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- Budget Development
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Personal Income Tax - All Detail
| TAX EXPENDITURE | FY2011 |
FY2012 |
FY2013 |
|---|---|---|---|
| 1.000 - Exclusions from Gross Income | 3,502.2 | 3,644.2 | 4,286.1 |
| 1.100 - Deferrals of Gross Income | 1,035.5 | 1,176.2 | 1,408.7 |
| 1.200 - Deductions from Gross Income | 4.1 | 4.3 | 4.5 |
| 1.300 - Accelerated Deductions from Gross Income | 94.1 | 90.7 | 86.6 |
| 1.400 - Deductions from Adjusted Gross Income | 774.0 | 793.9 | 814.9 |
| 1.600 - Credits Against Tax | 206.6 | 226.8 | 241.8 |
| TAX EXPENDITURE | FY2011 | FY2012 | FY2013 |
|---|---|---|---|
| Exclusions from Gross Income | 3,502.2 | 3,644.2 | 4,286.1 |
View tax item language
| item | description | amount |
|---|---|---|
| Exclusions from Gross Income | 4,286.1 | |
| 1.001 | Exemption of Premiums on Accident and Accidental Death Insurance 1 | 23.7 |
| 1.002 | Exemption of Premiums on Group-Term Life Insurance 1 | 11.5 |
| 1.003 | Exemption of Interest on Life Insurance Policy and Annuity Cash Value | 210.8 |
| 1.004 | Exemption of Employer Contributions for Medical Insurance Premiums and Medical Care 1 | 943.1 |
| 1.005 | Exemption of Annuity or Pension Payments to Fire and Police Personnel | N.A. |
| 1.006 | Exemption of Distributions from Certain Contributory Pension and Annuity Plans 2 | 280.1 |
| 1.007 | Exemption of Railroad Retirement Benefits | 4.6 |
| 1.008 | Exemption of Public Assistance Benefits | 229.8 |
| 1.009 | Exemption of Social Security Benefits | 839.0 |
| 1.010 | Exemption of Workers' Compensation Benefits | 8.5 |
| 1.011 | Exemption for Dependent Care Expenses 1 | 9.0 |
| 1.012 | Exemption of Certain Foster Care Payments | 3.1 |
| 1.013 | Exemption of Payments Made to Coal Miners | Negligible |
| 1.014 | Exemption of Rental Value of Parsonages 1 | 2.1 |
| 1.015 | Exemption of Scholarships and Fellowships | 19.1 |
| 1.016 | Exemption of Certain Prizes and Awards | N.A. |
| 1.017 | Exemption of Cost-Sharing Payments | Negligible |
| 1.018 | Exemption of Meals and Lodging Provided at Work 1 | 7.7 |
| 1.019 | Treatment of Business-Related Entertainment Expenses 1 | N.A. |
| 1.020 | Exemption of Income from the Sale, Lease, or Transfer of Certain Patents | N.A. |
| 1.021 | Exemption of Capital Gains on Home Sales | 239.6 |
| 1.022 | Nontaxation of Capital Gains at Death | 1,217.0 |
| 1.023 | Exemption of Interest from Massachusetts Obligations | 99.1 |
| 1.024 | Exemption of Benefits and Allowances to Armed Forces Personnel 1 | 24.5 |
| 1.025 | Exemption of Veterans' Pensions, Disability Compensation and G.I. Benefits | 30.1 |
| 1.026 | Exemption of Military Disability Pensions | 0.5 |
| 1.027 | Exemption of Compensation to Massachusetts-Based Nonresident Military Personnel | 9.5 |
| 1.028 | Exemption for Taxpayers Killed in Military Action or by Terrorist Activity | N.A. |
| 1.029 | Exemption for Retirement Pay of the Uniformed Services | 26.5 |
| 1.030 | Parking, T-Pass and Vanpool Fringe Benefits | 38.8 |
| 1.031 | Health Savings Accounts | included in 1.422 |
| 1.032 | Employer-Provided Adoption Assistance | $0.0 |
| 1.033 | Employer-Provided Educational Assistance | 8.4 |
| 1.034 | Qualified Retirement Planning Services | N.A. |
| 1.035 | Department of Defense Homeowners Assistance Plan | N.A. |
| 1.036 | Survivor Annuities of Fallen Public Safety Officers | N.A. |
| 1.037 | Survivor Annuities of Fallen Astronauts | N.A. |
| 1.038 | Discharge of Indebtedness for Victims of Terrorism | N.A. |
