Educators’ Deduction
For tax years beginning on or after January 1, 2006, the Educator’s Deduction has been repealed.
Health Care Reform Act
As a result of the recently enacted Massachusetts Health Care Reform Act, most Massachusetts residents age 18 and over are required to have health insurance, if it is affordable to them. Residents who have access to affordable coverage but do not obtain the coverage, or do not obtain a waiver from the mandate, may face state tax penalties. For taxable year 2007, the penalty for failing to obtain affordable coverage by December 31, 2007 is loss of the personal exemption. There is a new form 1099-HC which you should receive from your insurance company that provides inforamtion needed to complete your MA tax return. If you do not receive it, we can complete your tax return if you have the employer ID# of your health insurance company and your subscriber number.
Home Heating Fuel Deduction
This deduction has expired as it was allowed for taxable years 2005 and 2006 only.
Military Personnel Serving in a Combat Zone
Compensation received for active service in a combat zone by members of the armed forces of the United States is excluded from Massachusetts gross income. Income earned for active service for any month during which a member below the grade of commissioned officer served or was hospitalized as a result of injuries received during service in a combat zone is excluded from gross income; a portion of such income earned by commissioned officers is also excluded. Designated combat zones include/have included: the Persian Gulf, Kosovo and Afghanistan.Tuition and Fees Deduction
For tax years beginning on or after January 1, 2006, the Tuition and Fees Deduction has been repealed. Even if Congress extends this deduction, DOR will not adopt the extension because it will occur after January 1, 2005. Generally, DOR follows the provisions of the Code as of January 1, 2005, with certain exceptions. Under the January 1, 2005 Code, this deduction was due to expire for tax years beginning after December 31, 2005.
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