Massachusetts has made the following changes to the tax laws for the 2019 tax year:
- Effective for tax years beginning on or after January 1, 2019, the tax rate on most classes of taxable income has been changed to 5.05%.
- Massachusetts has done an annual update on the income thresholds for the Senior Circuit Breaker Tax Credit. Your total income cannot exceed $60,000 for single filers ($58,000 in 2018), $75,000 for a head of household filer ($73,000 for 2018) and $,000 for joint filers ($90,000 for 2018).
- The monthly exclusion amounts have changed for Employer-Provided Parking to $265 and for Transit Pass, and Commuter Highway Vehicle Benefits to $140 for the 2019 tax year.
- Even though the healthcare penalty has been eliminated on the federal return, you are still required to maintain minimal essential health coverage while you are a resident of Massachusetts.
Credits and Deductions:
- Beginning tax year 2019, the Massachusetts EITC may be up to 30% of the computed federal credit. If you are a non-resident for part of the taxable year, the credit will be limited to 30% of the federal credit and then multiplied by a fraction (based off of the number of days you resided in/out MA).
- The total cumulative amount of dairy farm credits authorized for personal income tax and corporate excise purposes was increased from $4,000,000 annually to $6,000,000 annually.
- The statute no longer requires the abandoned buildings be located in “Economic Opportunity Areas” designated by the Economic Assistance Coordinating Council (“EACC”) to be eligible for the abandoned building deduction. Instead, the EACC need only “certify” the abandoned building project.
- Effective October 1, 2019, employers are required to withhold Paid Family and Medical Leave (PFML) contributions from employees and certain self-employed individuals based on their earnings.
- The Military Spouse Relief Act has been amended to permit the spouse to elect on a year to year basis to use the servicemember's state of residence for tax purposes.
For more details on these changes, please click here.