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Real Estate Tax Credit for Persons Age 65 and Older
(known as the Circuit Breaker Credit)
Certain taxpayers age 65 or older may be eligible to claim a refundable credit on their state income taxes for the real estate taxes paid during the tax year on the residential property they own or rent in Massachusetts that is used as their principal residence. If the credit due the taxpayer exceeds the amount of the total income tax payable for the year by the taxpayer, the excess amount of the credit will be refunded to the taxpayer without interest.
Maximum Credit Allowed for Tax Year 2007:
For tax year 2007, the maximum credit allowed for both renters and homeowners is $900.
To be eligible for the credit for the 2007 tax year:
- the taxpayer or spouse, if married filing jointly, must be 65 years of age or older at the close of the 2007 tax year; the taxpayer must own or rent residential property in Massachusetts and occupy the property as his or her principal residence;
- the taxpayer's "total income" cannot exceed $48,000 for a single filer who is not the head of a household, $60,000 for a head of household, or $72,000 for taxpayers filing jointly; and
- for homeowners, the assessed valuation of the homeowner's personal residence as of January 1, 2007, before residential exemptions but after abatements, cannot exceed $772,000.
No credit is allowed if ONE of the following applies. Taxpayer:
- claims married filing separate status; or
- receives a federal or state rent subsidy; or
- rents from a landlord who is not required to pay real estate taxes; or
- is the dependent of another taxpayer.
For more information visit: Mass Department of Revenue (DOR)
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