Massachusetts state tax basis is the Federal Adjusted Gross Income (AGI).
Interest/Divident Income: Exempts U.S. government bonds. Exclusion for interest from state banks (Single--$100/Married-J--$200).
Rent Income: State schedules also provided
Capital Gain: Own
Unemployment Income: Same as federal
Social Security Benefits: All social security income is exempt from state taxes.
State Bond Interest: Taxable except Massachusetts obligations
Health Savings Accounts: Same as federal
Disability: Disability income related to terrorist or military action is exempt
Federal Income Tax: Not deductible.
Other Taxes: Deductions for either: (a) up to $4,800 of care expenses [up to $9,600 for two or more qualifying individuals] for a child under age 13; or disabled dependent/spouse; or (b) $3,600 for a dependent household member under age 12 or 65 or older [up to $7,200 for two or more dependents]. In addition, deductions for the following: (a) 50% of rent ? maximum deduction $3,000 (MS -- $1,500); (b) amounts paid for social security, Medicare, railroad, federal and state retirement systems up to $2,000/person; (c) either the federal deduction for tuition and fees or tuition that exceeds 25% of Massachusetts AGI; and (d) up to $800 of amounts paid for home heating fuel [for November and December, 2005, and subject to income limitations]; (e) certain income from firefighters or police officers; (f) employee business expenses; and (g) moving expenses allowed as federal itemized deductions. No deduction for one-half of self-employment tax or for contributions to self-employed retirement plans.
Check other state tax links below.