![]() ![]() This deduction is limited to 50% of the rent paid and cannot exceed a total deduction of $3,000. Rental Deduction – Massachusetts allows a deduction for rent paid by a taxpayer during the tax year to a landlord for a principal residence located in Massachusetts.Therefore, excess losses that are disallowed for Massachusetts purposes cannot be carried forward. Massachusetts does not adopt the federal net operating loss deduction. Excess business losses that are disallowed may be carried forward and deducted for federal purposes as net operating losses. Carryover of Disallowed Excess Business Losses – Excess business losses are disallowed as a deduction for both federal and Massachusetts tax purposes.The cost of weekly or monthly passes for:.Tolls paid through an E-ZPass MA account.Commuter Deduction – Massachusetts allows a deduction for certain commuting costs:.Learn about education related deduction. ![]() The deduction is equal to the amount by which the tuition payments, less any scholarships, grants or financial aid received, exceed 25% of the taxpayer's Massachusetts adjusted gross income. College Tuition Deduction - Massachusetts allows a deduction for tuition payments paid by taxpayers for themselves, their spouses, and their dependents who attend a qualifying two- or four-year college leading to an undergraduate or associate degree, diploma or certificate. ![]() Pensions eligible for the exclusion include those paid by the Commonwealth and its cities and towns, contributory plans of other states, and contributory plans of the federal government.ĭeductions allowed for Massachusetts purposes but not for federal purposes: However, income from certain government pensions is excluded from Massachusetts income. Pension Income is generally included in both Massachusetts and federal income.Massachusetts tax information for seniors and retirees.For federal purposes, these benefits may be included in federal gross income depending on income thresholds. Social Security benefits are not included in Massachusetts income.Income items included in federal t axable income but not Massachusetts taxable income Such distributions are excluded from Massachusetts income to the extent that they are excluded from federal income. Roth IRA Distributions in excess of contributions are excluded from federal income if certain age and holding period requirements are met.Roth IRA Contributions are not deductible for either Massachusetts or federal purposes.However, the amount of previously-taxed contributions may be different for state and federal purposes, resulting in different includable amounts. Traditional IRA Distributions are taxable for both Massachusetts and federal tax purposes if the distribution exceeds the amount of IRA contributions that were previously subject to tax. ![]() However, they may be deductible for federal tax purposes depending on the taxpayer’s income level and whether the taxpayer has an employer-sponsored retirement plan.
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