![]() See MGL ch 62, § 2(a)(2)(R) for additional information. The exclusion in MGL ch 62, § 2(a)(2)(R) and IRC § 108(f)(5) are largely the same, except that the exclusion in MGL ch 62, § 2(a)(2)(R) does not expire. In addition, recently enacted MGL ch 62, § 2(a)(2)(R) excludes from Massachusetts gross income, to the extent not otherwise already excluded, income attributable to the discharge of certain student loans. Therefore, income from the discharge of student loans excluded by IRC § 108(f)(5) may also be excluded from Massachusetts gross income. Massachusetts conforms to IRC § 108(f)(5) as currently in effect. IRC § 108(f)(5) excludes from federal gross income discharges of certain student loans for tax years beginning on or after January 1, 2021, and ending on or before December 31, 2025, regardless of the reason for the discharge. Modification to the Exclusion of Student Loan Forgiveness Income The IRS has determined the 2022 monthly exclusion amounts to be $280 for employer-provided parking and $280 for combined transit pass and commuter highway vehicle transportation benefits. IRC § 132(f) excludes from an employee’s gross income (subject to a monthly maximum adjusted annually for inflation) employer-provided parking, transit pass, and commuter highway vehicle transportation benefits. Massachusetts conforms to Internal Revenue Code (IRC) § 132(f) as amended and in effect on January 1, 2022. Employer-Provided Parking, Transit Pass, and Commuter Highway Vehicle Benefits Exclusion Amounts To qualify for the credit, a taxpayer must be age 65 or older and must occupy the property as his or her principal residence. For tax year 2022, an eligible taxpayer’s total income cannot exceed $64,000 in the case of a single filer who is not a head of household filer $80,000 for a head of household filer and $96,000 for joint filers. For purposes of calculating the credit, total income and maximum credit thresholds are adjusted annually. The amount of the credit is subject to limitations based on the taxpayer’s total income and the assessed value of the real estate, which for tax year 2022 must not exceed $912,000. Taxpayers age 65 or older who own or rent residential property located in Massachusetts are allowed a credit equal to the amount by which their real estate tax payments, or 25% of their rent in the case of a renter, exceeds 10% of the taxpayer’s total income, not to exceed $1,200. Annual Update of Circuit Breaker Tax Credit ![]() The monthly penalties, which will be imposed through the individual’s personal income tax return, are set out in TIR 22-3 and are based on half of the minimum monthly insurance premium for which an individual would have qualified through the Health Connector. Individuals who are deemed able to afford health insurance but fail to obtain it are generally subject to penalties in Massachusetts for each month of noncompliance in the tax year. In 2022, individuals must be enrolled in health insurance policies that meet minimum creditable coverage standards defined in regulations adopted by the Commonwealth Health Insurance Connector Authority (Health Connector). Massachusetts requires most adults 18 and over with access to affordable health insurance to obtain it. Penalty for Failure to Obtain Health Insurance ![]() TIR 21-9 also announced an expansion of the Department’s two-dimensional (“2D”) bar code requirements for paper forms produced by tax preparation software programs effective for tax periods ending on or after December 31, 2021. New requirements for partnerships and fiduciaries are effective for tax periods ending on or after December 31, 2021, and for payments made on or after January 1, 2022. ![]() Technical Information Release TIR 21-9 announced the expansion of electronic filing and payment requirements for certain tax types. Expansion of Certain Electronic Filing and Payment Requirements The tax rate on short-term gains from the sale or exchange of capital assets and on long-term gains from the sale or exchange of collectibles (after a 50% deduction) is 12%. 2022 Personal Income Tax RatesĮffective for tax years beginning on or after January 1, 2020, the tax rate on most classes of taxable income is 5%. As a result, returns, payments made with returns, and estimated payments otherwise due on April 15, 2023, will be treated as timely if they are filed and/or paid on or before April 18, 2023. However, in Massachusetts, Monday, April 17, 2023, is Patriots' Day, a legal holiday in the Commonwealth. April 15, 2023, when returns and payments would normally be due, is a Saturday, which extends the filing due date to the next business day. Form 1 is due on or before April 18, 2023.
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