Technical Information Release

Technical Information Release TIR 08-5: Massachusetts Tax Treatment of Economic Stimulus Payments

Date: 05/01/2008
Organization: Massachusetts Department of Revenue
Referenced Sources: Massachusetts General Laws

Personal Income Tax

This Technical Information Release explains the Massachusetts personal income tax consequences of federal economic stimulus payments to individuals as authorized by P.L. 110-185, § 101.

Public Law 110-185, § 101 authorizes the Internal Revenue Service (IRS) to issue economic stimulus payments to eligible taxpayers. The payments are the result of a federal credit treated as a payment against federal income tax. The IRS will start issuing the payments beginning in April of 2008.

The amount of the credit is not included in the taxpayer's federal gross income. [1] Massachusetts gross income is federal gross income with certain modifications not relevant here. G.L. c. 62, § 2(a). Since the economic stimulus payments are not included in federal gross income, they are not included in Massachusetts gross income and thus not subject to the Massachusetts personal income tax.

/s/Navjeet K. Bal
Navjeet K. Bal
Commissioner of Revenue


May 1, 2008

TIR 08-5

Table of Contents

[1] Staff of the Joint Comm. on Taxation, 110 th Cong., Technical Explanation of the Revenue Provisions of the H.R. 5140, The "Economic Stimulus Act of 2008."

Referenced Sources:

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