News: Press Releases & Statements
Tax Relief for Seniors
01.12.10 | Contact: Sarah Scalese, 617-722-2100
Families all over the Commonwealth continue to struggle as we enter the second year of 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.
Right now, seniors 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 thousands of seniors not only stay in their homes, but limit their tax expenses.
This program allows residents who are 65 or older claim a credit of up to $960 on their income tax form for the property taxes they paid on their home in 2009. Seniors can apply for the tax credit if they meet certain income guidelines and if the assessed value of their home is $788,000. Single filers must not have an income of more than $51,000 a year and if filed jointly, the combined income must not exceed $77,000.
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 payments in the current tax year, including water and sewer charges but excluding any abatement or exemption, exceeds 10 percent of the taxpayer's total income. 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; their combined tax bill is $6,000, the difference is $1,000, so they qualify for the maximum credit of $960.
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 owning your home is not necessarily a requirement.
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, please feel free to call me at the State House at 617-722-2100 or you can contact me via email at Rep.BradleyJones@hou.state.ma.us.