form with their 2015 state income tax return. Eligible seniors must file a return and claim a refund even if they do not owe taxes.

To learn more about the Circuit Breaker tax credit and current eligibility guidelines, please visit the DOR’s website at www.mass.gov/dor/ or contact the Massachusetts DOR Customer Service Bureau at 617-887-6367.