Senior "Circuit Breaker" Tax Credit

To qualify for the credit, a person must be at least 65 years of age, own or rent residential property in the state, occupy the property as his or her principal residence, and have an total income of not more than $46,000 for a single individual not head of household, $58,000 for a head of household, and $70,000 for a joint return. "Total income" includes taxable income as well as that exempt, such as Social Security, treasury bills and public pensions. Married taxpayers must file a joint return to be eligible (even if only one spouse is 65 or older).

For homeowners, the assessed valuation of the residence cannot exceed $684,000. The credit equals the amount (a limit of $870) by which the taxpayer's property taxes, together with 50% of that taxpayer's water and sewer charges, exceed 10 percent of the taxpayer's income. Make sure you bring property tax statements and water/sewer bills.

A senior who rents his/her domicile may also qualify for an income tax credit. The program entitles a senior who rent his/her home to a credit if 25 percent of that rent exceeds 10 percent of his/her income, again up to a $870 limit. A renter who rent is subsidized by the state or federal government through rental assistance programs, however, does not qualify for the credit.

If you are not required to file a state income tax return because you do not owe taxes, you may still obtain a credit. To do so, however, you must file a return, with Schedule CB, the Circuit Breaker credit form.