| 1.039 | Discharge of Indebtedness for Health Care Professionals | Negligible |
| 1.040 | Archer Medical Savings Accounts | included in 1.420 |
| TAX EXPENDITURE | FY2011 | FY2012 | FY2013 |
|---|---|---|---|
| Deferrals of Gross Income | 1,035.5 | 1,176.2 | 1,408.7 |
View tax item language
| item | description | amount |
|---|---|---|
| Deferrals of Gross Income | 1,408.7 | |
| 1.101 | Net Exemption of Employer Contributions and Earnings of Private Pension Plans 2 | 958.5 |
| 1.102 | Treatment of Incentive Stock Options | N.A. |
| 1.103 | Exemption of Earnings on Stock Bonus Plans or Profit Sharing Trusts | N.A. |
| 1.104 | Exemption of Earnings on IRA and Keogh Plans 2 | 326.2 |
| 1.106 | Nontaxation of Capital Gains at the Time of Gift | 124.0 |
| TAX EXPENDITURE | FY2011 | FY2012 | FY2013 |
|---|---|---|---|
| Deductions from Gross Income | 4.1 | 4.3 | 4.5 |
View tax item language
| item | description | amount |
|---|---|---|
| Deductions from Gross Income | 4.5 | |
| 1.201 | Capital Gains Deduction | N.A. |
| 1.202 | Deduction of Capital Losses Against Interest and Dividend Income | N.A. |
| 1.203 | Excess Natural Resource Depletion Allowance | 0.3 |
| 1.204 | Abandoned Building Renovation Deduction | 4.2 |
| TAX EXPENDITURE | FY2011 | FY2012 | FY2013 |
|---|---|---|---|
| Accelerated Deductions from Gross Income | 94.1 | 90.7 | 86.6 |
View tax item language
| item | description | amount |
|---|---|---|
| Accelerated Deductions from Gross Income | 86.6 | |
| 1.301 | Accelerated Depreciation on Rental Housing | 20.0 |
| 1.303 | Accelerated Depreciation on Buildings (other than Rental Housing) | 6.1 |
| 1.304 | Accelerated Cost Recovery System (ACRS) for Equipment | 46.8 |
| 1.305 | Deduction for Excess First-Year Depreciation | 7.7 |
| 1.306 | Five-Year Amortization of Business Start-Up Costs | 4.5 |
| 1.308 | Expensing Exploration and Development Costs | Negligible |
| 1.309 | Expensing Research and Development Expenditures in One Year | 1.2 |
| 1.310 | Five-Year Amortization of Pollution Control Facilities | N.A. |
| 1.311 | Seven-Year Amortization for Reforestation | N.A. |
| 1.312 | Expensing Certain Capital Outlays of Farmers | 0.3 |
| TAX EXPENDITURE | FY2011 | FY2012 | FY2013 |
|---|---|---|---|
| Deductions from Adjusted Gross Income | 774.0 | 793.9 | 814.9 |
View tax item language
| item | description | amount |
|---|---|---|
| Deductions from Adjusted Gross Income | 814.9 | |
| 1.401 | Deduction for Employee Social Security and Railroad Retirement Payments | 299.6 |
| 1.402 | Deduction for Employee Contributions to Public Pension Plans 2 | included in 1.401 |
| 1.403 | Additional Exemption for the Elderly | 25.9 |
| 1.404 | Additional Exemption for the Blind | 1.3 |
| 1.405 | Dependents Exemption Where the Child Earns Income 3 | N.A. |
| 1.406 | Deduction for Dependents Under 12 | 135.8 |
| 1.407 | Personal Exemption for Students Age 19 or Over | 8.4 |
| 1.408 | Deduction for Adoption Fees | 0.5 |
| 1.409 | Deduction for Business-Related Child Care Expenses | 15.4 |
| 1.410 | Exemption of Medical Expenses | 77.9 |
| 1.411 | Rent Deduction | 116.1 |
| 1.412 | Nontaxation of Charitable Purpose Income of Trustees, Executors or Administrators | N.A. |
| 1.413 | Exemption of Interest on Savings in Massachusetts Banks | 5.1 |
| 1.414 | Tuition Deduction (Over 25% of Income) | 35.9 |
| 1.415 | Charitable Contributions Tax Deduction | N.A. |
| 1.418 | Deduction for Costs Involved in Unlawful Discrimination Suits | N.A. |
| 1.419 | Business Expenses of National Guard and Reserve Members | Negligible |
| 1.420 | Archer Medical Savings Accounts | Negligible |
