Personal Income Tax for Residents

If you own a residential property in Massachusetts and paid to remove or fix a lead paint issue, you may be eligible for a tax credit, provided you complied with state laws. If you’re a Massachusetts resident or part-year resident and you report income to another state, U.S. territory, or to a Canadian province, you may be entitled to a credit for the amount of income tax paid to the other jurisdiction. Once the extension is granted, the 6-month extension starts at the filing due date of the original return. You can file your return anytime during the extension period.

If an extension payment is required to reach the 80% threshold, you canpay electronically. If you need to pay $5,000 or more to qualify for an extension, you are requiredpay electronically. If you are required to file Form M-4768 electronically, register on MassTaxConnect to file your extension. In the event the Internal Revenue Service issues tax relief to taxpayers with Federal filing obligations, DOR is prepared to follow the IRS in offering similar relief for taxpayers with Massachusetts tax filing obligations. This may help to both remove any future appreciation from your taxable estate and avoid the MMT. To qualify as a tax resident under “permanent place of abode” guidelines, the individual must also spend more than 183 days of the relevant tax year in Massachusetts.

Personal Income Tax

The penalties levied by the state are determined by the taxpayer’s delinquency amount, as well as the person’s family size and income level. Depending on whether or not the person’s income falls at or below the established federal poverty guideline, this individual could face fines that range from $20 to $91 a month, or $240 to $1092 per year. Failure to pay the penalties or owed balance to the state could also result in forfeiture of the person’s state income tax refund. Like many other states, as well as the federal government, Massachusetts requires that all qualifying taxpayers file and submit their Massachusetts tax returns by April 15 of each year. Beginning in 2023, if the taxable income on your Massachusetts income tax return is over $1 million, you will pay an additional 4% tax on the income exceeding the $1 million threshold. This is in addition to the other state tax, usually 5%, on income.

If the employee wishes, as regulations allow, they may elect the exemption from withholding. MIT will also withhold Massachusetts income taxes unless the applicable law of another state or an agreement between another state and Massachusetts dictates otherwise. Unlike with the federal income tax, there are no tax brackets in Massachusetts.

State Individual Income Tax Rates and Brackets for 2023

To determine your federal tax liability of your retirement allowance in your first year of retirement, review and complete the following sample worksheet. The example illustrates the calculations for a retiree who is 59 on her retirement date of June 30 and who receives an annual retirement allowance of $30,000. Most food sold in grocery stores is exempt from sales tax entirely. Clothing purchases, including shoes, jackets and even costumes, are exempt up to $175. A product that costs more than $175 is taxable above that amount, so a $200 pair of shoes would be taxed at 6.25% on the $25 above the exemption limit.

This proof is known as the Schedule HCmassachusetts state income tax, and can be filled out with information supplied by your health insurance provider, usually the 1099HC. If your health care provider has not sent you health insurance information you can call them and request their Federal ID Number, because you have all the other information needed . Massachusetts provides a wide array of credits including an earned income tax credit, a circuit breaker credit and a solar, wind and energy tax credit.