Contents
1. Filing Due Dates
2. 2022 Personal Income Tax Rates
Filing Due Dates
Form 1 is due on or before April 18, 2023. April 15, 2023, when returns and payments would typically be due, is a Saturday, which extends the form due date to the coming business day. still, in Massachusetts, Monday, April 17, 2023, is Loyalists’ Day, a legal vacation in the Commonwealth. As a result, returns, payments made with returns, and estimated payments else due on April 15, 2023, will be treated as timely if they’re filed and/ or paid on or before April 18, 2023.
2022 Personal Income Tax Rates
Effective for duty times beginning on or after January 1, 2020, the duty rate on the utmost classes of taxable income is 5. The duty rate on short-term earnings from the trade or exchange of capital means and long-term earnings from the trade or exchange of collectibles (after a 50 deduction) is 12.
Expansion of Certain Electronic Forms and Payment Conditions
Technical Information Release TIR 21- 9 blazoned the expansion of electronic forms and payment conditions for certain duty types. New conditions for hookups and fiduciaries are effective for duty ages ending on or after December 31, 2021, and for payments made on or after January 1, 2022. TIR 21- 9 also blazoned an expansion of the Department’s two- dimensional (“2D”) bar law conditions for paper forms produced by duty medication software programs effective for duty ages ending on or after December 31, 2021.
Penalty for Failure to Obtain Health Insurance
Massachusetts requires most grown-ups 18 and over with access to affordable health insurance to gain it. In 2022, individuals must be enrolled in health insurance programs that meet minimal creditable content norms defined in regulations espoused by the Commonwealth Health Insurance Connector Authority (Health Connector). Individuals who are supposed suitable to go health insurance but fail to gain it are generally subject to penalties in Massachusetts for each month of resistance in duty time. The yearly penalties, which will be assessed through the existent’s particular income duty return, are set out in TIR 22- 3 and are grounded on half of the minimal yearly insurance decoration for which an existent would have qualified through the Health Connector.
Annual Update of Circuit Breaker Tax Credit
Taxpayers age 65 or aged who enjoy or rent domestic property located in Massachusetts are allowed a credit equal to the amount by which their real estate duty 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. The amount of the credit is subject to limitations grounded on the taxpayer’s total income and the assessed value of the real estate, which for duty time 2022 mustn’t exceed $9,12,000. For purposes of calculating the credit, total income and maximum credit thresholds are acclimated annually. For duty time 2022, an eligible taxpayer’s total income cannot exceed $64,000 in the case of a single filer who isn’t a head of a menage filer; $80,000 for a head of a menage filer; and $96,000 for common filers. To qualify for the credit, a taxpayer must be age 65 or aged and must enthrall the property as his or her top hearthstone.
Employer- handed Parking, Transit Pass, and Commuter Highway Vehicle Benefits Exclusion Amounts
Massachusetts conforms to Internal Revenue Code (IRC) § 132(f) as amended and in effect on January 1, 2022. IRC§ 132(f) excludes from a hand’s gross income (subject to a yearly outside acclimated annually for affectation) employer-handed parking, conveyance pass, and commuter trace vehicle transportation benefits. The IRS has determined the 2022 yearly rejection amounts to be$ 280 for employer-handed parking and$ 280 for combined conveyance pass and commuter trace vehicle transportation benefits.
Revision to the Exclusion of Student Loan Forgiveness Income
IRC§ 108 (f)(5) excludes from civil gross income discharges of certain pupil loans for duty times beginning on or after January 1, 2021, and ending on or before December 31, 2025, anyhow of the reason for the discharge. Massachusetts conforms to IRC§ 108(f)(5) as presently in effect. thus, income from the discharge of pupil loans barred by IRC§ 108(f)(5) may also be barred from Massachusetts gross income. In addition, lately legislated MGL ch 62, § 2(a)(2) (R) excludes from Massachusetts gross income to the extent not else formerly barred, income attributable to the discharge of certain pupil loans. The rejection in MGL ch 62, § 2(a)(2) (R) and IRC§ 108(f)(5) are largely the same, except that the rejection in MGL ch 62, § 2(a)(2) (R) doesn’t expire. See MGL ch 62, § 2(a)(2) (R) for fresh information.
