Massachusetts Rental Deduction

[slipsibm]

I am doing my mom's Mass. Taxes. She has very limited income so owes about $100 in MA Tax. When I put in the rent she pays to Turbotax, she is eligible for a $4000 Rent Deduction. Turbotax then says she is due for over $2000 MA refund, even though she only owed ~$100 in taxes before the rent deduction. Does this sound right? I can see if we had payed estimated taxes or withholding but none of that applies. Thanks!

[JotikaT2]

Massachusetts actually provides a refundable credit under the Circuit Breaker Tax Credit for seniors who rent residential property.  The maximum amount of the credit for 2023 is $2,590.  Therefore, it is possible your mom is entitled to this credit even though she doesn't have a tax liability before entering the rent information.

The credit is calculated for Massachusetts residents who are 65 or older as of December 31st and who do not have income that exceeds the applicable amounts based upon the taxpayer's filing status.  Please see Massachusetts Senior Circuit Breaker Tax Credit for more details on who is eligible for the credit and how the credit is calculated. You must also complete Schedule CB in order to claim the credit.

[slipsibm]

Thanks for the response. I went thru the CB screens and she is ineligible for that but the rental credits seems to showing up as soon as I enter her yearly rental even though she is ineligible for the Senior CB credit.