Newburg | CPA – Special News Brief
November 9, 2022
Massachusetts Chapter 62F Refunds – you should see your money soon
Last week, the state of Massachusetts began issuing tax refunds in accordance with Chapter 62F of the Massachusetts General Laws. Both residents and non-residents who filed a Massachusetts income tax return for 2021 can expect to receive a refund that is equal to approximately 14% of their Massachusetts tax liability for 2021. No further action is needed as refunds are issued automatically via direct deposit or a mailed check depending on your preference indicated on your 2021 MA tax return.
For those who timely filed their state tax return, refunds are expected to be issued now through mid-December of 2022, and those who have not yet filed their 2021 return can do so by September 15, 2023 and still be eligible for this refund.
You can estimate your refund using the calculator found at the following link: https://www.mass.gov/info-details/chapter-62f-taxpayer-refunds
New “Millionaires” Tax in Massachusetts
Question 1 of the Massachusetts Election appears as if it will be passed as of noon on Wednesday November 9th, 2022, reporting at 52% of the state in favor of passing the law. The passing of Question 1 results in the 121st amendment to the state’s constitution, and the first since 2000. The new law imposes an additional 4% tax on the portion of Massachusetts sourced income that exceeds $1million (indexed for inflation moving forward), effectively meaning a 9% income tax bracket has been created for that income.
The new law subjects any Massachusetts sourced income (when over the threshold) to this 4% tax, including, but not limited to, wages, self-employment income, taxable retirement distributions, investment income, and taxable gains on sales of residences and other properties. The 4% tax will apply to tax years beginning on or after January 1, 2023.
Please contact us with any questions you may have regarding these matters at email@example.com.
Newburg | CPA can help
Newburg CPA, a Boston-based accounting firm can assist you. Contact us if you have questions.