Sr Circuit Breaker Pamphlet 2013
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Circuit Breaker Tax Relief for Massachusetts Senior Citizens Brought to you by Representative Tom Sannicandro February 2013 TAX CREDIT WORKSHEET is is not an official tax document For Homeowners Your property tax (a) $ ________________ (plus) + 50% of water/sewer bill (b) $________________ = (c) $________________ Annual income (d) $________________ (includes taxable income as well as exempt income such as social security and public pensions) (minus) - Exemptions (e) $________________ (includes exemptions for dependents, blindness, and age 65+ exemption) = Total Annual Income (f) $________________ (times) x .10 (g) $________________ To calculate possible credit (h), subtract (g) from (c): Line (c) $________________ (minus) - Line (g) $________________ Possible tax credit (h) $________________ For Renters Your annual rent (a) $________________ (times) x .25 = (b) $________________ Total Annual Income (c) $________________ (See lines (d) and (e) above to calculate total annual income.) (times) x .10 = (d) $________________ To calculate possible credit (e), subtract (d) from (b): Line (b) $________________ (minus) - Line (d) $________________ Possible tax credit = (e) $________________ Remember e maximum credit for tax year 2012 is $1,000 State Representative Tom Sannicandro 7th Middlesex District State House Boston, MA 02133 IMPORTANT INFORMATION TAX RELIEF FOR SENIOR CITIZENS Este documento é importante. Telefone para uma explicação
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Sr Circuit Breaker Pamphlet 2013
Transcript of Sr Circuit Breaker Pamphlet 2013
Circuit BreakerTax Relief
forMassachusettsSenior Citizens
Brought to you byRepresentative
Tom Sannicandro
February 2013
TAX CREDIT WORKSHEETThis is not an official tax document
For HomeownersYour property tax (a) $ ________________
(plus) + 50% of water/sewer bill (b) $________________
= (c) $________________Annual income (d) $________________
(includes taxable income as well as exempt income such as social security and public pensions)
(minus) - Exemptions (e) $________________(includes exemptions for dependents, blindness,
and age 65+ exemption)= Total Annual Income (f) $________________
(times) x .10 (g) $________________
To calculate possible credit (h), subtract (g) from (c):
Line (c) $________________(minus) - Line (g) $________________
Possible tax credit (h) $________________
For RentersYour annual rent (a) $________________
(times) x .25 = (b) $________________Total Annual Income (c) $________________
(See lines (d) and (e) above to calculate total annual income.)
(times) x .10 = (d) $________________
To calculate possible credit (e), subtract (d) from (b):Line (b) $________________
(minus) - Line (d) $________________Possible tax credit = (e) $________________
RememberThe maximum credit for tax year 2012 is $1,000
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Dear Friend,
As the State Representative for Ashland and Framingham, I wanted to take this opportu-nity to introduce you to a tax credit program designed for
Massachusetts seniors age 65 and older called “The Circuit Breaker.”
The Circuit Breaker is a property tax credit designed by the Legislature with the hope of alleviating some of the burdens that the property tax can create.
In this brochure you will find information to help you determine your eligibility. However, this bro-chure is not an official tax document, and I encour-age you to consult with a tax professional with your specific tax questions.
There are other tax benefits that seniors may be eli-gible for as well. Please contact my office if you are interested in learning more information.
As an additional resource, I encourage you to visit www.massresources.org, and tomworksforus.com/seniortaxcredit.
Should you have any general questions on this or any other matter, please feel free to contact me.
Sincerely,
You can reach me in my Office:Boston, MA 02133
WHAT IS THE CIRCUIT BREAKER?
It’s called the Circuit Breaker Tax Credit because it’s “triggered,” like an electrical circuit breaker 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 communi-ties.
Seniors will receive a dollar credit on their Massachusetts state income taxes for every dollar that the total of their property tax, water and sewer bills exceed 10% of their income, up to the $1,000 maximum.
IS THERE A SPECIALAPPLICATION?
If qualified, you can claim the credit by sub-mitting a completed Schedule CB, Circuit Breaker Credit, with your 2012 state income tax return.
Eligible seniors must file a return and claim a refund even if they do not owe taxes.
WHO IS ELIGIBLE?
Massachusetts residents who:
• Are age 65 or older before January 1, 2013 (for joint filers, it is sufficient if one taxpayer is 65 years of age or older).
• Own or rent residential property in Massachu-setts and occupy the property as primary resi-dence.
• Have an annual income of $53,000 or less for a single filer; $67,000 or less for a head of household; or $80,000 or less for joint filers.
• Have property assessed at no more than $705,000.
WHO IS NOT ELIGIBLE?
• 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 subsi-dy directly; or those who live in a property-tax exempt facility.
• Those whose property is assessed at a value of $705,000 or more.
For your convenience, the worksheet on the fol-lowing page is provided to give an idea of what your tax credit might be.
