Blog

If you earn income that isn’t subject to withholding taxes, you’re typically required to make estimated tax payments to the IRS. Married filing separate taxpayers may only claim a maximum rental deduction of $1,500 each, unless a statement from the other spouse is provided, allowing 1 spouse to take more than the $1,500 deduction. Filing status also determines whether you’re eligible for certain deductions, exemptions, credits, etc.

There are interest and penalty charges for not filing sales/use tax returns on or before the due date. You must file a return for all periods, even when no tax is due – just enter 0 in the appropriate places. All returns with zero tax due must be filed electronically, regardless of the amount of the business’ total tax liability. Telecommunications services include telephone and other transmissions of information (such as beeper services, cellular telephone services, and telegram services). Cable television and Internet access are exempt from the sales tax. Generally, the tax on the sale or use of telecommunications services is a tax on transmitting messages or information by various electronic means, but not on the sale or use of information itself.

What is Massachusetts State Income Tax?

To report your Massachusetts income (and to be eligible for a refund from the Massachusetts Department of Revenue) you must file a non-resident income tax return in Massachusetts. The Federal income tax also has a standard deduction, personal exemptions, https://www.bookstime.com/ and dependant deductions, though they are different amounts than Massachusetts’ and may have different rules. To e-file your Massachusetts and Federal income tax returns, you need a piece of tax software that is certified for eFile by the IRS.

• View more detailed information on filing status to see what this means for you.
• This credit isn’t refundable, but if the credit is more than you owe, you can carry the excess forward for up to three years.
• We believe everyone should be able to make financial decisions with confidence.
• Income tax deductions are expenses that can be deducted from your gross pre-tax income.
• Link your Wise account to PayPal to receive and withdraw funds in different currencies to save on fees and set up direct debits for all your recurring payment needs.

Certain types of income in the Bay State, however, are subject to a different tax rate. Unlike with the federal income tax, there are no tax brackets in Massachusetts. State residents who would like to contribute more to the state’s coffers also have the option to pay a higher income tax rate. To determine if you should itemize your deductions, add up your calendar-year deductible expenses, including your state income tax expense, to see if the total is greater than the standard deduction amount for your filing status. So, if you pay more than $12,400 in state income taxes and other itemized deductions, then consider itemizing your taxes.

More of your 2024 tax season questions answered

Enter your filing status on either Form 1 or 1-NR/PY, Line 1, and fill in the appropriate oval. Some taxpayers are required to file amended returns and applications for abatement electronically. Trustee and business tax taxpayers may file returns and make payments massachusetts income tax rate electronically through MassTaxConnect. Massachusetts sales tax rates vary depending on which county and city you’re in, which can make finding the right sales tax rate a headache. That’s why we came up with this handy Massachusetts sales tax calculator.