Gov. Maura Healey's tax reforms may offer welcome relief for Massachusetts residents, particularly for seniors and families struggling to keep pace with inflation.



Healey Tax Cuts

Senior Circuit Breaker Tax Credit

The Senior Circuit Breaker Tax Credit provides relief to renters and homeowners aged 65 and older whose primary residence is in Massachusetts. This credit is designed to offset property taxes (or the rental equivalency) that exceed 10 percent of income, and has increased from $1,200 to $2,400.

Expanded Child and Family Tax Credit (CFTC)

Seniors who act as caregivers for a dependent child, disabled adult, or fellow senior -- or whose children provide such care for them -- may benefit from two enhancements to the CFTC. Gov. Healey's reforms increase both the number of dependents a caregiver may claim (previously capped at two) and the value of the credit (from $180 to $440 per dependent).

Rental Deduction Increase

Renters may write off up to 50 percent of the rent paid during a tax year, up to a maximum of $4,000. A portion of the monthly fees paid to a retirement community (which is attributable to rent) may be deducted up to the same $4,000-per-year limit.

Short-Term Capital Gains Tax Rate Reduction

Profits from the sale of investments, such as stocks or bonds, are considered taxable income. Assets held for one year or less are considered "short-term" investments, and are subject to a short-term capital gains tax. For such investments, the state tax rate has dropped by nearly one-third (from 12 to 8.5 percent), creating greater flexibility for older adults relying on investment income during retirement.



Navigating Inflation

These tax cuts, when coupled with strategic investing and budgeting, may provide considerable relief for retired individuals during an unfavorable economic climate.

Investing Wisely

As prices for goods and services rise, liquid assets (i.e., cash on hand and assets that can be quickly and easily converted to cash, such as stocks, bonds, or shares) decrease in value. Maintaining a diversified investment portfolio that includes income-producing assets, such as inflation-protected bonds, can help protect the purchasing value of your money. This and the newly reduced capital gains tax may make it worthwhile to consult your financial advisor about the potential advantages of a portfolio adjustment.

Strategic Budgeting

Recording monthly expenses in a budget can inform wise spending decisions. Revisit your budget, determine the area(s) most impacted by rising costs, and prioritize the essential expenses. Maintaining a home, for example, can be a costly endeavor. Exchanging an over-large house for a rental property may eliminate unnecessary expenses and allow seniors to take advantage of the increased circuit breaker credit and rental deduction.



Lock in Your Rate at New Horizons

Thanks to a unique rate-lock policy, nearly all new residents at New Horizons are guaranteed no increases to their rent and board fees for at least their first six years. These fees include all charges for lodging, gourmet meals, water, heat, air conditioning, basic cable TV, local telephone service, parking, and regular maintenance as well as a full schedule of engaging activities and events. Monthly "room and board" fees for a single person, including three home-cooked meals daily, start at $2,400 per month.

Not-for-profit New Horizons at Marlborough offers a continuum of care, including independent living, assisted living, memory care, and geri-psych programs, in a warm and lively environment. Located on 40 acres of rolling meadows and woodlands and surrounded by deeded conservation land, the MetroWest community is home to more than 400 seniors.

All faiths and denominations are welcome at New Horizons, and regular on-site Mass and communion services provide its large Catholic population with multiple opportunities each week to practice their faith as part of a community, without leaving home. On-campus Protestant and Jewish services are also offered.

In addition to the on-campus chapel, New Horizons' on-site amenities include a pharmacy/sundry shop, a hair salon, an art studio, a game room, large-screen theaters, and a heated indoor lap swimming pool.

Prospective residents and their families are encouraged to contact New Horizons at Marlborough at 508-460-5200 to arrange a time to tour the campus, meet current residents and staff, attend Mass, and sample a home-cooked meal. More information about New Horizons is available at CountryCommunities.com.