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What's New? June 2004 Q&A Not Too Late for Tax Rebate 6/1/2004 - Q: Can seniors still take advantage of the circuit breaker tax rebate? A: Yes. Thousands of senior citizens in Massachusetts may not realize that the state will pay them up to $810 to offset high property tax bills in 2003 and the credit is available even if you owed no state income taxes this year. What's more, you can go back two years and get a credit for 2002, and 2001. The total relief can add up to as much as $1,985. This tax break is called the circuit breaker, because it is triggered like an electrical circuit breaker, when property taxes (and certain water and sewer bills) exceed 10% of a senior's income. Even though the April 15th. tax filing date has passed, homeowners and renters over the age of 65 can still apply for the circuit breaker state tax credit for 2003. That credit is worth up to $810 this year. If you are age 65 or older, own or rent a home or apartment, and have annual income of $43,000 or less for one person, $54,000 or less for a head of household, or $64,000 for joint filers, you can apply for the circuit-breaker tax rebate. Your property cannot be assessed at more than $432,000. Even though this tax break is based on your property tax payment, it is the state that pays you back not your local city or town. The circuit breaker is an income tax rebate for excessive property taxes paid. If you filed a Form 1 for the year 2003 state taxes, you must file a Form CA-6, which is an Application for Abatement/Amended Return. Along with the amendment form, you submit a Schedule CB to calculate your credit. The state Department of Revenue can assist you with any questions you have about the abatement form or the Schedule CB. They can be reached toll free at 1-800-392-6089. If you did not file any state income tax forms because you did not owe any state taxes you still can take advantage of this tax break, because this is a fully refundable credit, even if you paid the state no taxes. If you did not file a Form 1 this year, to get the circuit breaker credit, just file a Form 1, plus the Schedule CB. These forms are on the DOR website, www.mass.gov/dor, or call their toll free number and they will send you the forms. Q: What about filing for past years? A: State law allows you to file back for three years tax benefits. The circuit breaker began in 2001, so you can now file for three years at once: 2001, 2002, and 2003. The tax rebate in 2001 was worth $385, in 2002 it went up to $790, and in 2003 its set at $810. If you have not claimed for any of these years, the state could owe you up to $1,985. To claim for past years, all you have to do is follow the instructions above. If you did not file any tax forms in 2002 or 2001, just file a Form 1 and your Schedule CB. If you did file, file a CA-6 amendment form for each year. You have until April 15, 2005 to claim the last three years of this tax credit. Back to What's New?
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