There are two new updates to the Personal Income Tax Deductionsallowed in Massachusetts:

  1. For the 2023 tax year, MA taxpayers will be allowed to claim a tax deduction on their personal income tax return for charitable contributions. After being suspended for more than 20 years, this tax deduction will be reinstated for MA taxpayers beginning with the 2023 tax filing year.  The allowed charity deduction on the MA tax return equals the amount claimed as a deduction on the federal tax return, after excluding any unused charity carryover amounts for tax years prior to 2023. For taxpayers who do not itemize their federal income tax return, they are still allowed to claim a charitable deduction on their MA tax return for their charitable giving in the tax year.
  2. The allowed tax deduction for annual contributions made to a MA 529 qualified tuition savings plan has been made permanent. This tax deduction, first allowed during the 2017 tax year for MA filers, was only temporary and set to expire.  The MA law has been amended to make this state tax deduction permanent.  The allowed state tax deduction is up to $2,000 for married filing joint filers and up to $1,000 for all other filers.