Credit of up to $2,590 is now available when filing 2023 state income taxes
BOSTON – House Minority Leader Bradley H. Jones, Jr. (R-North Reading) is encouraging Massachusetts residents who are 65 or older to explore whether they qualify for the Senior Circuit Breaker Tax Credit when filing their 2023 state tax returns.
Created by the Legislature in 1999, the Circuit Breaker offers financial relief to seniors by providing a refundable tax credit to help offset rent and property taxes paid on a principal residence in Massachusetts. Although the tax credit was previously capped at $1,200 for 2022 tax filing purposes, recent changes approved by the House and Senate and signed into law by Governor Maura Healey in October have essentially doubled the maximum tax credit to $2,590 for the 2023 tax year.
“The Circuit Breaker is an important tax relief program designed to assist older residents who are struggling with high housing costs,” said Representative Jones. “The recent changes made to the program will directly benefit nearly 100,000 eligible seniors when they file their state taxes this year.”
Jones noted the tax credit is available to Massachusetts residents who are 65 or older by December 31, 2023, and who own or rent residential property in Massachusetts which they occupy as their primary residence. For married couples filing jointly, only one person needs to be 65 or older by December 31, 2023, to qualify. The tax credit applies to residential properties with an assessed valuation (before residential exemptions but after abatements) of $1,025,000 or less as of January 1, 2023.
Applicants must also meet certain income eligibility requirements to qualify for the tax credit. Total annual income is currently capped at $69,000 for single individuals who are not the head of a household, $86,000 for heads of households, and $103,000 for married taxpayers filing jointly.
For homeowners to qualify, their Massachusetts property tax payments, together with half of their water and sewer expenses, must exceed 10% of their total Massachusetts income for the tax year. For renters, 25% of their annual Massachusetts rent must exceed 10% of their total Massachusetts income for the tax year. Seniors living in public or subsidized housing are not eligible for the Circuit Breaker.
To claim the tax credit, applicants must complete a Schedule CB (Circuit Breaker Credit) tax form and file it along with the standard Massachusetts Form 1 or Form 1-NR/PY income tax form. Jones noted that applicants must file a Massachusetts state tax return to receive the tax credit, even if they do not owe taxes. Copies of the required tax forms are available through Representative Jones’ office and can be obtained by calling 617-722-2100 or e-mailing Bradley.Jones@mahouse.gov.
Additional details on the Circuit Breaker are available at https://www.mass.gov/info-details/massachusetts-senior-circuit-breaker-tax-credit. For more information, seniors can also contact the Department of Revenue’s Customer Service Bureau at 617-887-6367 (toll-free at 1-800-392-6089) between 9 a.m. and 4 p.m., Monday through Friday.
