HRB-02 Mass
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Created by:
scsigirl Plus on October 23, 2010
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Description:
H&R Block Ch 2 Mass
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9 terms
Terms | Definitions |
|---|---|
 Income Tax Rates (MA) | Income is cassified into three groups, 5.3% income, 12% income and long term capital gain income. |
| 5% Income (MA) | • Wages, salaries, tips, foreign employment • Pensions annuities, state pensions • IRA/KEOGH and Roth IRA distributions • Taxable interest and dividends • Alimony received • Business, professional, trade and farm income • Income or loss from rental real estate • Partnership and S corp income or loss • Trust income or loss • Royalty and REMIC income or loss • Unemployment compensation • Winnings, jury duty pay, prizes, awards • Forgiveness of debt • Mortgage forgiveness • Other income from US 1040 Line 21 |
| 12% Income (MA) | • Short term capital gains • Long term gain on collectibles |
| Long-Term Capital Gain Income (MA) | Currently taxed at 5.3% |
| Additions to Federal Gross Income (MA) | Mass Gross Income includes: • Municipal bond earnings NOT from MA. • Employee contribution to MA pension plans. • Foreign earned income. |
| Subtractions from Federal Gross Income (MA) | Mass Gross Income excludes: • Interest earned from US obligations (US Savings Bonds & Treasury Bonds) • Social Security or Railroad Retirement Income • VA pensions and worker's compensation • Contributory pensions from the US government and MA plans • State or federal income tax refunds • Income from annuities, pensions, IRA or KEOGH plans. • Non-contributory military pensions or survivorship benefits. • Amounts received by a firefighter or police officer incapacitated in the line of duty. |
| Residence Criteria (MA) | • Taxpayer's legal residence is in MA for the entire year, OR • Taxpayer maintains a permanent residence in MA and spends more than 183 days in the state. |
| Part-Year Resident (MA) | An individual who either: • Moves to MA during the year and becomes a resident, OR • Moves out of MA during the year and establishes a residence outside the state. |
| Social Security Tax Deduction (MA) | A maximum of $2,000 per taxpayer may be deducted on MA Form 1. |
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