Massachusetts Underpayment Penalty

Underpayment of Estimated Tax: You will generally be subject to this addition to tax if you did not have withholding and/or estimated payments equal to 80% of the total tax liability required to be paid and your 2021 tax due after credits and withholding is greater than $400. The 80% requirement is reduced to 66.67% for individuals who receive two-thirds of their income from fishing or farming. [...]

What is Included in Massachusetts Other Credits?

See Schedule CMS for a complete list: Angel Investor Credit Taxpayers subject to tax under MGL ch 62 may be eligible for an Angel Investor Credit (AIC) equal to 20% of the amount of qualifying investments in a qualifying business, and 30% of the amount of qualifying investments made by a taxpayer investor in a qualifying business located in a “Gateway municipality,” as defined in MGL [...]

Massachusetts Income Tax Paid To Another State

Taxes Due Any Other State If any of the income reported on this return is subject to taxation in another state or jurisdiction and you have filed a return and paid taxes in the other state or jurisdiction, complete the following worksheet and enter the amount of credit in line 30. Do not include taxes paid to the U.S. government. (This credit does not apply to city or local taxes.) You are [...]

What is the Massachusetts Qualified Contributory Pension Deduction?

Deductible Amount of Qualified Contributory Pension Income from Another State or Political Subdivision Included in Form 1, Line 4 Massachusetts allows a deduction for contributory pension income received from another state or one of its political subdivisions that does not tax such income from Massachusetts or its political subdivisions. For guidelines to determine which state’s pensions [...]

Who Is Eligible to Exclude Income Under MGL Ch. 41, Sec 111F or US Tax Treaty?

Massachusetts Amounts Excludible Under MGL Ch. 41, Sec 111F or US Tax Treaty Massachusetts allows an exclusion from income of amounts received by a firefighter or police officer incapacitated in the line of duty, per MGL Ch. 41, sec. 111F, and an exclusion from income of amounts received by qualifying students exempt under a U.S. tax treaty. Enter any excludible amount of income received while [...]