Be aware! Senior “Circuit Breaker” Real Estate Tax Credit for 2020!

As a senior citizen, you may be eligible to claim a refundable credit on your personal state income tax return. The “Circuit Breaker” tax credit is based on the actual real estate taxes paid on the Massachusetts residential property you own or rent and occupy as your principal residence. The maximum credit amount for tax year 2020 is $1,150. If the credit you’re owed exceeds the amount of the total tax payable for the year, you’ll be refunded the additional amount of the credit without interest.

Who is eligible for the credit?

To be eligible for the credit for the 2020 tax year, a taxpayer:

  • Must be 65 years of age or older before January 1, 2021 (for joint filers, it is sufficient if one taxpayer is 65 years of age or older),
  • Must own or rent residential property in Massachusetts and occupy the property as his or her principal residence.
  • The taxpayer’s total income can not exceed $61,000 for a single filer who is not the head of a household, $76,000 for a head of household, or $92,000 for taxpayers filing jointly.
  • No credit is allowed for a married taxpayer unless a joint return is filed.
  • The assessed valuation of the real estate cannot exceed $848,000

For more information click the below link for the Massachusetts Department of Revenue’s flyer on this tax break:

For a tutorial video click the below link:…/CircuitBreakerTaxCreditV1…

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