In mid-April, the government began sending out direct payments to Massachusetts residents as part of the larger coronavirus stimulus package. While the money was much needed by those who lost income as a result of the pandemic, many are wondering whether there's a catch. Will the money be taxed later? Is it simply a tax refund advance that will need to be paid back next year?
One of the first boxes you'll check on a Massachusetts or Federal income tax return is your filing status. It's important to pick the right one for your situation, because this choice affects the amount of taxes you'll pay, the standard deduction you can take and any tax breaks you're eligible to claim.
Massachusetts taxpayers who adopted or started the adoption process during 2019 should review the rules around the adoption credit. While the amount of the credit increases for qualified taxpayers, the rules remain the same.
Massachusetts taxpayers with dependents may qualify to claim a few different tax credits. One of these is the child tax credit. The child tax credit benefits people whose dependent meets a series of tests. If the dependent doesn't meet those qualifications, the taxpayer may be able to claim the credit for other dependents.
With tax season quickly approaching, Massachusetts parents and students should look into tax credits that can help with the cost of higher education. They do this by reducing the amount of tax someone owes on their tax return. If the credit reduces tax to less than zero, the taxpayer may get a refund.
Little in military spouse life is more confusing than trying to figure out where, exactly, you're from. More than just a conversation starter, the answer can dictate a world of decisions, including where to register your car, where to vote in elections and, perhaps most importantly, where to file state taxes.