For those Seniors who have been told that they don’t have to file their tax because of their income could very well be missing out on the Senior Circuit Breaker Credit.

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By Anthony Speziale, Enrolled Agent

The Tax Shop, 347 Central St., Saugus

781-233-2003

Certain taxpayers age 65 or older may be eligible to claim a refundable credit on their state income taxes for the real estate tax paid the residential property they own or rent in Massachusetts that is used as their principal home.

The credit is based on the amount of rent paid for renters or the amount of real estate tax and 50% of the water bills paid for homeowners. Should it exceed roughly 10% of your total income, you may be eligible. If the credit is more than the amount of the total income tax payable for the year, 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:

1.The taxpayer or spouse, if married filing jointly, must be
65 years of age or older at the close of the 2007 tax year;
2.The taxpayer must own or rent residential property in
Massachusetts and occupy the property as his or her principal home;
3.The taxpayer’s “total income” (both taxable and non-
taxable) 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
4.For homeowners, the assessed valuation as of January
1, 2007, before residential exemptions but after
abatements, of the homeowner’s personal residence
cannot exceed $772,000.
5.There is no credit for Married Filing Separately.

Now, if you think you qualify and didn’t file for the past three years, contact a tax advisor immediately. Time is of the essence with the 2004 tax year. You have until April 15th, 2008 to file for 2004 to get your circuit breaker credit.