Circuit Breaker Program

by Ruth Dockins

This program also known as “Missouri Property Tax Credit”, offers eligible individuals a rebate for property tax or rent paid.  For most senior citizens, income substantially decreases or becomes fixed upon retirement, but property tax or rent continues at the same rate or increases.  Several years ago the Missouri General Assembly enacted a law to help senior citizens with this burden. The law is administered by the Missouri Department of Revenue.

Since 1973, Missouri has provided tax relief for citizens ages 65 and over.  Prior to 1993 the program was referred to as the Senior Citizens’ Tax Credit.  It is also called the Circuit Breaker Program because it is compared to an electrical fuse that “breaks the circuit” from an overload.  Likewise the Circuit Breaker Program eases the overload when rent or property tax exceeds the percentage level of a household’s income capability. 

This program was revised in 1993 to include 100% disabled veterans and again in 1994 to include all 100% disabled individuals.  Disabled veterans or individuals may quality regardless of age.

To qualify for the credit your household income cannot exceed $27,500 or $34,000 if your filing status is “married, filing jointly” and you must pay property tax on, or rent, the homestead occupied during the year you are filing for the credit.

In addition to meeting the two qualifications above, ONE of the qualifications must be met:

1.  You or your spouse must be 65 years of age or over as of December 31 of the filing year and you or your spouse must have been Missouri residents for the entire filing year.

                                           or

2.   You or your spouse must be a veteran of any branch of the Armed Forces of the United States or this state who became 100% disabled as a result of such service.  Age doesn’t apply.

                                           or

3. You are permanently and totally disabled and cannot engage in any substantial gainful activity because of your physical or mental condition.  Age doesn’t apply.

If you meet the above listed qualifications you should apply for the tax credit or refund.  Refunds in the past have ranged from as little as a few dollars to as much as several hundred dollars.  It is certainly worth the time it takes to apply.  Beginning around the first of February until April 15, volunteers can be found in most senior centers several days each month to assist seniors with this task.  The volunteers can also be found in many libraries and other community gathering spots.  To find the nearest location please call your local senior center or you may call our office at 1-800-392-8771.

If you choose, you may obtain a copy of the form and fill it out yourself, simply go on line to www.dor.mo.gov.

Some documentation is required to verify your claim.  Documentation requirements include providing a copy of your paid property tax receipt, if you rent, a statement from the landlord verifying rent paid must be submitted.  As well as verification of household income, your address and social security card.

The normal processing time is 6 to 8 weeks to get your credit.  Failure to provide required documentation will delay processing your claim.

If you are interested in being trained to complete these forms in order to assist others with the filing we are holding a training in our office at 1219 N. Kingshighway, Cape Girardeau, on January 30th starting at 1:30 p.m. Please remember if you have questions regarding this or any other topic of interest to senior citizens you may call the SEMO Area Agency on Aging at 1-800-392-8771.