Massachusetts State Earned Income Credit
NOTE: Glossary words are highlighted. Click on any glossary word to see its definition.
What is the Massachusetts Earned Income Credit?
The Massachusetts Earned Income Credit is a state-level tax credit that lowers the Massachusetts state taxes of low-income working families. Massachusetts residents who are eligible for the federal Earned Income Credit are automatically eligible for the Massachusetts EIC on their state tax returns.
The Massachusetts EIC equals 15% of the federal EIC. It is a refundable tax credit, meaning you can get a refund payment if your state EIC is more than what you owe in state taxes.
The Massachusetts Earned Income Credit program is administered by the Massachusetts Department of Revenue.
Am I eligible?
If you are eligible for the federal Earned Income Credit and you are a resident of Massachusetts, you are eligible for the Massachusetts Earned Income Credit.
How much Massachusetts EIC will I get?
The Massachusetts EIC equals 15% of the federal EIC.
Example: If you live in Massachusetts and you claim a $1000 Earned Income Credit on your federal tax return, you can claim 15% of this amount, equal to $150 ( $1000 x .15 = $150 ), as your Massachusetts EIC on your state income tax return.
The Massachusetts EIC is a refundable credit:
-
If your state taxes are higher than your Massachusetts EIC, the tax credit reduces your state taxes dollar for dollar.
-
If your state taxes are equal to or less than your Massachusetts EIC, your taxes are reduced to zero and you get a refund payment for the unused part of your credit.
-
If you owe no state taxes, you get a refund payment for your entire Massachusetts EIC amount.
Note: If you are a Massachusetts same sex married couple, you must first recalculate your federal EIC amount as though your status was 'married filing jointly' on your federal return. Then claim 15% of the recalculated federal EIC as your Massachusetts EIC.
How do I claim the Massachusetts EIC?
To claim the Massachusetts Earned Income Credit, you must file a Massachusetts state income tax return with the Department of Revenue (DOR). You must file a tax return to get the state EIC, even if you do not owe any state income taxes.
WebFile for Income
An easy way to file your state tax return yourself is by using WebFile for Income, a free online tax filing system that guides you through your tax return, step by step, and does all of the calculations for you. Almost all full year Massachusetts residents can use WebFile.
To use WebFile to file your Massachusetts income tax return:
- Go to WebFile for Income on the DOR web site
- Click on the "Check My Eligibility" button to make sure you can use WebFile
- Click on "Create an Account" to register for WebFile, or enter your user name and password if you already have an account
- Follow the step-by-step instructions to file your return
- Print out a copy of your return for your records
You can find detailed instructions for using WebFile to file your return at WebFile for Income - Online Help on the DOR web site.
Mail-In Form 1
You may also file a Massachusetts state income tax return by mail. If you are a full-year resident of Massachusetts, you should file Form 1. On the 2009 Form 1, you may claim the state EIC on line 40:
- enter the number of qualifying children, if any, that you listed on your federal return
- enter the amount of EIC you claimed on your federal return
- multiply the federal EIC amount by .15 (15%) and enter the result on line 40
You can get state income tax forms and publications from the Massachusetts Department of Revenue web site:
The state tax forms are also available at most public libraries and post offices.
If you are a nonresident, or if you lived in Massachusetts only part of the past calendar year, you should use Massachusetts Nonresident/Part-Year Resident Tax Return, Form 1-NR/PY.
Note: Part-year residents are allowed to claim a state EIC amount proportional to the number of days in the year they lived in Massachusetts.
E-File and 2D Barcoding
You may also use commercial tax preparation software or tax preparation services to file your Massachusetts tax return. For information about all of your filing options, see MA Personal Income Tax Filing Options on the DOR web site.
Free Help
You can get free help filing your Massachusetts income tax return and claiming the state EIC at Volunteer Income Tax Assistance (VITA) sites in your community. See Where to Get Help in Completing Your Tax Return.
|
