Massachusetts Schedule CB ("Circuit Breaker") calculating incorrectly

Forum|Forum|5 years ago
March 20, 2021
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Massachusetts Schedule CB ("Circuit Breaker") is a credit for a portion of real estate taxes paid by seniors. TT is saying "You don't qualify for this credit because your Massachusetts adjusted gross income exceeds the $92,000 allowed to claim this credit." When I did the paper schedule by hand, I qualify for the full credit. My AGI is well below the limit. Actually for this credit, Massachusetts adds certain income back in, to come up with a modified AGI. This year I rolled over my 401K to a Traditional IRA. I'm thinking maybe TT has incorrectly added this back in to that modified AGI, thus declaring that I don't qualify. Both my Federal return and my state return correctly show that rollover as non-taxable. Any ideas how to get TT to calculate the credit correctly? Thanks.

ErnieS0

Level 15

The Massachusetts Schedule CB ("Circuit Breaker") would include an add back of a 401(k) rollover.

The instructions for Line 5, Pension, Annuities, IRA/Keogh Distributions Not Taxed on Your Massachusetts Tax Return on page 36 of the Form 1 instructions says:

"Enter in line 5 the amount of pension, annuities, IRA/Keogh distributions not taxed on your Massachusetts Form 1. See Form 1, line 4 instructions, Pension and Annuities, for a list of exempt items that must be included in Schedule CB, line 5 as part of total income for the purposes of calculating the Circuit Breaker Credit."

The list of exempt income on line 4 includes rollovers which are listed on page 10 in Lump-sum distributions.

See Form 1 2020 Massachusetts Resident Income Tax

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