Massachusetts tax filing applies if you work in Massachusetts
Every individual resident of Massachusetts who earns or accumulates Massachusetts gross income over $8,000 must file a return of all the income. Income can be from a job you hold, interest earned on savings, social security, winnings from the lottery, or any other means that puts money in your pocket. It is all income regardless where it comes from. I know paying taxes on our hard-earned income stinks, but we all have to report it and file a tax return – state and federal.
Full year residents who earn or accumulate Massachusetts gross income over $8,000 during the taxable year must make a Massachusetts tax filing for their income tax return. Gross income is income earned prior to taxes being withheld. Residents must file Massachusetts Form 1 entitled Resident Individual Income Tax Return.
Nonresidents who work in Massachusetts or earn income though sources within Massachusetts must file income tax returns with Massachusetts if their income surpasses either $8,000 or the prorated personal exemption to which they are entitled. These are according to which is less. Nonresidents file Massachusetts Form 1 NR/PY entitled Nonresident/Part-Year Resident Individual Income Tax Return.
Part-year residents who obtain or accumulates Massachusetts gross income over $8,000 during the taxable year must file a Massachusetts income tax return. The form that part-time residents file is entitled Nonresident/Part-Year Resident Individual Income Tax Return or Massachusetts Form 1 NR/PY.
What if I Owe Money to Department of Revenue in Massachusetts?
April 19, 2016 is the Massachusetts tax filing deadline. File your taxes by that deadline regardless if cannot pay the amount due with my return. If you don’t have the total amount you owe on your return, you should try to pay 80% required so you can file an extension. If you cannot reach that amount, then pay what you can. When you file on before the deadline, the Massachusetts Department of Revenue you will not have to pay late filing penalties, but you will still have the interest and late payment penalties. However, even if you can’t pay the 80 percent, you are still must file on time. DOR will issue you a bill for the balance due, plus the interest and late payment penalty.
If the amount due is less than $5,000, you may arrange a payment option. To determine if you qualify, Worthtax can help you access and file the application accurately, without all the guess work. For other dollar amounts due, Worthax can give you tips on how to avoid collections. Keep in mind the Massachusetts can put a lien on your bank accounts and/or put a levy against your earnings. We can help you arrange a small payment agreement which may allow you to make monthly payments to meet your tax obligation.
Note: If you go with a payment agreement, interest and penalties will remain adding up on any portion of the balance outstanding.
No matter how you slice it when it comes to receiving or accruing income from a Massachusetts business or employer, you will have to file your taxes with the Massachusetts Department of Revenue. There are alternatives for you to select from when you file your income taxes for Massachusetts. The fastest option for receiving your refund is to go with electronic tax filing. To get started, call Alex Franch, BS EA at 781.849.7200 for additional information. Worthtax is an ultra-convenient service that uses a triple-check accuracy system that will help you get your taxes completed and filed on time. Worthtax has locations in Quincy, Weymouth and Dedham.