Tax Relief For Seniors

The following opinion piece was provided by Rep. Brad Jones, Jr.

Families all over the Commonwealth continue to struggle as we endure the most difficult economic times since the Great Depression.  Because times are so tough, it’s imperative that state government works to provide assistance to many groups of people, including senior citizens. 

Seniors continue to have the opportunity to get some much needed relief under a state property tax program known as the “Senior Circuit Breaker Tax Credit.”  The program has the potential to help seniors stay in their homes, but also limit their tax expenses. The “Senior Circuit Breaker” is a refundable tax credit which means that if you do not have a state income tax liability, you can still receive a onetime payment from the state for up to $980.

This program allows residents who are 65 or older claim a credit of up to $980 on their income tax form for the property taxes they paid on their home in 2011.  Seniors can apply for the tax credit if they meet certain income guidelines and if the assessed value of their home is $729,000 or less.  Single filers cannot have an income of more than $52,000 a year and if filed jointly, their combined income cannot not exceed $78,000.

Eligible taxpayers who own their property may also claim a credit equal to the amount of their property tax payments.  The credit is equal to the amount by which the taxpayer's property tax payment in the current tax year, including half of their water and sewer charges but excluding any abatement or exemption, exceeds 10 percent of the taxpayer's total income, up to the $980 figure. The Department of Revenue offers this example:  Let's say a married couple has an annual income of $50,000 and a property tax and water and sewer bill of $6,000. Ten percent of their income is $5,000 and their combined tax bill is $6,000, which is $1,000 more than ten percent of their income, so they qualify for the maximum credit of $980.

Taxpayers who live in communities that do not include water and sewer debt service in their property tax assessments may claim 50% of the water and sewer charges actually paid during the tax year.

I urge all residents age 65 and older to find out if they are eligible for the senior circuit breaker tax credit.  The credit is refundable, so even if you do not have any state tax liability, you may still qualify.  The credit is also available to many renters – so not owning your home is does not mean you cannot or do not qualify. 

More information about the current eligibility guidelines is available on the state’s Department of revenue website at www.dor.state.ma.us.  Questions can also be directed to the Massachusetts Department of Revenue Customer Service Bureau at 617-887-MDOR or 800-392-6089.

If you have any ideas you’d like to share about making the Commonwealth more affordable for seniors, or you need any materials or forms relative to the Senior Circuit Breaker, please feel free to call me at the State House at 617-722-2100 or you can contact me via email at Bradley.Jones@MAHouse.gov.