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March 7, 2020
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can local tax be included in the credit in MA state return?

  • March 7, 2020
  • 1 reply
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Massachusetts allows me to claim a credit for the taxes paid to the other state such as Pennsylvania on my MA resident return. I also paid local tax to PA via w2 withhold. Can this local credit be included in the credit in MA state return? 

    Best answer by KathrynG3

    No. You are correct. Massachusetts differs from federal deductions, which would allow all state and local tax as an itemized deduction.

    Please see page 14 of 2019 Form 1 Instructions of Massachusetts for confirmation.

    1 reply

    March 7, 2020

    UPDATE: Thanks @KathrynG3 for the research.

    The local and city taxes cannot be used as a credit for Massachusetts.

    [ Edited 3/10/2020 | 4:54pm PST ] 

     

     

    March 10, 2020

    hmm, I happen to see below article, it says this credit is not allowed for "Any city or local tax". Did I read it wrong?

    https://www.mass.gov/service-details/learn-about-the-income-tax-paid-to-another-jurisdiction-credit

    KathrynG3
    KathrynG3Answer
    March 10, 2020

    No. You are correct. Massachusetts differs from federal deductions, which would allow all state and local tax as an itemized deduction.

    Please see page 14 of 2019 Form 1 Instructions of Massachusetts for confirmation.