Both Social Security and Medicare make up the FICA taxes, which stands for the Federal Insurance Contributions Act. With the exception of the Medicare surtax, your employer will match your FICA tax payment and contribute as well. All new employees must complete both federal Form W-4 and s Massachusetts Form M-4, Massachusetts Employee’s Withholding Exemption Certificate, for tax withholding purposes.

• The credit amount varies based on the taxpayer’s income, marital status, and number of qualifying children, with the intention of providing greater assistance to families with children.
• If you paid personal income taxes in Massachusetts in 2021 and filed your 2021 Massachusetts tax return by October 17, 2022, you should have received, or will soon, receive a 2022 Massachusetts tax rebate.
• A city or town may also charge a local sales tax on the sales of restaurant meals.
• The IRS offers free fillable forms with the caveats that there is no step-by-step guidance, it offers limited basic calculations and does not support any state tax filings.
• Like the W-4, the M-4 can be revised and filed again at any point during the year if your situation changes (for example, if you gain a dependent).
• En español | Though the Bay State will charge a surtax for income over $1 million starting with tax year 2023, for now its flat income tax rate of 5 percent puts it in the lower half of the 50 states.

Other property tax exemptions are available in many Massachusetts cities and towns, so contact your local tax assessor for more information. Massachusetts full-year and part-year residents who have a principal residence within the state may qualify for the solar, wind and energy tax credit. ma state income tax You can claim $1,000 or 15% of the net expenditure for the renewable energy source property, whichever is less. People who aren’t registered to collect sales/use tax in Massachusetts, and who make an occasional out-of-state purchase for business or personal use, don’t need to register.

TaxSlayer

The federal standard deduction for a Head of Household Filer in 2021 is $ 18,800.00. When the IRS signed the latest “Free File Alliance” agreement in 2019, it dropped its commitment to not create a competing tax filing system, as ProPublica reported. TaxSlayer also offers free state returns https://www.bookstime.com/ for Massachusetts, Rhode Island, Vermont and New York but not Connecticut or Maine. Use tax is a 6.25% tax paid on out-of-state or out-of-country purchases that are used, stored or consumed in Massachusetts and on which no Massachusetts sales tax (or less than 6.25%) was paid.

You will then have until Oct. 15, 2024, to file your return but, you still need to make an estimated payment on April 15. According to the IRS, “an extension of time to file your return does not grant you any extension of time to pay your taxes.” As far as standard deductions go, a state personal exemption exists and varies based on your filing status. Massachusetts is unique in that contributions to social security and medicare are both deductible up to a certain limit. Aside from income tax, another federal withholding that applies to most workers in Massachusetts is Social Security tax.

Tax-Rates.org — The 2023-2024 Tax Resource

Massachusetts has some of the highest cigarette taxes in the nation. The tax is $3.51 per pack of 20, which puts the average price of cigarettes in Massachusetts at around $9 per pack. To access the free software option, you must use the provided links. Taxpayers living in Maine or Massachusetts have until Wednesday, April 17, 2024, to file because of the Patriot’s Day and Emancipation Day holidays, the IRS said. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. If you would like to report a bug or issue with one of our pages or calculators, please direct message us on twitter instead.

This is to ensure that taxpayers are able to meet the statutory requirement that taxes due are paid periodically as income is received during the year. Generally, you must make estimated tax payments if you expect to owe more than $400 in taxes on income not subject to withholding. So, if you pay more than $12,400 in state income taxes and other itemized deductions, then consider itemizing your taxes.