EARNED INCOME TAX CREDIT (EITC)
Rate (Fully-Refundable): 30% of the federal credit
Eligibility Requirements: All Massachusetts taxpayers who qualify for the federal credit are automatically eligible1.
Latest Legislative Action: In 2023, lawmakers proposed a $590 million Tax Relief bill designed to expand the EITC from 30% to 50% of the federal rate. The proposals are in committee. 2, 3
- In July 2018, Governor Charlie Baker (R) approved a state budget for Fiscal Year 2019 that includes an expansion of the Massachusetts EITC from 23 to 30 percent of the federal credit.
CHILD TAX CREDIT (CTC)
Massachusetts does not currently offer a state-level CTC.
CHILD AND DEPENDENT CARE TAX CREDIT (CDCTC)
Massachusetts does not currently offer a state-level CDCTC.
2Notes: The state does offer two similar benefits in the form of tax deductions rather than a credit. Married taxpayers filing separately are not eligible for either of the following deductions.
Child Care Expenses for Child under Age 13 or Disabled Dependent or Spouse
- Allows filers to claim a deduction for amounts paid to care for a qualifying child or a disabled dependent or spouse.
- Qualifying expenses are determined using the federal CDCTC criteria, but the deduction is not subject to the federal limits. The Massachusetts deduction is instead capped at $4,800 for one qualifying individual and $9,600 for two or more.
Dependent Member(s) of Household under Age 12, or Dependents Age 65 or Older, or Disabled Dependents Deduction
- Allows filers to claim a deduction of $3,600 per qualifying dependent living in their household, not to exceed $7,200.
- A qualifying dependent must be a household member that is either under age 12 or over age 65 at the close of the tax year.
Latest Legislative Actions: In 2023, lawmakers proposed a $590 million Tax Relief bill designed to combine the two existing dependent care deductions into one refundable state CDCTC valued at $310 per eligible child or dependent. The proposals are in committee. 2, 3
- Earned Income Tax Credit Information, Massachusetts Department of Revenue
- SB2397, The 193rd General Court of the Commonwealth of Massachusetts
- HB3770, The 193rd General Court of the Commonwealth of Massachusetts
- Child and Dependent Related Deductions Information, Massachusetts Department of Revenue