(WesternMass News- Reaghan Loughrey) With the new year comes new legislations, and with inflation hitting everyone’s wallet, Massachusetts will be introducing a new tax package come 2024. On Friday, Western Mass News got answers on how these new tax cuts will help those struggling here in the Baystate.
We spoke with Senator John Velis on Friday afternoon, who told us this new tax package is a step in the right direction to help combat inflation, adding that it really targets middle class individuals and families here in Massachusetts who are struggling to make ends meet.
“We tend to leave by the side of the road if you will,” Velis said, “The middle class are the people that have enough hard work and are paying their taxes and are really struggling. This tax package, I would argue, goes a long way to give them some much needed help.”
Senator John Velis told Western Mass News come 2024, we’re going to see some big tax breaks here in Massachusetts, including an increase in the child tax credit. Senator Velis explained that for years, the return for Massachusetts parents with children under 12 was $180, last year it was raised to $310, and now, come 2024 parents will receive a $440 return and according to Velis, this is the most generous child tax credit in the country.
Velis told us, “I’ve really come to appreciate, being the dad of an almost 2-year-old, just how much of a budget buster childcare is in Massachusetts. Right now, we have some of the most expensive childcare in America, the most expensive childcare in America.”
Another increase we’re going to see will be in the earned income tax credit, which will increase from 30% to 40% of the federal credit. That means those who qualify and make under a certain amount per year will see a larger rebate come tax season. For example, those who are single and make just over 46 thousand a year with 1 child should receive a credit of about $240. Where as those married filing jointly with 1 child and make over 53 thousand a year should get a tax rebate of almost $16,000.
The 2024 tax package will also double the maximum senior circuit breaker credit from $1,200 to $2,400, slash the tax rate on short-term capital gains from 12% to 8.5%.and increase the rental reduction from $3,000 to $4,000.
Senator Velis told us the biggest concern he receives from constituents is the lack of affordability here in Massachusetts, especially when it comes to housing, and he feels this larger rental reduction will help. And there’s some big legislation in the works that could take it to the next step.
It’s called the Affordable Homes Act. It was filed by Governor Maura Healey earlier this year and a hearing is set to be had on the bill in mid-January.
“I can’t stress enough how very important that is” Velis emphasized, “Massachusetts is getting to a point where there’s just no housing, but all types of housing is unaffordable.”
Senator Velis told us housing is the biggest challenge they face in the state, adding that it boils down to basic economics where demand far outweighs supply, making it difficult to find affordable housing here in the Baystate.
For a link to see if you qualify for the earned income tax credit, see the bottom of the page.
For more info CLICK HERE: https://www.mass.gov/info-details/earned-income-tax-credit-eitc