Mass. Provides unemployment, Fed. Compensation tax relief
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“href =” http://184.108.40.206/feed-generator/# “> Abraham Gross · April 6, 2021 at 12:18 p.m. ET
Massachusetts will provide tax deductions for unemployment compensation, canceled federal business loans and other benefits received under federal relief programs for the COVID-19 pandemic, the state tax agency said in draft guidelines.
In a draft technical briefing release issued Monday, the Massachusetts Department of Revenue explained that recently enacted state law provides for deductions for unemployment benefits received in 2020 and 2021 and cancels protection program loans. federal paychecks. Coronavirus Aid, Relief and Economic Security Act .
Under the law enacted Thursday, the state will allow individuals a deduction of up to $ 10,200 in unemployment compensation included in federal gross income if the individual’s household income does not exceed the federal poverty line. more than 200%, according to the ministry. The agency also said it would waive penalties for late payment of unemployment benefit tax until January 1, 2022.
In addition, the department said that taxpayers are allowed to deduct the forgiveness of debt income from canceled PPP loans, reflecting the federal exclusion. Massachusetts will also give a deduction for other federal COVID-19 relief, including disaster loans and Small Business Administration payments, the agency said, reminding individuals in accordance with the federal extension for income taxes.
– Edited by Vincent Sherry.
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