It’s time to prepare – DRAFT 2021 tax forms are available for review
Seems like as soon as one season ends, another begins. Our team worked to get DRAFT TY2021 tax forms for personal income tax and corporate excise up on the DOR website. If you have comments or questions, send them to dorforms@dor.state.ma.us.
What’s the difference? –MA vs. Fed – corporate edition
Back in May, we told you about our new MA/Fed differences for Personal Income Tax page, and now we’ve taken the same steps to outline the MA/Fed differences for corporate excise as well. Take a look at the new page on our website.
Renew 2020 small business energy exemption certificates
Small businesses that registered for an energy exemption certificate in 2020 will need to renew those certificates by December 31, 2021. The renewal option will be available through MassTaxConnect as of November 1. Keep an eye on the information page for instructions on how to renew.
HIRD due date approaches
The annual Health Insurance Responsibility Disclosure (HIRD) filing period for employers to report on employer-sponsored insurance runs from November 15 through December 15. This year, a question has been added to the online HIRD form relating to Health Connector Employee Choice. To learn more about HIRD, visit the FAQ page on our website.
New pass-through entity legislation preserves federal deduction for state income tax
Under the new legislation, if a pass-through entity elects to pay the new entity-level tax, the aggregated income would be subject to a 5% tax at the entity level. Each partner or member would then be allowed a credit on their MA individual tax return equal to 90% of the tax paid by the entity on their share of the entity’s income. Keep an eye out for the new return that’s currently being developed and some FAQs.
REMINDER: How to handle taxes on unemployment income
Unemployment is generally taxable. But things changed during the COVID emergency for those receiving unemployment benefits in 2020 and 2021. Be sure to review the FAQs and guidance on who may be eligible to deduct unemployment benefits. Remember that a taxpayer could be eligible for a deduction on their federal tax return but not on their Massachusetts tax return – a worksheet will help with that.
Prior DOR News issues
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