Solved

MA Alimony is still deductible but not tranferring from Federal

Forum|Forum|3 years ago
February 19, 2023
2 replies
0 views

First. I am aware the tax law change regarding alimony on federal taxes. I don't need that explained (again and again).

Because the date of my agreement falls after the date of the change alimony is no longer deductible for federal taxes.

HOWEVER it is still considered deductible in Massachusetts and TurboTax is not transferring the amount from Fed to State. The Federal form treats it as zero because the date makes it ineligible. I would expect TurboTax to transfer the actual amount (displayed as zero on Federal) to MA schedule Y on MA state.

I can override the amount in forms (MA Schedule Y) mode (and have it work correctly), but I cannot e-file when there is an override.

I believe this is a bug

Best answer by ErnieS0

At this point, you will need to override to include your deductible alimony. The data source for Schedule Y Other Deductions is "federal Form 1040 or 1040-SR, Schedule 1, line 19a, if filing as a resident" and line 4, Part II of the Form 1-NR/PY Income Worksheet if filing as a part-year or non-resident.

The worksheet will populate Schedule Y and deductible federal alimony will not carry forward in your situation.

You are correct that alimony payments remain deductible in Massachusetts.

See Massachusetts law about alimony.

E

ErnieS0Answer

At this point, you will need to override to include your deductible alimony. The data source for Schedule Y Other Deductions is "federal Form 1040 or 1040-SR, Schedule 1, line 19a, if filing as a resident" and line 4, Part II of the Form 1-NR/PY Income Worksheet if filing as a part-year or non-resident.

The worksheet will populate Schedule Y and deductible federal alimony will not carry forward in your situation.

You are correct that alimony payments remain deductible in Massachusetts.

See Massachusetts law about alimony.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

G

glakeAuthor

You I see the source mentioned on Fed Sched 1 line 19a. That line exists.

I'm not following what you said about the source for the NonResident MA form. Where does that get entered?

Edit: Disregard, I found it

M

makeislesstaxing21

https://www.mass.gov/technical-information-release/tir-23-1-tax-provisions-in-the-fiscal-year-2023-b...

Massachusetts has updated their IRC conformity date from as amended on January 1, 2005 to as amended on January 1, 2022. Meaning that they now conform to many federal provisions and calculations - including the deductibility of alimony paid and the taxability of alimony received. Alimony paid is only deductible if it is deductible on the Federal return, and alimony received is only taxable if it is taxable on the Federal return.

The product is handling the calculations correctly. Overrides are not needed.

G

glakeAuthor

I believe that is for next tax year. As of today I believe for TY 2022 alimony is deductible for MA irrespective of deduction on federal taxes

This on the mass.gov website TODAY

For Massachusetts income tax purposes however, Massachusetts adopts the federal rules as they existed on January 1, 2005 with respect to the deduction of alimony payments and the inclusion of such payments in income. Therefore, Massachusetts taxpayers can still take a deduction for alimony payments made to a former spouse on their Massachusetts personal income tax return and recipients of such payments must still include them in gross income for tax years subsequent to the TCJA.

https://www.mass.gov/service-details/alimony

And that is my defense if I'm wrong lol

M

MichelleK

The updated IRC conformity applies to tax year 2022.

"Pursuant to the FY23 Budget, the Massachusetts personal income tax generally conforms to the Code as amended on January 1, 2022 and in effect for the taxable year for these purposes, effective for taxable years beginning on or after January 1, 2022."

https://www.mass.gov/technical-information-release/tir-23-1-tax-provisions-in-the-fiscal-year-2023-budget-including-massachusetts-personal-income-tax-code-update#i-introduction