Your 2011 Tax Return

Please read through our posts regarding the 2011 tax changes; there are some important

If you have questions on any of these highlights or want to address specific issues just give us a call and we can set up an appointment for you.

See you this coming tax season!

Driver’s License Revocation

Your driver’s license can be revoked or suspended for nonpayment of taxes.

Federal Bonus Depreciation

Federal Bonus Depreciation – Not allowed in Mass.

New Current Code Provisions

New Current Code Provisions – Mass will not adopt any Federal changes incorporated into the IRS code after Jan 1, 2005.  However, certain specific provisions of the personal income tax automatically adopt the current code.

Tuition & Fees Deduction

Tuition & Fees Deduction – Mass will not adopt this extension.

Mortgage Forgiveness

Mortgage Forgiveness – Mass does not adopt this exclusion.

Health Care Information

Health Care Reform Act, most Mass residents age 18 and over are required to have health insurance, if it is affordable to them.  Schedule HC must be completed by all full year residents and certain part year residents. The monthly penalties for failing to obtain affordable coverage are based on half of the minimum monthly insurance premium for which an individual would have qualified through the Connector. These penalties apply only to adults who are deemed able to afford health insurance.

Circuit Breaker Tax Credit

A credit allowed to an owner or tenant of residential property in Mass  equal to the amount by which the real estate tax payment or the rent constituting real estate tax payment exceeds 10% of the taxpayer’s total income not to exceed $980.  Eligible taxpayer’s total income cannot exceed: $52,000 Single, $65,000 Head of Household, $78,000 for Married Filling Joint.  Taxpayers must be over 65 years of age. Homeowners assessed valuation cannot exceed $729,000 for primary residence.

Filing Requirements

If your income is over $8,000 you are generally required to file.

Personal Exemptions

$4,400 for Single and MFS, $6,600 for head of household,. & $8,800 for MFJ.  If married filing separately, you do not qualify for No Tax Status or the Limited Income Credit.