The State Organization Index provides an alphabetical listing of government organizations, including commissions, departments, and bureaus.
Top-requested sites to log in to services provided by the state
Massachusetts adopts the federal deduction allowed to individuals for contributions to a Health Savings Account. The deduction is subject to:
Health Savings Accounts (HSAs) are designed to help individuals save for:
For calendar year 2014, the contribution limit is $3,300 for an individual plan or $6,550 for a family plan.
Massachusetts adopts the changes to this deduction including the following provisions:
Individuals age 55 or Older
The contribution limitations are increased for individuals age 55 or older (not covered by Medicare) by the end of the calendar year. The catch-up contribution for 2014 remains at $1,000.
The combined contribution limits for the calendar year 2014, for an individual age 55 or older, is:
Massachusetts adopts the federal treatment of the earnings in an HSA account:
Effective January 1, 2005, Massachusetts adopts the federal treatment for the deduction for contributions to a Health Savings Account:
Any federal tax law changes to this exclusion won't be automatically adopted. Massachusetts will continue to follow the Internal Revenue Code of January 1, 2005.
This deduction impacts the calculation of
as it is treated as an adjustment to arrive at Massachusetts adjusted gross income on the:
Effective for tax years beginning on or after January 1, 2012, individuals who donate organs to other persons for human organ transplantation may claim an amount equal to the following expenses incurred and related to the organ donation:
“Human organ” means all or parts of:
Part-year and nonresidents are not eligible to claim this deduction.
Archer MSAs were created to help self-employed individuals and employees of certain small employers meet medical care costs for themselves as well as for their spouses and dependents.
Archer MSAs are tax-exempt trusts or custodial accounts to which tax-deductible contributions may be made by individuals with a high deductible health plan. In addition, employer contributions made on behalf of the employee are excludable from the employee's gross income.
The Act extends the Archer MSA provisions for 2 years, through December 31, 2007, thereby allowing employers and employees to establish and contribute to new MSAs in 2006 and 2007.
Since DOR follows the Code as of January 1, 2005, and these provisions were enacted into the Code after January 1, 2005, DOR doesn’t adopt the extension to establish and contribute to new MSAs.
Under the January 1, 2005 Code, the Archer MSA provisions contained a sunset date of December 31, 2005 that grandfathered in prior participants and provided that after December 31, 2005, contributions would be allowed by or on behalf of individuals who previously made (or had made on their behalf) Archer MSA contributions and employees who are employed by a participating employer.
Since DOR follows the provisions of the Code as of January 1, 2005, deductions are allowed for MSAs established prior to January 1, 2006, including any:
Self-employed individuals and employees of small employers may be permitted to maintain medical savings accounts to pay medical expenses, provided that the accounts are used in conjunction with "High Deductible" health insurance.
2014 Annual Contribution Limits
Minimum annual deductible
Maximum annual deductible
Maximum annual out-of-pocket expenses
This deduction impacts the calculation of No Tax Status and the Limited Income Credit as it is treated as an adjustment to arrive at Massachusetts adjusted gross income on the:
Self-employed persons may deduct from gross income amounts paid during the taxable year for health insurance for:
The deduction is limited to the taxpayer's annual earned income derived from the trade or business for which the insurance plan was established.
2% S Corporation shareholders may claim the deduction for health insurance premiums paid by the S Corporation on behalf of the:
This deduction may not be taken during any calendar month that the taxpayer is eligible to participate in any subsidized health plan maintained by:
If a taxpayer was eligible to participate in a subsidized health plan maintained by his wife's employer from June 30 through December 31, then he cannot use amounts paid for health insurance coverage for June through December to figure this deduction.
Federally, as an alternative to the self-employed health insurance deduction under IRC, § 162(l), a taxpayer may claim a credit under IRC § 35 equal to 65% of the amount paid for coverage of the taxpayer and qualifying family members under qualified health insurance beginning in the taxable year.
Amounts taken into account for this credit may not be taken into account in determining any deduction allowed for either the:
These deductions may still be available, despite the use of the credit, so long as the taxpayer doesn't receive a double benefit for any amounts reported.
Massachusetts doesn't adopt the federal credit. The availability of the federal credit as an alternative to the federal self-employed health insurance deduction and/or the medical and dental deduction doesn't affect the taxpayer's eligibility for either deduction in Massachusetts.
Taxpayers electing to claim the federal credit under I.R.C. §35 may add back the amount of such credit when computing either Massachusetts deduction.
The deduction is reported as an adjustment on U.S. Form 1040, Line 36 and must be entered on either:
Since this deduction must be prorated based upon the number of days a Massachusetts resident, part-year residents determine the amount allowable by multiplying the amount reported on:
Since this deduction must be prorated based upon the amount of taxpayer's Massachusetts gross income (derived from sources within Massachusetts) to Massachusetts gross income derived from all sources, as if the taxpayer were a full year Massachusetts resident, nonresidents determine amount allowable by multiplying the amount reported on:
If you’re submitting an abatement or amended tax return to show that the deduction was taken federally, you’ll need to provide the following: