Example #1 - Renter 
Single Taxpayer age 67 
Income: 
Social Security Benefits= $22,000
Wages= $9,000
MA Bank Interest= $5,500
Dividends, Schedule B= $3,500
Other: 
Rent Paid= $15,200

 

2013 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

 

2013 Schedule CB, Circuit Breaker Credit
Line 1, Living quarters status during 2013:

Renter

Line 2, Homeowners only, enter assessed value of principal residence as of January 1, 2013. If over $700,000, 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 $55,000; or you are filing as " Head of household," and line 9 is greater than $69,000; or you are filing as " Married filing jointly," and line 9 is greater than $82,000 
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 2013: a. $15,200/4

$3,800

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 $55,000 threshold for a single taxpayer;
  • The credit is not allowed since 10% of total income less exemptions is greater than 25% of rent paid. 

Example #2 - Homeowner

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, Schedule D= $2,500
Other: 
Assessed value of home as of January 1, 2013= $420,000
Consolidated property tax paid and includes:= $4,500
  • $200 late interest charges
  • $500 for Senior Work Program
 
Water and Sewage Charges= $550

 

2013 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

$0

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 2013. 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 2013

$200

Line 4, Add lines 1 through 3. Enter result here and on Schedule CB, line 11

$700

 

2013 Schedule CB, Circuit Breaker Credit
Line 1, Living quarters status during 2013:Homeowner
Line 2, Homeowners only, enter assessed value of principal residence as of January 1, 2013. If over $700,000, 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 $55,000; or you are filing as " Head of household," and line 9 is greater than $69,000; or you are filing as " Married filing jointly," and line 9 is greater than $82,000 
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 2013 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 2013

$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 $700,000;
  • Total income includes nontaxable income;
  • Total income is below the $82,000 threshold for married taxpayers filing jointly;
  • The credit is allowed since the property tax paid exceeds 10% of total income less exemptions. 

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