| 1.421 | Deduction for Clean-Fuel Vehicles and Certain Refueling Property | Negligible |
| 1.422 | Health Savings Accounts | 12.3 |
| 1.423 | Commuter Deduction | 6.7 |
| 1.424 | Self-Employed Health Insurance Deduction | 44.2 |
| 1.425 | Student Interest Loan Deduction (allowed Federally or by Massachusetts) | 29.5 |
| 1.426 | Expenses of Human Organ Transplant | 0.5 |
| TAX EXPENDITURE | FY2011 | FY2012 | FY2013 |
|---|---|---|---|
| Credits Against Tax | 206.6 | 226.8 | 241.8 |
View tax item language
| item | description | amount |
|---|---|---|
| Credits Against Tax | 241.8 | |
| 1.601 | Renewable Energy Source Credit | 1.3 |
| 1.602 | Credit for Removal of Lead Paint | 2.5 |
| 1.603 | EDIP/Economic Opportunity Area Credit & Enhanced Economic Opportunity Area Credit | 2.9 |
| 1.604 | Credit for Employing Former Full-Employment Program Participants | Expired |
| 1.605 | Earned Income Credit | 132.3 |
| 1.606 | Septic System Repair Credit | 12.5 |
| 1.607 | Low Income Housing Tax Credit | 2.0 |
| 1.608 | Brownfields Credit | 3.2 |
| 1.609 | Refundable State Tax Credit Against Property Taxes for Seniors ("Circuit Breaker") | 77.6 |
| 1.610 | Historic Buildings Rehabilitation Credit | 2.5 |
| 1.611 | Film (or Motion Picture) Credit | 2.6 |
| 1.613 | Medical Device User Fee Credit | 0.4 |
| 1.614 | Dairy Farmer Tax Credit | 0.4 |
| 1.615 | Conservation Land Tax Credit | 1.5 |
Key:
| ORIGIN | |
| IRC | Federal Internal Revenue Code (26 U.S.C.) |
|---|---|
| U.S.C | United States Code |
| M.G.L. | Massachusetts General Laws |
| Rev. Rul.; C.B. | Revenue Ruling; Cumulative Bulletin of the U.S. Treasury |
| ESTIMATES | All estimates are in $ millions. |
Footnote(s):
1 1 This item and others citing this endnote cover employee fringe benefits. We accept as standard the following treatment of these benefits: the expense incurred by the employer in providing the benefit is properly deductible as a business expense and the benefit is taxed as compensation to the employee as if the employee had received taxable compensation and then used it to purchase the benefit. Of course, there are problems with this analysis. In some cases, the "benefit" is more a condition of employment than a true benefit. For example, a teacher required to have lunch in the school cafeteria may prefer to eat elsewhere even if the school lunch is free. On the other hand, in many cases the provision of tax-free employee benefits is clearly a substitution for taxable compensation.
2 2 This item and others citing this endnote cover contributory pension plans. The standard tax treatment of these plans is as follows: Component Standard Treatment Contributions: Made out of income that is currently taxed to employees. Investment Income: Taxed to the employee as "earned" income. Distributions from Pension Funds: Tax-free to the extent they are made out of dollars previously taxed to the employees as contributions or investment income. The non-standard treatment of contributions, investment income, or distributions as described in items 1.006, 1.101, 1.104, and 1.402, results in either nontaxation or deferrals of tax.
3 3 FY13 estimates for the basic personal exemptions and the no-tax status discussed in the introduction to the personal income tax are (in millions of dollars): Personal exemption for single taxpayers: $298 Personal exemption for married couples: $556 Personal exemption for married taxpayers filing separately: $14 Dependents exemption: $93 Personal exemption for heads of households: $99 Limited income credits: $14 No tax status: $15
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