Has anyone had any luck getting the Massachusetts Senior Circuit breaker credit to work instead of it saying that AGI is too high when it definitely isn't?

[kris_k]

Turbo Tax needs to word this differently. It's not your Massachusetts AGI you would use to determine your eligibility, it is your total income. What Turbo Tax is trying to say is, use your adjusted TOTAL income for Mass, not your federal income; which to adjust for Mass you would include dividends, ALL of your social security benefit, pension, etc. that would normally not be included in your AGI.

"For purposes of the tax credit, a taxpayer’s “total income” includes taxable income as well as exempt income such as social security, treasury bills and public pensions."

This is from "Deductions, Exemptions and 2022 'Circuit Breaker' Tax Credit"

https://www.mass.gov/doc/dor-tax-tips-for-seniors-and-retirees/download

I hope this is clear enough. I'm not a teacher/educator for a reason! Please let me know if you need me to explain anything further. Good luck 🙂 

[AmyC]

Please take a look at the instructions for how to calculate your CB income. Mass adds in gifts, food stamps, disability, Social Security, sick pay, all sorts of income! 

The program has no way of knowing about food stamps and things not entered in the program. It will add your nontaxable pension, annuity, IRA and KEOGH distributions. The rest is up to the user. That is why this box for miscellaneous income exists in the circuit breaker questions.

@boballen5150 

[boballen5150]

I think I found my problem. They are only including capital gains in the Mass total income for CB purposes. So even if you have a net loss it doesnt matter as the gross capital gains are what counts. This doesnt seem correct or fair  but this is what all the forms are leading to.

this is why my Mass CB total income  is so high

[boballen5150]

from the instructions linked for calculating CB income https://www.mass.gov/info-details/massachusetts-senior-circuit-breaker-tax-credit#calculate-[product...

Excluded while calculating total income

• Losses included in U.S. Schedule D

[DawnC]

Correct.   Only certain capital gains are included in income.   

Massachusetts Adjusted Gross Income
+ All other income excluded from Massachusetts gross income
- Minus the personal income, dependent, over age 65 and blindness exemptions
= Total income for purposes of the credit

Income added back:
 

• Estate income (Schedule CB worksheet) - Earned income from an estate, e.g. the estate is in probate, or cannot be settled due to a pending lawsuit; any interest income earned from funds left in the account, or rental income earned from rental property that is part of the estate is included. Generally reported to beneficiaries on a K-1.
• Gains included in U.S. Schedule D (not including losses) - CB Worksheet, Part 3., Lines 12 -17
• Interest income from U.S. and Massachusetts government bonds, notes and bills - CB Worksheet, Part 2, Line 8

[DavidH3]

I have encountered a similar problem. In calculating "Qualified Income" on Line 9 of the Massachusetts Schedule CB, the taxpayer can deduct the personal, over 65 and blindness exemptions, but TurboTax does not provide a way to adjust for these items in calculating Qualifying Income. In my taxpayer's case, with the exemptions deducted, they meet the test to receive a Circuit Breaker Credit of $1200. Without those exemptions, the taxpayer does not qualify. I will likely need to submit it through Mass Tax Connect to get this credit.

[EJB3]

It worked for me, but MA Dor asked for tax and assessment documentation to review the credit determined by Turbotax.  They determined that the credit was not allowed and determined I would be responsible for updated interest and penalty charges.  The issue they said is that the credit applies to taxes paid on up to 1 acre of land.  If you have more land than that the property tax must be adjusted.  Turbotax did not have set of questions that would support assessing this requirement.

[jgr2books]

I am having the same problem, same dollar amount.  I cannot access the form - $96,000.  Nope.