The tax breaks Gov. Maura Healey signed into law last year
are now in effect.
Why it matters: Massachusetts taxpayers can find more relief
when doing their 2023 taxes.
What's happening: The $1 billion tax relief law includes
larger deductions for parents and renters.
The child and dependent tax credit will increase from $180
to $310 per child for 2023 and then up to $440 for 2024 and beyond.
Here are other increased tax breaks, per the state:
Earned income tax credit: Worth up to 40% of federal EITC
credit.
Senior circuit breaker credit: $2,400.
Rental deduction: $4,000.
Estate tax credit: $99,600 for everyone (effectively kills
tax for estates below $2 million).
Septic tax credit: $18,000, with up to $4,000 claimable per
year.
Lead paint abatement: $3,000 for full treatments eliminating
lead hazards at home; $1,000 for partial treatment.
Plus: The short-term capital gains tax is dropping from 12%
to 8.5%.
Be smart: The tax relief law also now requires married
couples who file federal taxes jointly to do the same for state taxes.
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