Tax Day is only a few months away, and now is the time to get your taxes organized. There are a lot of records to get in order, whether you are doing your taxes yourself or enlisting the help of an accountant for your tax preparation. In the flurry of paperwork and tracking down of receipts, it can be easy to overlook some of the deductions that you qualify for. At ABC Payroll, we make tax preparation in MA simple, so you can maximize your refund and minimize your stress.
Our accountants are here to help you with your MA tax preparation. Here are some deductions you shouldn’t overlook.
IRA Contributions
By contributing to your IRA, you can save for retirement and reduce your taxable income. For the 2023 tax year, the maximum contribution you can make is $6,500 for those under age 50 or $7,500 for those age 50 and over. If you haven’t reached that maximum contribution, you still have time. You can contribute up until the unextended federal tax filing deadline, which is April 15, 2024. However, in Massachusetts, you have a few extra days. The deadline in Massachusetts is April 17 because of the Patriot’s Day holiday.
HSA Contributions
If your health insurance plan allows for a health savings account (HSA), you can contribute to it up until the tax deadline, just like with your IRA. Also like your IRA, there are limits to your annual HSA contributions. For the 2023 tax year, you can contribute up to $3,850 for self-only coverage or $7,750 for family coverage. Anyone 55 and older can contribute an additional $1,000 as a catch-up contribution.
Student Loan Interest
If you have student loans, you can deduct some of the interest that you pay each year. You can deduct up to $2,500 in student loan interest as long as you are within a qualifying income bracket. If you take the standard deduction, you can still get the student loan interest deduction.
MA Tax Preparation with ABC Payroll
We understand that tax preparation in MA can be complicated, which is why our accountants at ABC Payroll are here to help you. We know all the ins and outs of state and federal tax law, so we can ensure you get the most out of your tax deductions.
