| Example #1 - Renter | |
| Single Taxpayer age 67 | |
| Income: | |
| Social Security Benefits | = $22,000 |
| Wages | = $9,000 |
| MA Bank Interest | = $5,500 |
| Dividends | = $3,500 |
| Other: | |
| Rent Paid | = $8,400 |
| 2012 Schedule CB Worksheets Schedule CB, Line 3 -- Massachusetts Income Worksheet | |
| Part 1: | |
| Line 1, Enter your total 5.25% income from Form 1, Line 10 | $14,400 |
| Line 2, Enter the total of Schedule Y, lines 1 through 10 | $0 |
| Line 3, Subtract line 2 from line 1. Not less than "0" | $14,400 |
| Line 4, Enter total Massachusetts bank interest or the interest exemption amount, whichever is smaller, from Form 1, line 5a or line 5b | $100 |
| Line 5, Enter any income from partnership, trust of S corporation not reported on Form 1 or Form 1-NR/PY | $0 |
| Line 6, Add lines 3 through 5 | $14,500 |
| Part 2: | |
| Line 7, Enter the amount from Schedule B, line 9 . If there is no entry in Schedule B, line 9, enter the amount from Form 1, line 20 | $3,500 |
| Line 8, Enter the amount from Schedule B, line 6 | $0 |
| Line 9, Add lines 7 and 8 | $3,500 |
| Line 10, Enter the amount from Schedule B, line 15 | $0 |
| Line 11, Add lines 9 and 10 | $3,500 |
| Part 4: | |
| Line 19, Part-year residents, enter any income while a nonresident not included in lines 1 through 18 above. Not less than "0" | $0 |
| Line 20, Add lines 6, 11, 18 and 19. Enter the result here and on Schedule CB, line 3 | $18,000 |
| 2012 Schedule CB, Circuit Breaker Credit | |
| Line 1, Living quarters status during 2012: | Renter |
| Line 2, Homeowners only, enter assessed value of principal residence as of January 1, 2012. If over $705,000, you do not qualify for this credit. See instructions | |
| INCOME CALCULATION | |
| Line 3, Massachusetts adjusted gross income (from line 20 or Schedule CB, line 3 worksheet on reverse) | $18,000 |
| Line 4, Total Social Security benefits (see instructions) | $22,000 |
| Line 5, Pensions/annuities/IRA/Keogh distributions not taxed on your Massachusetts tax return | |
| Line 6, Miscellaneous income, including cash public assistance | |
| Line 7, Massachusetts total income. Add lines 3 through 6 | $40,000 |
| Line 8, Exemptions from income (from Form 1, lines 2b through 2d) | $700 |
| Line 9, Qualifying income. Subtract line 8 from line 7 | $39,300 |
| You do not qualify for the Circuit Breaker Credit if you are filing as " Single," and line 9 is greater than $53,000; or you are filing as " Head of household," and line 9 is greater than $67,000; or you are filing as " Married filing jointly," and line 9 is greater than $80,000 | |
| CREDIT CALCULATION ( If you filled in "Homeowner" in line 1, complete lines 10-17; if "Renter," skip to line 18) | |
| Line 18, Enter total amount of rent paid for principal residence in 2012: a. $ 8,400/4 | $2,100 |
| Line 19, Income threshold. Multiply line 9 by 10% (.10) | $3,930 |
| Line 20, Subtract line 19 from line 18. If line 19 is equal to or greater than line 18 you do not qualify for this credit | $0 |
| Line 21, Enter the lesser of line 20 or $1,000 here and on Form 1, line 41 | $0 |
Note:
- Total income includes nontaxable income;
- Total income is below the $52,000 threshold for a single taxpayer;
- The credit is not allowed since 10% of total income less exemptions is greater than 25% of rent paid.
