Circuit Breaker 2007 can mean real estate tax savings
By Simone Gaunt & Laura Feakes
Do you know about the Real Estate Tax Credit for Persons Age 65 and Older (Circuit Breaker Credit)?
Owners or renters whose principal residence is in Massachusetts and who are age 65 or older as of January 1, 2008 may be eligible to claim a refundable credit against personal income taxes. The credit is based upon the actual real estate taxes or rent paid during the tax year. No credit is allowed if the taxpayer receives a government rent subsidy or rents from a landlord not required to pay real estate taxes.
For tax year 2007, the maximum credit allowed for both renters and homeowners is $900. To be eligible for the credit for 2007, 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. For homeowners, the assessed valuation of their personal residence as of January 1, 2007, before residential exemptions, but after abatements, cannot exceed $772,000.
For additional information contact your local Board of Assessors, the Massachusetts Department of Revenue (DOR) in Mass. at 1-800-392-6089, or see related article about the free AARP-sponsored tax preparation program above.
Simone Gaunt & Laura Feakes are Elder Services Information & Referral (I & R) Specialists.
