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Tax return....

TrackDayRdr

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News for the MA business owners on this site:

The House and Senate leadership announced in a press release that a compromise on COVID-19 relief legislation was reached and includes the legislative fix to exclude gross income on forgiven PPP loans from being taxed by the state.

The House is expected to vote on the legislation before them today and the Senate is expected to vote while in session next week.

For individual taxpayers:

A $1.9 TRILLION federal relief package is set to become law in the coming days. Included in the bill are a list of various tax provisions, including another round of economic impact payments to certain taxpayers, extended child tax credits, tax relief on the first $10,200 in unemployment payments for qualified workers and more.

If you had unemployment earnings in 2020, DO NOT file your returns until the retroactive change trickles down to your tax software which will not include the change for at least a week after the bill is passed.
 

AHM

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Good to know that. I just got an update for HRB and had already sent in my returns (processed and refunds received) and was wondering if it would have affected any calculations.
Note well: TurboTax Status: Not Printed or E-filed.

The Bride did the data entry,
but I haven't done the pre-filing review yet.
 

TrackDayRdr

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States (MA) will most likely follow. Many items on state return follow on and are based upon federal return results/determination/calcs.

The MA calcs have nothing to do with whether they extend the due date for filing/payments.

Last year MA only followed the Feds AFTER the majority of 2019 returns were filed/funded. Was it just a week before Ape 15th that they threw us a bone? By that time most of my clients were either already done or extended. Thanks for nothing (again), MA. Will they follow the IRS again this year? Not early enough to save me from another month of long days and midnight oil.
 

free

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States (MA) will most likely follow. Many items on state return follow on and are based upon federal return results/determination/calcs.
 

TrackDayRdr

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The initial action by MA to exempt COVID relief funds only exempted the PPP forgiveness. MA Senate included EIDL funds in it's rewrite, but still needs to run it through committee before finalizing anything to the point where tax software can catch up. How long has that emergency action taken? Too long! Entity returns were due March 15th.

Below is today's statement from Senate President Karen Spilka and Speaker Ron Mariano:

“With the federal government adjusting its tax filing deadline from April 15, 2021, to May 17, 2021, the Senate and House will act immediately to align our state deadlines accordingly. The Senate and the House expect to include this in already moving legislation that addresses emergency paid leave, unemployment insurance, and tax relief on forgiven PPP loans. This tax flexibility, which was also authorized last year by the Legislature, will provide stability and ensure residents have time to prepare and file as we continue to weather the impacts of the pandemic.”
 

GM-GUY

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My taxes were sent in on the 22nd of Feb, the IRS still says they don't have info - MA sent me my refund in a week. I've been reading about how the IRS is stupid slow this year - I won't worry until next month, then I'll have to call and ask what to do.
 

PeterC

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My taxes were sent in on the 22nd of Feb, the IRS still says they don't have info - MA sent me my refund in a week. I've been reading about how the IRS is stupid slow this year - I won't worry until next month, then I'll have to call and ask what to do.
I efiled (TurboTax) on March 4th and the $ hit my checking account on the 17th. Respectable enough.
 

FPrice

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The IRS gets your birthday from the Social Security Administration. If you want to fix this issue, start there. SSA.gov.

My mother called SSA yesterday and amazingly actually got hold a real, live human being. Turns out that they had her birth year as 1949 vs 1929. They told her to just write a letter to include some proof of her age and they will correct it.
 

Rockrivr1

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I efiled (TurboTax) on March 4th and the $ hit my checking account on the 17th. Respectable enough.

Damn! My return through TurboTax was accepted on Feb 12th and it still shows processing. It’s over 21 days so I called the IRS. It’s a waste of time as they just play a message that they are busy and can’t answer the phone at this time. Then they hang up on you.
 

Broccoli Iglesias

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Damn! My return through TurboTax was accepted on Feb 12th and it still shows processing. It’s over 21 days so I called the IRS. It’s a waste of time as they just play a message that they are busy and can’t answer the phone at this time. Then they hang up on you.
You are doing it wrong. Call the line to report tax fraud. Then report the IRS to the IRS for not sending the money you were forced to lend the govt interest free.
 

PeterC

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Damn! My return through TurboTax was accepted on Feb 12th and it still shows processing. It’s over 21 days so I called the IRS. It’s a waste of time as they just play a message that they are busy and can’t answer the phone at this time. Then they hang up on you.
Complexity ? I had, for me, a pretty normal return - home mortgage and tax stuff, typical yearly charitable donations and some basic stock stuff. Virtually a carbon copy of the year(s) before. lol
 

paul73

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Damn! My return through TurboTax was accepted on Feb 12th and it still shows processing. It’s over 21 days so I called the IRS. It’s a waste of time as they just play a message that they are busy and can’t answer the phone at this time. Then they hang up on you.
Call TurboTax service to check. It should go to ‘accepted’ status in 24hrs. Mine took 4hrs via hrblock
 

AHM

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You are doing it wrong. Call the line to report tax fraud. Then report the IRS to the IRS for not sending the money you were forced to lend the govt interest free.
I don't know why they say NES doesn't deliver...
...this kind of delivery is why I keep coming back...

Complexity ? I had, for me, a pretty normal return - home mortgage and tax stuff, typical yearly charitable donations and some basic stock stuff. Virtually a carbon copy of the year(s) before. lol
(So you're itemizing deductions?)
 

