Possible Tax Rebate

Question: A neighbor of mine received some type of rebate on her property taxes. She knows I am struggling to make ends meet with my monthly expenses. We are about the same age and our homes are comparable in value. How do I find out if I could qualify?

Answer: The American dream of owning a home in a nice neighborhood turns into a nightmare for many older adults when they realize they can no longer afford to live in that house due to increasing property taxes and water and sewer charges. The value of the home has probably appreciated significantly over the years while at the same time the owner’s income has decreased because of retirement. The “house rich and cash poor” dilemma has forced many older homeowners into a painful decision to sell their property.

In 2001, Massachusetts' legislators took measures to ease the financial burden for many older homeowners through the enactment of the Circuit Breaker Tax Credit. This legislation was specifically designed to assist low and moderate-income individuals.

To be eligible for the credit, a person must be 65 years of age or older and live in a home that does not have an assessed value of more than $432,000. The home must be their principal residence. The elder’s adjusted gross income cannot exceed $43,000 for one person, $54,000 for head of household, or $64,000 for joint filers.

The amount of the credit is based on the sum of property taxes and eligible amount of water/sewer bills that exceed 10% of the taxpayer’s income. The formula may vary somewhat in communities that include the water/sewer bills in the assessment fee.

Even though the April 15 tax filing date has passed, homeowners and renters can still apply for the credit worth up to $810 for 2003. Anyone who was unaware of the legislation can file a claim for 2001 and 2002. State law actually allows persons to file back for three years’ tax benefits.

The state Department of Revenue can assist interested individuals with any questions about the abatement form or required paperwork. They can be reached at 1-800-392-6089. As an alternative, you can call Mystic Valley Elder Services at 781-324-7705 and we will send you a Circuit Breaker Tax Credit worksheet. Or, you may click here to download a copy of the worksheet.