Taxation & Estate Planning

The Boston Globe has a recent article about the "circuit breaker" tax credit for seniors. The article points out that many people over 65 are not taking advantage of tax credit, which can be up to $930. 

Homeowners qualify for 2008 if their home was assessed at up to $793,000 - nearly double the 2008 state average of $403,687 - and if their property taxes, plus 50 percent of water and sewer bills, exceeded 10 percent of their income. The credit equals that excess amount, up to $930.

Renters can get the refund if 25 percent of their annual rent - estimated to be the amount covering a landlord's property taxes - exceeds 10 percent of annual income. Renters in subsidized apartments are ineligible.

Residents 65 and older may apply for 2008 if they earned up to $49,000 individually (the limit is $62,000 for heads of households, and $74,000 for couples filing jointly), meaning about 70 percent of the state's 800,000-plus seniors would at least meet the income criteria, Henze Russell said.

Check with your local Council on Aging for more information or help filing for the credit.