GREAT NEWS FOR MASSACHUSETTS STATE RETURNS!

Governor Healy recently signed a new tax bill, which provides some great increases for families and seniors. If you want to read the entire press release on that, click HERE. We listed some of the highlights below:

• Child and Family Tax Credit – Eliminates two-dependent cap and increases credit from $180 per dependent child, disabled adult, or senior to $310 for 2023 and to $440 on a permanent basis, starting in 2024. An estimated 565,000 families will benefit, and this will be the most generous universal child and dependent tax credit in the county.
• Earned Income Tax Credit(EITC) – increases credit from 30% to 40% of the federal earned income credit.
• Rental Deduction – increases cap from $3,000 to $4,000
• Senior Circuit Breaker Tax Credit – doubles credit, indexed to inflation, which equates to an increase from $1,200 to $2,400
• Deductible Commuter Transit Benefits – adds public transit fares, Regional Transit Authorities fares and bicycle expenses to deductible commuter expenses
• Property Tax Liability Reduction for Senior Volunteer Services – permits municipalities to increase the maximum property tax abatement available to seniors who perform volunteer services from $1,500 to $2,000 (check with town hall/city hall to see if your volunteer work can earn you a property tax abatement).