The Circuit Breaker Tax Credit is a tax credit that is triggered when property payments exceed 10% of a senior citizen’s annual income. Those who qualify will still be required to pay property taxes to their local communities. Seniors will receive a dollar credit on their Massachusetts state income tax for every dollar that the total of their property tax, water and sewer bills exceed 10% of their income, up to the $960 maximum in tax year 2009. If qualified, you can claim the credit by submitting a completed Schedule CB, Circuit Breaker Credit, with your 2009 state income tax return.
Eligible seniors must file a return and claim a refund even if they do not owe taxes.

Massachusetts residents who are eligible must:
Be age 65 or older before January 1, 2011 (for joint filers, it is sufficient if one taxpayer 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 $51,000 or less for a single filer; $64,000 or less for a head of household; or $77,000 or less for joint filers.

Massachusetts residents who are not eligible are:

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 $788,000 or more.
Renters who receive a subsidy.

For more information on the Circuit Breaker Credit, visit www.mass.gov/dor or call 617-887-MDOR.