2023 Tax Season is Here.

Senior Circuit Breaker Tax Credit.

What is the Circuit Breaker?

It’s called the Circuit Breaker Tax Credit because it’s “triggered,” like an electrical circuit breaker, when property tax payments exceed 10% of a senior citizen’s annual income. Those who qualify will still be required to pay property taxes to their local communities.

Seniors who are homeowners may be eligible to receive a credit on their Massachusetts state income taxes if their property taxes paid, together with half of their water and sewer bills, exceed 10% of their income. If the credit is greater than the amount of taxes owed, the state will refund the difference. The maximum credit allowed for tax year 2023 is $2,590.

Seniors who are renters may be eligible to receive a credit when 25% of their annual rent exceeds 10% of their total income, subject to the same $2,590 maximum.

It’s Tax Season! See below for important information on the Senior Circuit Breaker Tax Credit

The Senior Circuit Breaker was doubled in 2023 and takes effect in the 2023 tax year. Even if you were not eligible last year, you might be eligible now!

Is there a special application?

If eligible, you can claim the credit by submitting a completed Schedule CB, Circuit Breaker Credit, with your 2023 state income tax return.

Eligible seniors must file a return and claim a refund even if they do not owe taxes.

Who is eligible?

Massachusetts Residents who:

  • Are age 65 or older by December 31, 2023 (for joint filers, it is sufficient if one taxpayer is 65 years of age or older).

  • Own or rent residential property in Massachusetts and occupy the property as their primary residence.

  • Have an annual income of $69,000 or less for a single filer who is not the head of household; $86,000 or less for a head of household; or $103,000 or less for joint filers.

  • Have property assessed at no more than $1,025,000

Who is NOT eligible?

  • Nonresidents

  • Married persons who do not file jointly.

  • Those who are a dependent of another tax filer.

  • Those who receive a federal or state rent subsidy directly, or those who live in a property-tax exempt facility.

  • Those whose property is assessed at a value of more than $1,025,000.

  • Those who rent from a landlord who is not required to pay real estate taxes.

If you have questions about filing for the Circuit Breaker Credit, please call the Massachusetts Department of Revenue at 1-800-392-6089.

To find an AARP Foundation Tax-Aide, please call 1-888-227-7669.