Wednesday, February 1, 2023

A Few Things About Massachusetts Taxation Which Are New For Tax Year 2022

The MA taxation of individuals is now based on the Internal Revenue Code as of January 1, 2022 – MGL Ch. 62, §(1)(c). This means that quite a few current federal code provisions which we could NOT use on our state return (because MA previously followed the Code as of 2005) are now available. Here are some which will be widely seen and used…

Alimony and separate maintenance. Income is no longer reported; the deduction may no longer be claimed. Conforms with IRC §62(a)(8) and (a)(10). The deduction is still shown on Schedule Y, line 3 (for pre-2018 agreements). Likewise, the income is still shown as reportable on Form 1, line 9 as taken from Schedule X (line 7). Again, for pre-2018 agreements.

Educators expense deduction (new for MA). Eligible educators may deduct a maximum of $300 per person; if both taxpayer and spouse are eligible educators the maximum is $600 ($300 + 300). IRC §62(a)(2)(D).

Where to deduct? You will need to drill down to the instructions to find this---Schedule Y, line 9a (certain qualified deductions from US Form 1040).

Income from discharged qualified principal residence indebtedness, i.e. mortgage loan forgiveness income. MA now recognizes this exclusion from income if claimed on the federal return. IRC §108(a)(1)(E).

Like-kind exchanges. Until this tax year (2022) MA allowed the more broadly based deferral of income and did not confine it to real estate. However, MA now conforms to the federal rule---real estate only. IRC §1031.

Review MA TIR 23-1 for a more complete list of the applicable provisions.

Wednesday, December 7, 2022

A Message From The Chapter President


Ronald Fisher, EA, President
Massachusetts/Rhode Island NATP Chapter

As I look forward to serving my fifth year as your President, I am reminded that our Chapter, and NATP at large, has never been more relevant and important for those of us specializing in tax preparation by providing outstanding education opportunities and networking for members. Hopefully you are all taking advantage.

The changes around us, whether social, political, technological, economic or otherwise, require that we help our clients navigate through new and increasingly complex tax landscapes. I am proud of our Chapter's successes over the last year, particularly in providing opportunities for meaningful engagement of our members and education, professional development and growth opportunities. I have come to think of our chapter as a “best in class” team that provides opportunities to build relationships, learn, teach, mentor and share top quality tax help and advice.

I'd like to once again give a special shout-out of appreciation to our Chapter Board of Directors, many of which are past Presidents. This organization would not exist without their tireless work, guidance and support they provide each and every day. And, as a reminder, this Board exists solely for you and we are always open to feedback from members. If you have an idea, suggestion, comment, improvement, or criticism, please contact me or any of the other Board members and convey your thoughts. If you want to make a difference, let us know you want to get more involved in the Chapter.

Thank you, members, for your continued participation, enthusiasm and for your support and advice. I’m looking forward to a fantastic 2023, and I am grateful for your partnership and dedication to our Chapter. I wish you all a successful 2023, and I look forward to seeing you at our upcoming State Tax Update Seminar on January 5th!

Best regards,

Ron Fisher, EA