A recently enacted piece of legislation known as the “Birmingham” bill or the “Circuit Breaker” bill may benefit some of the Senior population, but not until they file their Calendar year 2001 income taxes. \u201cCircuit Breaker\u201d State Tax Credit for low and moderate income Seniors with high property taxes. <\/P>
\u00b7 First year of implementation will be for the calendar year 2001 income tax filing.
If more than 10% of a tax payers annual income goes to paying real estate taxes,
\u00b7 there may be a refundable state tax credit available *if* the following eligibility requirements are met:<\/P>
Minimum Age Maximum Income Maximum Valuation <\/P>
65 (S)$40,000 (M)$60,000 $400,000 <\/P>
The maximum allowable amount of the credit will be as follows: <\/P>
Maximum Credit Amounts <\/P>
$375 1st year of implementation
$750 Succeeding Years<\/P>
The actual allowable amount is based on the real estate tax assessed in excess of the 10% figure, not to exceed the maximum credit figures**<\/P>
** Example – a husband and wife have a combined income of $50,000. The assessed value of their domicile is $300,000. The annual real estate tax is $5,497.80.<\/P>
\u00b7 The real estate bill is $497.80 in excess of 10% of the income.
\u00b7 The amount of the tax credit, the first year of implementation will be $350.00.
\u00b7 The following year (if the figures were to remain the same) will be $497.80.<\/P>
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“Circuit Breaker Bill” will apply to the calendar year 2001 state income tax filing Read full article