Married filing joint Taxpayers living in Medford
Husband age 68 and wife age 60
1 qualified dependent
| Income: | |
| Taxable Pension | = $26,000 |
| Previously taxed distribution from IRA | = $8,000 |
| Long term capital gains | = $2,500 |
| Other: | |
| Assessed value of home as of January 1, 2012 | = $420,000 |
| Consolidated property tax paid and includes: | = $4,500 |
| |
| Water and Sewage Charges | = $550 |
| 2012 Schedule CB Worksheets Schedule CB, Line 3 -- Massachusetts Income Worksheet | |
| Part 1: | |
| Line 1, Enter your total 5.25% income from Form 1, Line 10 | $26,000 |
| Line 2, Enter the total of Schedule Y, lines 1 through 10 | $0 |
| Line 3, Subtract line 2 from line 1. Not less than "0" | $26,000 |
| Line 5, Enter any income from partnership, trust or S corporation not reported on Form 1 or Form 1-NR/PY | $100 |
| Line 6, Add lines 3 through 5 | $26,000 |
| Part 3: | |
| Line 12, Enter any gains (not including any losses) included in U.S. Schedule D, line 8, column f | $2,500 |
| Line 18, Add lines 12 through 17 | $2,500 |
| Part 4: | |
| Line 19, Part-year residents, enter any income while a nonresident not included in lines 1 through 18 above. Not less than "0" | $0 |
| Line 20, Add lines 6, 11, 17 and 18. Enter the result here and on Schedule CB, line 3 | $28,500 |
| Schedule CB, line 11 - Adjustments to Real Estate Taxes Paid Worksheet | |
| Line 1, Enter the amount of any real estate tax abatement, including senior work program, or exemption received in 2012. Do not include amounts if they were already reflected on your tax bill and you did not pay them | $500 |
| Line 2, Enter any interest amount paid due to late real estate tax payments in 2012 | $200 |
| Line 4, Add lines 1 through 3. Enter result here and on Schedule CB, line 11 | $700 |
| 2012 Schedule CB, Circuit Breaker Credit | |
| Line 1, Living quarters status during 2012: | Homeowner |
| Line 2, Homeowners only, enter assessed value of principal residence as of January 1, 2012. If over $705,000, you do not qualify for this credit. See Instructions. | $420,000 |
| INCOME CALCULATION | |
| Line 3, Massachusetts adjusted gross income (from line 20 or Schedule CB, line 3 worksheet on reverse) | $28,500 |
| Line 4, Total Social Security benefits (see instructions) | |
| Line 5, Pensions/annuities/IRA/Keogh distributions not taxed on your Massachusetts tax return | $8,000 |
| Line 6, Miscellaneous income, including cash public assistance | |
| Line 7, Massachusetts total income. Add lines 3 through 6 | $36,500 |
| Line 8, Exemptions from Income (from Form 1, lines 2b through 2d) | $1,700 |
| Line 9, Qualifying Income. Subtract line 8 from line 7 | $34,800 |
| You do not qualify for the Circuit Breaker Credit if you are filing as " Single," and line 9 is greater than $53,000; or you are filing as " Head of household," and line 9 is greater than $67,000; or you are filing as " Married filing jointly," and line 9 is greater than $80,000 | |
| CREDIT CALCULATION ( If you filled in "Homeowner" in line 1, complete lines 10-17; if "Renter," skip to line 18) | |
| Line 10, Real estate taxes paid in calendar year 2012 for your principal residence. See instructions | $4,500 |
| Line 11, Adjustments to real estate taxes (from line 4 of Schedule CB, line 11 worksheet on reverse) | $700 |
| Line 12, Subtract line 11 from 10 | $3,800 |
| Line 13, Enter 50% (.50) of water and sewer use charges paid in 2012 | $275 |
| Line 14, Add lines 12 and 13 | $4,075 |
| Line 15, Income threshold. Multiply line 9 by 10% (.10) | $3,480 |
| Line 16, Subtract line 15 from line 14. If line 15 is equal to or greater than line 14, you do not qualify for this credit | $595 |
| Line 17, Enter the lesser of line 16 or $1,000 here and on Form 1, line 41 | $595 |
Note:
- Credit is allowed if one spouse is 65 or older;
- Assessed value of personal residence is under $705,000;
- Total income includes nontaxable income;
- Total income is below the $80,000 threshold for married taxpayers filing jointly;
- The credit is allowed since the property tax paid exceeds 10% of total income less exemptions.