Senior Tax Work Off Program 2026

Senior Tax Work Off Program: Policy Guidelines-2026

The Town of Hadley’s Senior Tax Work-off Program allows seniors of Hadley, age 60 and older, and who meet income eligibility guidelines, the opportunity to work for the Town and in return will receive a reduction in property taxes up to the amount of $1,000 each year worked, based on the total hours worked, at a rate no less than the current state minimum wage, which will be $15.00 per hour as of January 1, 2024. This program is in addition to other tax abatements and property exemptions for which senior tax payers may be eligible. Seniors must own and occupy the residence for which property taxes are paid and credit is being sought.

The Senior Tax Work-Off Program is open to residents who own and reside in their home in Hadley, pay real estate taxes to the Town of Hadley and meet the income guidelines. Participants must complete between 35 and 67 hours of service in the program, which runs from January 1, 2026 to October 31, 2026.

The Town of Hadley has 5 openings for the Senior Tax Work-off Program.

Income Guidelines:

The following income limits are required for participation in the program:

Based on the Massachusetts Median Income Level

Household Size and Combined TOTAL GROSS Annual Income

Household Size Maximum Income:

1 $45,392

2 $59,359

3 $73,326

4 $87,294

5 $101,261

6 $115,228

7 $117,846

8 $120,465

Compensation

· $15.00 per hour (Chapter 59 section 5K, General Laws of MA)

· Participants will receive an abatement for up to 67 hours of service. Any hours worked beyond the 67 cannot be accumulated for the Tax Work-off Program

· Maximum amount of abatement is $1,000 per household, per year.

· Money earned through the Tax Work-off Program is reportable income for federal taxes only. Participants will receive either a 1099 or W-2 from the Treasurer’s Office for the amount of money earned through the program.

Accounting and Tax Withholding

The following is not meant to be considered as tax advice or a legal opinion. Tax laws may change, and eligible participants are encouraged to review their tax status and responsibilities with a qualified tax specialist.

Tax Withholding

Each participant is mandated to include the abatement amount earned in his/her gross income for federal income and FICA (Federal Insurance Contribution Act) tax reporting. The amount of property tax reduction is not considered income or wages for the purpose of state income tax withholding, unemployment, or worker’s compensation.

Tax Credit Reporting

At the end of the year, a 1099 or W2 income tax form will be issued to the participant, and the tax benefit will be reported to the IRS. It is the participant’s responsibility to report the credits income on their annual tax filing. Participants are encouraged to talk with their tax advisors on the responsibility regarding state and federal reporting requirements.

Administration

Administration of the program is the responsibility of the Council on Aging in conjunction with the Assessor’s Office.

Tax Credit Year – The program runs January 1 through October 31 and tax reductions are credited on the 3rd or 4th quarter of each year, after the senior has completed one full year of work in the program. Work must be completed no later than October 31 of each year to allow enough time for the Assessor’s Office to process the tax credits.

The amount of credit will not be paid directly to the participant; it will be shown as a reduction to the property owner’s real estate taxes on the last quarterly tax statement. Eligible participants must be issued a statement of credit prior to receiving their tax bill. A 1099 or W2 will be issued by the Treasurer’s Office at the end of the year to the participant. Carry over hours will not be permitted, as hours must be recorded and reported for the calendar year in which they are earned.

Maximum Number of Hours Worked Annually: The maximum hours of a participant can work in the tax program is 67, for a total credit of $1,000 in 2026.

The senior is required to commit to completing the maximum numbers of hours allowed in the program. However, partial credit will be granted based on the total number of hours worked for the year. The total hours may be earned by participating in one or more assignments, however, credit will not exceed a total of 67 between all assignments.