Tax Season Starts Soon: What To Know When Filing 2024 Income Tax In MA

MASSACHUSETTS — Taxpayers in Massachusetts will notice a few changes when they file their 2024 federal income tax returns. Tax season opens Monday, Jan. 27, with an option for most taxpayers to file for free.

Some of the changes announced by the Internal Revenue Service involve tax brackets adjusted for inflation, while others are aimed at protecting taxpayers from scams and schemes and tax professionals from having their credentials compromised,

The IRS expects 140 million people to file individual returns before the filing deadline on Tuesday, April 15. People who need more time can request an extension, giving them until Oct. 15 to file without penalties.

The deadline for filing 2024 Massachusetts income tax returns is also April 15.

Here’s what Massachusetts taxpayers need to know:

Brackets Adjusted For Inflation

The new income tax brackets adjusted for inflation are:

• 37 percent for incomes greater than $609,350 ($731,200 for married couples filing jointly);
• 35 percent for incomes over $243,725 ($487,450 for married couples filing jointly);
• 32 percent for incomes over $191,950 ($383,900 for married couples filing jointly);
• 24 percent for incomes over $100,525 ($201,050 for married couples filing jointly);
• 22 percent for incomes over $47,150 ($94,300 for married couples filing jointly);
• 12 percent for incomes over $11,600 ($23,200 for married couples filing jointly);
• 10 percent for incomes less than $11,600 ($23,200 for married couples filing jointly).

What Is The Standard Deduction?

The standard deduction for married couples filing jointly jumped $1,500 to $29,200. For single taxpayers and married individuals filing separately, the standard deduction is now $14,600, a $750 increase. For heads of households, the standard deduction will be $21,900, up $1,100 from last tax season.

Free File Is Open Everywhere

About 70 percent of U.S. taxpayers qualify for IRS Free File, an option available to taxpayers with an adjusted gross income of $84,000 or less in 2024. It is found only on the IRS website. Now in its 23rd year, Free File offers free tax preparation software from eight companies in the public-private partnership between the IRS and Free File Inc.

It’s not just for people who file simple returns. Those itemizing deductions on Schedule A, using Schedules B and D for investment earnings, or self-employed filers using Schedule C are among those who can use Free File.

To access these free tools, taxpayers must start from the IRS Free File page. AGI, as adjusted gross income is known, is total gross income minus certain tax breaks. Calculate it on the IRS website — AGI will be on line 11 on the front page of the 2024 tax return.

Eight private-sector partners are providing guided tax software products, one of them available in Spanish. The individual providers all offer options for people with an AGI of $84,000 or less, but have different eligibility guidelines, depending on age, income, state of residency and military status.

Also, the IRS offers other programs to help taxpayers, including:

• Volunteer Income Tax Assistance/Tax Counseling for the Elderly. Taxpayers can find organizations in their community with IRS certified volunteers that provide free tax help for eligible taxpayers including working families, the elderly, the disabled and people who speak limited English.
• MilTax. A Department of Defense program, MilTax generally offers free return preparation and electronic filing software for federal income tax returns and up to three state income tax returns for all military members, and some veterans, with no income limit.

25 States In Direct File Program

Massachusetts is one of 25 in which taxpayers can directly file with the IRS for free. A dozen states were part of the original pilot program for Direct File, and it was made available to 13 more in the current tax season. Direct File covers more tax situations than during the pilot, and now includes:

• Earned Income Tax Credit
• Child Tax Credit
• Credit for Other Dependents
• Child and Dependent Care Credit
• Premium Tax Credit
• Credit for the Elderly and Disabled
• Retirement Savings Contribution Credits

New features this year include a new tool that allows taxpayers to automatically import data from their IRS accounts, including personal information, the taxpayer’s PIN and some information from the taxpayer’s W-2 form. Also new this year is a chat bot to guide taxpayers through the eligibility checker, and live chat will be available in multiple languages.

When To Expect A Refund

Most refunds are issued within 21 calendar days of filing. Taxpayers can use Where's My Refund? to check the status of their 2024 income tax refund within 24 hours of e-filing.

Refund information is normally available after four weeks for taxpayers who filed a paper return. Information on Where's My Refund? will update overnight, so there is no need to check the tool more than once a day.

Additionally, the IRS says the easiest, safest and fastest way to receive a refund is to file electronically and select direct deposit. According to the Treasury, paper refund checks are 16 times more likely to have an issue, like the check being lost, misdirected, stolen or uncashed.

People who don’t have bank accounts should check FDIC and National Credit Union Administration websites, and veterans can use the Veterans Benefits Banking Program to find participating financial institutions.

Protections Against Scammers

In response to emerging cybersecurity threats, the IRS has rolled out a new feature that alerts taxpayers of common scams and fraudulent efforts to steal taxpayer information and provides them with additional ways to validate the legitimacy of IRS communications.

Taxpayers with online accounts will notice a new banner on their account homepage alerting them of potential scams and schemes, along with a link to their digital notices and letters page to view correspondence sent to them by the IRS.

Before You Claim The Fuel Tax Credit …

Taxpayers who claim the Fuel Tax Credit will be required to use a new form that’s designed to make it harder for third-party promoters to mislead taxpayers into claiming the credit. Most taxpayers don’t qualify for the specialized tax credit, despite false social media posts to the contrary. To claim it, taxpayers need a business purpose and a qualifying business, such as running a farm or purchasing aviation gasoline to be eligible.

The IRS is also stepping up review on a variety of “other withholding” claims on Form 1040 that have been targets of scammers and schemers. The agency also is reaching out to taxpayers who have potentially been using “ghost preparers” to prepare tax returns. These preparers don’t identify themselves on the tax return, which is a red flag for taxpayers to be misled into a scam or scheme.

The IRS also reminds taxpayers it will never demand immediate payment over the phone or through gift cards. Also, the agency warns, don’t send important information like Social Security numbers, credit card information, or passwords to untrusted sources.

More filing guidance is found on the IRS website.