A Heads Up on New Legislation that Could Impact 2021 Tax Year
Recent Massachusetts legislation may impact tax year 2021 filings. The changes include (1) an alternative method for calculating the sales and use tax or room occupancy excise advance payment, (2) the new dependent care or household dependent credit (replacing former deductions) including limitations for part-year residents and nonresidents, (3) new deductions for personal income and corporate excise taxpayers related to MGCC grants, and (4) the allowance of deductions for personal income taxpayers related to PPP loans and other federal COVID-related relief. Please review personal income tax instructions for details. Technical Information Releases will be issued with further details on these changes.
Important Filing Season News - Including a Video Presentation!
It’s almost filing season. The IRS is scheduled to open January 24 for electronic filing. As we typically do, we’ll do a soft opening for a few days after the opening date to test the system and make sure things are running optimally. We’ll continue to publish the approved software vendors on our website. Income tax returns will be due April 19, 2022 due to holidays in DC and MA. To help you prepare, take a look at our filing season presentation which is full of useful information.
New Taxpayer Advocate Named
Mireille Eastman, who has been with the Department of Revenue for more than 16 years, will serve as the new Taxpayer Advocate. Mireille began her career with DOR as an attorney in the Litigation Bureau before joining the Rulings and Regulations Bureau. Mireille has extensive experience addressing novel and complex tax issues and communicating those issues to employees and stakeholders. You can reach Mireille at taxadvocate@dor.state.ma.us.
New Checkbox on Schedule HC
Just in – a new checkbox has been added on the Schedule HC form to help taxpayers get information about obtaining health insurance coverage. Just above Line 6 on Schedule HC, the box gives DOR permission to notify the Health Connector about a taxpayer’s interest in obtaining health insurance. The Health Connector will then reach out to the taxpayer about eligibility and coverage options.
Changes for Nonresident Composite Return Filers
Form MA NRCR has a new line for claiming withholding as well as a new line for claiming the elective Pass-through Entity excise credit. Find out more when you scroll down to Form MA NRCR Frequently Asked Questions.
Legal Guidance Available on Elective PTE Excise
In addition to the FAQ page, which is updated regularly to answer your questions, we have added legal guidance on the new elective pass-through entity excise.
New Offers in Compromise Plan
Check out our latest blog about advancements for Offers in Compromise. For additional information about Offers in Compromise, see our webpage.
Prior DOR News issues
If you missed a prior issue, visit DOR News. Also check out DOR's Tax Professionals page.
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