Personal Income Tax - All Detail

Fiscal Year 2016 Personal Income Tax (in Millions)
TAX EXPENDITURE
FY2012
FY2013
FY2014
FY2015
FY2016
1.000 - Exclusions from Gross Income 3,592.5 3,844.3 3,909.2 4,072.5 4,242.6
1.100 - Deferrals of Gross Income 967.9 955.4 936.4 1,080.5 1,305.6
1.200 - Deductions from Gross Income 0.1 0.1 0.1 0.1 0.1
1.300 - Accelerated Deductions from Gross Income 105.1 102.5 107.8 105.8 104.8
1.400 - Deductions from Adjusted Gross Income 810.1 840.0 855.8 870.1 886.6
1.500 - Preferential Rate of Taxation 0.0 0.1 0.7 2.3 2.3
1.600 - Credits Against Tax 217.9 229.6 249.0 255.8 263.7

 

Fiscal Year 2016 Resource Summary (in Millions)
TAX EXPENDITURE FY2012 FY2013 FY2014 FY2015 FY2016
Exclusions from Gross Income 3,592.5 3,844.3 3,909.2 4,072.5 4,242.6

View tax item language

item description amount
Exclusions from Gross Income 4,242.6
1.001 Exemption of Premiums on Accident and Accidental Death Insurance 1 26.1
1.002 Exemption of Premiums on Group-Term Life Insurance 1 21.0
1.003 Exemption of Interest on Life Insurance Policy and Annuity Cash Value 216.6
1.004 Exemption of Employer Contributions for Medical Insurance Premiums and Medical Care 1 968.7
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 2 351.9
1.007 Exemption of Railroad Retirement Benefits 4.8
1.008 Exemption of Public Assistance Benefits 192.7
1.009 Exemption of Social Security Benefits 913.7
1.010 Exemption of Workers' Compensation Benefits 7.2
1.011 Exemption for Dependent Care Expenses 1 15.2
1.012 Exemption of Certain Foster Care Payments 3.0
1.013 Exemption of Payments Made to Coal Miners Negligible
1.014 Exemption of Rental Value of Parsonages 1 2.8
1.015 Exemption of Scholarships and Fellowships 21.6
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 13.1
1.019 Treatment of Business-Related Entertainment Expenses 1 13.7
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 367.6
1.022 Nontaxation of Capital Gains at Death 886.8
1.023 Exemption of Interest from Massachusetts Obligations 54.5
1.024 Exemption of Benefits and Allowances to Armed Forces Personnel 1 30.5
1.025 Exemption of Veterans' Pensions, Disability Compensation and G.I. Benefits 40.3
1.026 Exemption of Military Disability Pensions 0.7
1.027 Exemption of Compensation to Massachusetts-Based Nonresident Military Personnel 9.0
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 25.2
1.030 Parking, T-Pass and Vanpool Fringe Benefits 37.3
1.031 Health Savings Accounts included in 1.422
1.032 Employer-Provided Adoption Assistance $0.0
1.033 Employer-Provided Educational Assistance 11.1
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.
1.039 Discharge of Indebtedness for Health Care Professionals Negligible
1.040 Archer Medical Savings Accounts included in 1.420
1.041 Earnings of Pre-paid and Tuition Savings ("529" plans) 7.3

 

Fiscal Year 2016 Resource Summary (in Millions)
TAX EXPENDITURE FY2012 FY2013 FY2014 FY2015 FY2016
Deferrals of Gross Income 967.9 955.4 936.4 1,080.5 1,305.6

View tax item language

item description amount
Deferrals of Gross Income 1,305.6
1.101 Net Exemption of Employer Contributions and Earnings of Private Pension Plans 2 975.8
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 2 231.4
1.106 Non-taxation of Capital Gains at the Time of Gift 98.4

 

Fiscal Year 2016 Resource Summary (in Millions)
TAX EXPENDITURE FY2012 FY2013 FY2014 FY2015 FY2016
Deductions from Gross Income 0.1 0.1 0.1 0.1 0.1

View tax item language

item description amount
Deductions from Gross Income 0.1
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 Negligible
1.204 Abandoned Building Renovation Deduction 0.1

 

