Massachusetts Update – Week 1

Congress passed the budget last week and it included a retroactive re-extension of several of the extenders that expired on 31 December 2016 to 31 December 2017. This includes:

  • Exclusion from gross income of qualified principal residence indebtedness (always out of scope for Massachusetts Tax-Aide volunteers)
  • Mortgage insurance premiums deductible as qualified residence interest
  • Deduction for qualified tuition & fees
  • Residential energy credit

These have not been incorporated into TaxSlayer yet; we’ll let everyone know when they are. You might consider holding any returns that would be affected to avoid a later amendment.

Reminder for counselor and EROs – you cannot e-file a federal return with a $0 AGI. See the NTTC annotated version of 4012, page 11 (bottom) for instructions on what to do to allow e-filing.

TaxSlayer will create and transmit the appropriate Profit or Loss from Business schedule – Schedule C or Schedule C-EZ – to the IRS. You should include both in your custom print sets to enable printing of whichever schedule is created. Note that Massachusetts uses only MA Schedule C.

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