You may discover after you have filed your tax return that you forgot to include some income or take a deduction.
This economic development legislation includes an income tax deduction for those who are saving money for college. Of course, taxpayers who contribute to a Massachusetts Educational Financing Authority Fund 529 college savings plan can deduct an equal amount capped at 2000 for married couples filing a joint return. Massachusetts residents have long enjoyed the taxdeferred growth offered by 529 college savings plans and we now join a lot of states in offering an income tax deduction in years when a contribution to a Massachusetts 529 plan is made.
On top of that, generally, the way one corrects a previously filed tax return is through the filing of Form 1040X, Amended Tax Return for the year in question. So, on August 10, Governor Baker signed into law a Act Relative to Job Creation and Workforce Development. The IRS has issued the following summertime tax tips for filing an amended tax return.
Taxpayers who are currently paying for higher education may look for to first fund a 529 plan to receive the income tax deduction as long as withdrawals from the 529 plan can be taken at any time as long as they are used for qualified higher education expenses.