TrackDayRdr

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Yesterday evening, Governor Baker signed the long-anticipated COVID-19 relief bill into law. The legislation includes language to conform to the federal tax treatment of PPP loans forgiven in 2020, EIDL advance grants received in 2020 and the Small Business Administration (SBA) debt relief payments made in 2020. The bill also includes unemployment income forgiveness up to $10,200 for Massachusetts residents whose household incomes are at or below 200% of the federal poverty level. Click here to read more about the legislation.
 
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I haven't filed yet because of the whole situation with the MA TIR 20-15 revised guidance for non-resident remote workers and the lawsuit between NH and MA. I am almost certain that the lawsuit won't be resolved before filings are due so I am trying to decide how to proceed.

The guidance says "... such non-resident telecommuting employees must determine the portion of their wages that constitutes Massachusetts source income during the Massachusetts COVID-19 state of emergency based on either (1) the percentage of their work days spent in Massachusetts during the period January 1 through February 29, 2020 as determined under 830 CMR 62.5A.1(5)(a), or (2) if they worked for the same employer in 2019, the apportionment percentage properly used to determine the portion of their wages from that employer that constituted Massachusetts source income as reported on their 2019 Massachusetts personal income tax return."

Here is where some interpretation is needed. Can I choose to use method 1 or am I forced to go with method 2 since I did work for the same employer in 2019?

I was working remotely 1-2 days a week for most of 2019 but went up to 2-3 days in November of 2019 (obviously not related to Covid). I apportioned my days out of MA on my 2019 filing. The reason it is important is because using method 1, I can use the percentage of days I was remote from Jan 1-Feb 29th, 2020 which was 45% of the days. If I am forced to use method 2, I can only apply last year's apportionment rate which was around 20%. Hopefully NH wins and I can get most of 2020 reimbursed but I need to file SOMETHING by the deadline. Even if MA wins the case, I still think I should be able to apportion 45% of my days as out of state because I would have been remote those days with or without a pandemic.
 

TrackDayRdr

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I haven't filed yet because of the whole situation with the MA TIR 20-15 revised guidance for non-resident remote workers and the lawsuit between NH and MA. I am almost certain that the lawsuit won't be resolved before filings are due so I am trying to decide how to proceed.

File an extension and make a payment (if required) calculating your tax assuming MA wins the court case. You'll put a lid on the pot and cover your liability if MA wins, but can still get any excess refunded if they don't. Your extended 2020 returns are not due until October 15, 2021 so you will have time to wait to see whether things go your way.
 

GM-GUY

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Mailed my Federal Return on February 22 (at a post office - weighed and postage added) - the IRS still claims no info. On their site I now see a note that means, due to Covid - we are slow, we'll get to it, don't file another return, don't call us.

Mass got my refund in 8 days (this was a mailed return also).


*********** ON EDIT **************
Finally marked as received 4/8/22
Hitting the checking account 4/21/22
 
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File an extension and make a payment (if required) calculating your tax assuming MA wins the court case. You'll put a lid on the pot and cover your liability if MA wins, but can still get any excess refunded if they don't. Your extended 2020 returns are not due until October 15, 2021 so you will have time to wait to see whether things go your way.

Thanks for the sensible advice. I was planning on following the guideline and wasn't going to apportion for the entire year. The part I get hung up on is whether I HAVE to use my 2019 apportionment (20% remote / 80% in MA) or if I can apportion the percentage of days I was remote Jan 1-Feb 29, 2020 (45%). I think I'll just go with the 45% since I was legitimately remote, have a record of it, it was pre-covid, and it is in the state's guideline anyway. If Covid never had happened my percentage remote for 2020 would have been around 40-45% anyway.
 

Broccoli Iglesias

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FYI ... my wife received this Email today:

On April 1, 2021, Governor Baker signed legislation which allows taxpayers with household income up to 200% of the federal poverty level to deduct up to $10,200 of unemployment compensation from taxable income on their Massachusetts tax return. The deduction may be claimed by each eligible individual for tax years 2020 and 2021. Federal law allows a deduction of up to $10,200 if your federal adjusted gross income is less than $150,000. Since the Massachusetts income threshold is different from the federal income threshold, you may be eligible for a deduction on your federal tax return, but not on your Massachusetts tax return.

If you have already filed your 2020 Massachusetts income tax return and you believe you are eligible for this deduction, there is no need to file an amended return. The Massachusetts Department of Revenue (DOR) will recalculate all tax returns that included unemployment income and will adjust your return if you are eligible. If your return is adjusted, your reported tax for 2020 will be reduced and you may be entitled to a refund. If you have no outstanding liabilities, DOR will mail the refund directly to you. DOR expects to begin issuing these refunds in mid-May and will provide updates about when you can expect to receive them in the FAQs on their website.

If you have not filed your 2020 Massachusetts income tax return yet, you should report the full amount of your unemployment income on your Massachusetts return using line 8a on resident tax returns (Form 1) or line 10a on nonresident/part-year resident tax returns (Form NR/PY). If you are eligible for a deduction, you should report the amount of the allowable deduction on Schedule Y, line 9.

You can find more information about the new deduction in the FAQs on DOR’s website. If you have any other questions or concerns, please contact DOR at (617) 887-6367 or online through your MassTaxConnect account.
 

FrugalFannie

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Just finished my federal tax forms. Ugh. We owe. But that's because we had a some capital gains from sale of stocks. All y'all not selling will be in for a surprise when ole Joe's puppet masters cranked up the capital gains tax rates this year! We didn't owe a lot as we would have otherwise got a bit back without our gains. I would much rather owe a couple hundred at the end of the year then be owed.

BTW, Texas has NO state income tax! Take that bitches!
 
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