The Massachusetts “Circuit Breaker”  credit is available to taxpayers age 65 or older that meet certain eligibilty requirements as described below.  Please be aware that this credit is available to them whether they are required to file a tax return or not, but they must file a tax return to receive the credit.

A Massachusetts taxpayer age 65 or older that owns or rents his or her principal residence may qualify for the circuit breaker credit if he or she meets the eligibility requirements.  For tax year 2012, the taxpayer’s “total income” cannot exceed $53,000 for a single individual who is not the head of a household, $67,000 for a head of household, and $80,000 for married couples filing a joint return

For tax year 2012, the assessed valuation, before the residential exemptions but after abatements, of the homeowner’s principal residence may not exceed $705,000.

A.  Renters  The credit is equal to the amount by which 25% of the rent actually paid by the taxpayer during the taxable year for the occupancy of the principal residence exceeds 10% of the taxpayer’s total income for the taxable year, provided that such amount does not exceed the maximum credit amount. For tax year 2012, the maximum credit amount is $1,000.

B.  Homeowners   The credit is equal to the amount by which the taxpayer’s property tax payments in the current tax year, including water and sewer use charges paid to a municipality, but excluding any abatement or exemption granted, exceeds 10% of the taxpayer’s total income, for the taxable year, provided that such amount does not exceed the maximum credit amount. For tax year 2012, the maximum credit amount is $1,000.

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