Wait patiently for all your tax documents

Before calling for an appointment with your tax advisor or sitting down to work on your own taxes, make sure you have all the documents that you need. At this time, January 25, 2010, some people have all their tax documents, some are still waiting and some people think they have everything. Patience is important. Companies (those you work for, banks, healthcare companies, investment companies, etc) have until January 31st to have documents POSTMARKED. This year January 31st is a Sunday, therefore they have until February 1st. This means that paperwork will still be coming in mailboxes the first week of February. It is important to be sure you have all information when preparing your return.

Major Differences between Federal and Massachusetts Income Taxes

There are a several differences to be aware of this year when preparing your 2009 taxes. The following are three examples of items that may not be taxable on your Federal 1040 tax return but ARE taxable on your Massachusetts tax return:
· The first $2,400 of unemployment benefits in 2009 (Federal you pay on $2,401 to total received, State of MA you pay on ALL benefits received)
· Relief of indebtness or cancellantion of debt
· Teacher deductions

The State of MA is choosing to make all of these items fully taxable and are not matching the Federal rules.