Fiscal Year 2016 Resource Summary (in Millions)
TAX EXPENDITURE FY2012 FY2013 FY2014 FY2015 FY2016
Accelerated Deductions from Gross Income 105.1 102.5 107.8 105.8 104.8

View tax item language

item description amount
Accelerated Deductions from Gross Income 104.8
1.301 Modified Accelerated Depreciation on Rental Housing 23.6
1.303 Modified Accelerated Depreciation on Buildings (other than Rental Housing) 7.2
1.304 Modified Accelerated Cost Recovery System (MACRS) for Equipment 61.0
1.305 Deduction for Excess First-Year Depreciation 10.6
1.306 Election to Deduct and Amortize Business Start-up Costs 0.6
1.308 Expensing Exploration and Development Costs Negligible
1.309 Expensing Research and Experimental Expenditures in One Year 1.4
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

 

Fiscal Year 2016 Resource Summary (in Millions)
TAX EXPENDITURE FY2012 FY2013 FY2014 FY2015 FY2016
Deductions from Adjusted Gross Income 810.1 840.0 855.8 870.1 886.6

View tax item language

item description amount
Deductions from Adjusted Gross Income 886.6
1.401 Deduction for Employee Social Security and Railroad Retirement Payments 296.7
1.402 Deduction for Employee Contributions to Public Pension Plans 2 included in 1.401
1.403 Additional Exemption for the Elderly 29.4
1.404 Additional Exemption for the Blind 1.2
1.405 Dependents Exemption Where the Child Earns Income 3 N.A.
1.406 Deduction for Dependents Under 12 130.0
1.407 Personal Exemption for Students Age 19 or Over 8.7
1.408 Deduction for Adoption Fees 0.4
1.409 Deduction for Business-Related Child Care Expenses 18.3
1.410 Exemption of Medical Expenses 111.9
1.411 Rent Deduction 128.8
1.412 Nontaxation of Charitable Purpose Income of Trustees, Executors or Administrators N.A.
1.413 Exemption of Interest on Savings in Massachusetts Banks 3.7
1.414 Tuition Deduction (Over 25% of Income) 54.2
1.415 Charitable Contributions Tax Deduction Not Active
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 8.1
1.423 Commuter Deduction 8.5
1.424 Self-Employed Health Insurance Deduction 48.0
1.425 Student Loan Interest Deduction (allowed Federally or by Massachusetts) 38.7
1.426 Expenses of Human Organ Transplant 0.1

 

Fiscal Year 2016 Resource Summary (in Millions)
TAX EXPENDITURE FY2012 FY2013 FY2014 FY2015 FY2016
Preferential Rate of Taxation 0.0 0.1 0.7 2.3 2.3

View tax item language

item description amount
Preferential Rate of Taxation 2.3
1.501 Small Business Stock, Capital Gains Tax Rate 2.3

 

Fiscal Year 2016 Resource Summary (in Millions)
TAX EXPENDITURE FY2012 FY2013 FY2014 FY2015 FY2016
Credits Against Tax 217.9 229.6 249.0 255.8 263.7

View tax item language

item description amount
Credits Against Tax 263.7
1.601 Renewable Energy Source Credit 1.7
1.602 Credit for Removal of Lead Paint 2.9
1.603 EDIP/Economic Development Incentive Program Credit 3.7
1.604 Credit for Employing Former Full-Employment Program Participants Not Active
1.605 Earned Income Credit 136.3
1.606 Septic System Repair Credit 9.5
1.607 Low Income Housing Credit 1.0
1.608 Brownfields Credit 4.8
1.609 Refundable State Tax Credit Against Property Taxes for Seniors ("Circuit Breaker") 77.6
1.610 Historic Buildings Rehabilitation Credit 7.5
1.611 Film (or Motion Picture) Credit 2.1
1.613 Medical Device User Fee Credit Negligible
1.614 Dairy Farmers Credit 3.3
1.615 Conservation Land Credit 2.0
1.616 Employer Wellness Program Tax Credit 7.5
1.617 Community Investment Tax Credit 3.0
1.618 Farming and Fisheries Income Tax Credit 0.9

Key:

ORIGIN  
IRCFederal 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 FY16 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: $321 Personal exemption for married couples: $562 Personal exemption for married taxpayers filing separately: $15 Dependents exemption: $89 Personal exemption for heads of households: $103 Limited income credits: $12 No tax status: $15