Question

Ma State Circuit Breaker Credit

Forum|Forum|6 years ago
February 4, 2020
2 replies
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Using TurboTax Premier for windows desktop. When I try to do the senior circuit breaker credit, it tells me my Mass AGI exceeds $90,000, which I've checked multiple times and it does not. I meet all the requirements listed (I am filing married filing jointly). Is there a known issue with the program?

DaveF1006

According to the Massachusetts state Gov, "The Massachusetts “Circuit Breaker” tax credit program is a program for adults age 65 + whose property taxes and half of the water and sewer bills are more than 10% of their annual gross income (or for renters, if their rent is greater than 25% of their income) and who meet a few other rules." Please select this Mass link for further details of the credit.

When you prepare your Massachusetts state return, Turbo Tax recognizes you are over 65 years old. As you go through the interview and navigate the screens, it will bring you to a section of your return where it addresses the Massachusetts Circuit Breaker section. It will ask you if you own or rent. If you own, it will ask for the assessed value of the property, amount of real estate property taxes unless it is reported in your federal return. it will ask what the amount of your water and sewer bills. Once all the information is entered, the program will determine what your credit will be. To claim the credit, your home has to be in Massachusetts, you have to reside in it, and you would have to pay property. Remember the total of your taxes + 1/2 your water and sewer must be more than 10% of your gross income reported to the state. If you rent, rent payment must be greater than 25% of your income to be eligible for the credit.

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D

djmcbainAuthor

Thank you for your response. There is a point in the turbo tax program that lists various Mass credits that are available if you qualify. The problem is when I select the 'start' button for the circuit breaker credit routine, I get a message stating my AGI is over $90,000, which it is not, and I get sent back to the 'start' screen. I cannot even get in to enter my data.

DaveF1006

Did you report a duplication of income somewhere? Maybe a pension that is being taxed that shouldn't be?

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G

gdef25

When filing for the Circuit breaker credit, do I deduct the residency credit deduction from my real estate tax amount, when filing out for the credit?

DaveF1006

The deduction for your real estate tax should already be factored in to the credit unless the program specifically asks you what your real estate taxes are. If you have reported your real estate taxes already in your program as an itemized expense, that should have automatically transferred into your Massachusetts State return. .

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