Instructions For Form 1 - Massachusetts Resident Income Tax - 2013 Page 15
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44efore You egin
3
Major 2013
subject to limitations based on the taxpayer’s total
For Massachusetts personal income tax purposes,
income and the assessed value of the real estate,
same-sex couples formerly combined two individ-
which must not exceed $700,000. For tax year
ual federal returns to come up with the Massachu-
Tax Changes
2013, an eligible taxpayer’s total income cannot
setts figure to enter on the joint Massachusetts
exceed $55,000 in the case of a single filer who is
return. They will no longer need to do this, and
Filing Due Dates
not a head of household filer, $69,000 for a head
will take the applicable Massachusetts figures di-
Form 1 is due on or before Tuesday, April 15, 2014.
of household filer, and $82,000 for joint filers. In
rectly from their federal form(s), the way other
order to qualify for the credit, a taxpayer must be
married couples complete their tax returns.
Duty to Obtain Health Insurance; Penalty
age 65 or older and must occupy the property as
for Failure to Obtain Health Insurance
Current Code Provisions
his or her principal residence. See TIR 13-16 for
Most Massachusetts residents age 18 and over
As a general rule, Massachusetts will not adopt
more information.
are required to have health insurance, if it is af-
any federal tax law changes incorporated into the
fordable to them. Residents who have access to
Employer Wellness Program Tax Credit
Internal Revenue Code (“Code”) after January 1,
affordable coverage but do not obtain the cover-
Effective for tax years beginning on or after Janu-
2005. However, certain specific provisions of the
age may face state tax penalties pursuant to G.L.
ary 1, 2013, a Massachusetts business that em-
personal income tax automatically adopt the cur-
c. 111M, sec. 2. Adults who can afford health in-
ploys 200 or fewer workers may qualify for a tax
rent Code. Provisions of the Code adopted on a
surance are required to have coverage each
credit for up to 25% of the cost of implementing a
current Code basis are (i) Roth IRAs, (ii) IRAs,
month of the year, although 63-day gaps in cover-
“certified wellness program” for its employees. A
(iii) the exclusion for gain on the sale of a princi-
age are allowed. The monthly penalties for failing
taxpayer seeking to claim the credit must apply to
pal residence, (iv) trade or business expenses, (v)
to obtain affordable coverage for taxable year
the Department of Public Health (DPH) for certifi-
travel expenses, (vi) meals and entertainment ex-
2013 are set out in TIR 13-9 and are based on half
cation of its wellness program. DPH will approve
penses, (vii) the maximum deferral amount of gov-
of the minimum monthly insurance premium for
a dollar amount of credit for a qualifying taxpayer
ernment employees’ deferred compensation plans,
which an individual would have qualified through
and issue a certificate to be provided in connection
(viii) the deduction for health insurance costs of
the Connector.
with filing a tax return in order to claim the credit.
self-employed, (ix) medical and dental expenses,
Schedule HC, Health Care Information, must be
The amount of the credit that may be claimed by
(x) annuities, (xi) health savings accounts, and (xii)
completed by all full-year residents and certain
a taxpayer cannot exceed $10,000 in any tax year.
employer-provided health insurance coverage and
part-year residents age 18 and over to notify the
DPH has promulgated a regulation, 105 CMR
amounts received by an employee under a health
Department whether or not they had health insur-
216.000, entitled Massachusetts Wellness Tax
and accident plan. See TIRs 98-8, 02-11, 07-4, and
ance in each month of 2013. Taxpayers who did
Credit Incentive, which sets forth criteria for autho-
09-21 for further details on the Massachusetts
not have coverage for all of 2013, or had a gap in
rizing and certifying the credit. The credit is set to
personal income tax current Code provisions.
coverage of four or more consecutive months will
expire on December 31, 2017.
Earned Income Credit
need to determine if they had access to affordable
Same-Sex Marriage
For federal income tax purposes, the American
health insurance (through an employer or the gov-
Beginning May 16, 2004, Massachusetts law per-
Taxpayer Relief Act (P.L. 112-240) makes perma-
ernment or on their own). Worksheets and tables
mitted same-sex couples to be married. Thus, for
nent or extends through 2017 enhancements to
are available to determine whether the taxpayer
Massachusetts personal income tax purposes,
the earned income tax credit. The Massachusetts
had access to affordable health insurance.
same-sex spouses have been entitled to file as
earned income tax credit equals 15% of the federal
If it is determined that a taxpayer could have af-
married persons, jointly or separately. See TIR
earned income tax credit received by the taxpayer
forded health insurance, the taxpayer has the right
04-17. However, under prior federal law, same-sex
for the taxable year. Therefore, Massachusetts al-
to appeal the application of the penalty due to
marriage was not recognized and same-sex cou-
lows 15% of the amount the taxpayer receives
hardship by requesting an appeal to the Connec-
ples were required to file as individuals for federal
federally under IRC sec. 32.
tor on the Schedule HC.
income tax purposes. Where elements of Mass-
Qualified Charitable Distribution from an
achusetts taxation derive from federal law, such
For more information about the health care reform
Individual Retirement Account (“IRA”) —
as the definition of gross income, or state deduc-
law, including DOR’s regulation at 830 CMR
IRC sec. 408(d)(8)
tions that are based on a federal counterpart,
111M.2.1, Health Insurance Individual Mandate;
same-sex spouses were required to perform spe-
The Pension Protection Act of 2006 (P.L. 109-280)
Personal Income Tax Return Requirements, or the
cial calculations for Massachusetts purposes to
provided an exclusion from federal gross income
Connector’s regulation at 956 CMR 6.00, Deter-
adjust the federal return information by taking the
for distributions made in tax years 2006 and 2007
mining Affordability for the Individual Mandate,
different marital status into account to arrive at the
from traditional and Roth IRAs to qualified charities
see the Connector’s website at
proper Massachusetts tax figure.
that would otherwise be taxable income. The federal
or DOR’s website at
Act allowed taxpayers age 70
1
⁄
or greater to make
2
As a result of the U.S. Supreme Court decision,
Circuit Breaker Tax Credit Increased
tax-free distributions from traditional and Roth
United States v. Windsor, 133 S. Ct. 2675 (2013),
A credit is allowed to an owner or tenant of resi-
IRAs to qualified charities for the 2006 and 2007
same-sex spouses may, in cases where applicable
dential property located in Massachusetts equal to
tax years, not to exceed $100,000 per tax year.
state law recognizes same-sex marriage, file their
the amount by which the real estate tax payment
federal tax returns as married persons, jointly or
Subsequently, the federal exclusion was extended
or 25% of the rent constituting real estate tax pay-
separately. See Rev. Rul. 2013-17 and any subse-
for distributions made in tax years 2008 through
ment exceeds 10% of the taxpayer’s total income,
quent federal guidance.
2011. The American Taxpayer Relief Act of 2012
not to exceed $1,030. The amount of the credit is
(P.L. 112-240) extends the exclusion for distribu-
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial