The circuit breaker application is a tax credit scheme available in 18 states alongwith Washington DC of the United States to seniors (aged 65 years and beyond), disabled/incapacitated, and veteran citizens. The State will allow you to claim a refundable credit on the basis of your real estate taxes or rents paid out for a property you rent or own.
The credit amount for a tax year sums up to a maximum of $1170 as of the tax year 2021. If you owe excess than the payable tax amount, you will be able to claim a refund for the additional credit amount without any interest by filing the circuit breaker application.
You might have to file an application for the circuit breaker with your State department to qualify for a refund.
Who is Eligible for Circuit Breaker Program?
Eligibility criteria for the Circuit Breaker application include the fulfillment of these below points.
- You should be 65 years or older as of 1st January 2022 to be eligible as a senior for the refund.
- People applying for it must either be permanent or part-year residents of that particular state of the US.
- Completing your Schedule CB is a must alongwith your state’s personal income tax returns.
- If you want a refund you must hold property in that particular state and must either be on rent or own the property.
- Your total income must not exceed the given amount.
- $62000 for a single household.
- $78000 for the household head
- $93000 for married couples filing jointly
- For a homeowner, the property tax including your sewer and water expense should exceed 10% of your state’s total income limit.
- If you stay on rent, 25% of your rental amount must exceed 10% of the state’s total annual income.
- The value of your home should not be more than $884000 as of 1st January 2021.
- Filing the Schedule CB must be done within 3 years from filing the tax returns.
What are Application Requirements?
Application requirements for the Circuit Breaker application include the following conditions.
- Schedule CB is a must for those filing the Circuit Breaker application.
- Include Schedule HC to demonstrate the individual’s health conditions.
- Add Schedule Y if you got some deductions.
- Schedule B for those who have a non-MA bank dividend, interest, or short-term capital gains.
- Add Schedule D for possessing long-term capital gain and investments.
- Include proof of your eligibility like Form SSA-1099/Veteran affairs department letter.
- Income details of all family members like W-2, 1099, or any other document.
- You will need to also tag up your social security benefit details.
How to Apply for circuit breaker application?
Once you have collected all the documents and confirmed your eligibility, start your filing by either visiting your treasurer’s office or the county’s auditor’s office. If the state offers an online form, you can use even this facility.
Prepare your filling by filling in the application form details and adding all essential copies. Sign and add the date to your form and then mail it to your county office. For online forms, you will need to click the Submit tab to complete the application process.
The primary benefit of the Circuit Breaker application is the grants offered to senior citizens and disabled individuals. These grants offer and reduce the load of taxes and prescription medications from people who are not actively earning their income.
If you wish to know more about the Circuit Breaker application process, refer to this article. The application is a lengthy process and might require a good amount of time. The application if online can be saved easily and one can return to it as and when appropriate.