March 1, 2023

Tax season is upon us!

Provided here is information regarding a tax credit for seniors (65 or older by December 31, 2022), referred to as the Senior Circuit Breaker Tax Credit, as well as a $500 Property Tax Exemption for Seniors in New Bedford.

The Massachusetts Senior Circuit Breaker Tax Credit was designed by the Legislature to help provide tax relief for seniors.

This is not an official tax document. Should you have specific tax questions, I suggest that you consult with a tax professional.

If you have questions regarding the Circuit Breaker Tax Credit, please contact the Department of Revenue at 1-800-392-6089.

As always, please do not hesitate to contact me at (617) 722-2017, (508) 997-8113 or email antonio.cabral@mahouse.gov for assistance.

What is the Senior Circuit Breaker Tax Credit?

It’s called the Circuit Breaker Tax Credit because it’s “triggered,” like an electrical circuit breaker, when property tax 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 who are homeowners may be eligible to receive a credit on their Massachusetts state income taxes if their property taxes paid, together with half of their water and sewer bills, exceed 10% of their income. If the credit is greater than the amount of taxes owed, the state will refund the difference.

The maximum credit allowed for tax year 2022 is $1,200.

Seniors who are renters may be eligible to receive a credit when 25% of their annual rent exceeds 10% of their total income, subject to the same $1,200 maximum.

IS THERE A SPECIAL APPLICATION?

If eligible, you can claim the credit by submitting a completed Schedule CB, Circuit Breaker Credit, with your 2022 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 by December 31, 2022 (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 $64,000 or less for a single filer who is not the head of household; $80,000 or less for a head of household; or $96,000 or less for joint filers.
  • Have property assessed at no more than $912,000.

WHO IS NOT ELIGIBLE?

• • Nonresidents
  • Married persons who do not file jointly
  • Those who are a dependent of another tax filer
  • Those who receive a 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 more than $912,000
  • Those who rent from a landlord who is not required to pay real estate taxes

If you have questions about filing for the Circuit Breaker Credit, please call the Massachusetts Department of Revenue at 1-800-392-6089.

To find an AARP Foundation Tax-Aide, please call 1-888-227-7669.

What is the New Bedford Property Tax Exemption for Seniors?

A Property Tax Exemption is a release or discharge from the obligation to pay all or a portion of a local property tax. Seniors may qualify for a $500 exemption. The deadline to apply for an Exemption is April 1, 2023.

You are eligible if:

• • Are 70 years old or older as of July 1, 2022
  • Owned and occupied your property in Massachusetts at least 5 years AND have resided in Massachusetts for the past 10 years continuously.
  • Your gross income for 2022 did not exceed:
    • $23,758.15 (single)
    • $27,416.49 (married)
  • You meet the Whole Estate Qualification

What is the Whole Estate Qualification?

• • A Whole Estate is everything comprising the net worth of an individual, including the value of any additional property owned, financial securities (IRA, Annuities, Stocks and Bonds), bank accounts balance as of July 1, 2022, and other assets that the individual owns or has a controlling interest in.
  • The Whole Estate excludes the value of the property you live in if the residential property has 3 units or less.
  • To qualify for the $500 Property Tax Exemption, your Whole Estate must be below these limits:
    • $51,173.53 (single)
    • $54,828.55 (married)

Please click HERE for the application. Additional required documents include a Birth Certificate or Passport and a Copy of Trust (if applicable). Please note: Documents are required by both parties if married.

The deadline to apply for an Exemption is April 1, 2023.

For additional questions, please read this document provided by the New Bedford Assessor’s Office or call the office at (508) 979-1440.