Lee Ann Nault, CPA

12/16/2025

The threshold to issue 1099's is increasing from $600 to $2,000 in 2026. Unfortunately, we still have to issue them for 2025. That will eliminate lots of hassle for small businesses. 😀

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02/24/2025

Did you know the state of MA will fund your newborns 529 Plan for $50 within the first year of birth if you open an account? This is a great incentive.
https://www.mass.gov/info-details/about-the-babysteps-savings-plan #:~:text=Any%20child%20who%20is%20a,that%20child%20as%20the%20Beneficiary.

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02/15/2024

Charitable Donations have not been deductable for many of us for a while now due to the federal threshold, but, the state of MA, beginning in 2023, now allows for charitable donations. Do not forget to include them on your taxes. Donations of household goods and clothing are not deductable but cash/checks type donations ARE in the state of MA. Keep your receipts!

WORKING DRAFT REGULATION 830 CMR: DEPARTMENT OF REVENUE830 62.00: INCOME TAX830 CMR 62.3.2: Charitable Contribution Deduction

02/12/2024

Have you heard of the Rule of 55 regarding retirement plan distributions penalty free at age 55 (some even 50) if you separate from that job? There are some rules to it so read carefully!

https://www.bankrate.com/retirement/rule-of-55/ #:~:text=However%2C%20the%20IRS%20rule%20of,rate%20of%2020%20percent%2C%20however.

10/18/2023

The state of MA has passed MA first tax cuts in more than 20 years. Some are considerable! Have a read, many of us will be feeling some savings. The link https://www.mass.gov/news/governor-healey-signs-first-tax-cuts-in-more-than-20-years #:~:text=Provisions%20of%20the%20tax%20cuts,permanent%20basis%2C%20starting%20in%202024. has all the details but the guts of it are below:

Provisions of the tax cuts package include:

Child and Family Tax Credit – Eliminates two-dependent cap and increases credit from $180 per dependent child, disabled adult, or senior to $310 for 2023 and to $440 on a permanent basis, starting in 2024. An estimated 565,000 families will benefit, and this will be the most generous universal child and dependent tax credit in the county.

Earned Income Tax Credit (EITC) – increases credit from 30% to 40% of the federal credit

Estate Tax – increases threshold from $1 million to $2 million with a credit that mitigates cliff effect

Short-Term Capital Gains – reduces rate from 12% to 8.5%

Rental Deduction – increases cap from $3,000 to $4,000

Senior Circuit Breaker Tax Credit – doubles credit, indexed to inflation, which equates to an increase from $1,200 to $2,400

Single Sales Factor – shifts from three-factor apportionment system based on business’s share of sales, payroll, and property to apportionment based solely on sales

Low-Income Housing Tax Credit (LIHTC) – increases annual program cap from $40 million to $60 million

Housing Development Incentive Program (HDIP) – increases annual program cap from $10 million to $57 million in 2023, and thereafter to $30 million annually
Student Loan Repayment Assistance – exempts employer assistance for student loan repayment from taxable income

Dairy Tax Credit – increases annual program cap from $6 million to $8 million

Cider Tax Rate – applies lower tax rates to a broadened class of beverages

Lead Paint Abatement Credit – doubles credit to $3,000 for full abatement and $1,000 for partial abatement

Title V (Septic) Tax Credit – triples maximum credit to $18,000, increases percentage of eligible expenses from 40% to 60%; and allows taxpayers to claim up to $4,000 in any year, versus $1,500 in current law

Deductible Commuter Transit Benefits – adds public transit fares, RTA fares and bicycle expenses to deductible commuter expenses

Apprenticeship Tax Credit – expands eligible occupations

Municipal Affordable Housing Property Tax Exemption – permits municipalities to adopt local property tax exemption for affordable real estate

Property Tax Liability Reduction for Senior Volunteer Services – permits municipalities to increase the maximum property tax abatement available to seniors who perform volunteer services from $1,500 to $2,000

Stabilization Fund Cap – increases the cap on Stabilization Fund deposit from 15% to 25.5% of budgeted revenues

02/02/2023

Frequently asked questions about energy efficient home improvements and residential clean energy property credits — Energy Efficient Home Improvement Credit: Qualifying Expenditures and Credit Amount

02/02/2023

The tax energy credits have been very small in recent past ( except solar ), but beginning THIS YEAR, 2023, it has doubled to quadrupled for things such as windows, doors, central air, heat pumps, insulation etc.. from 2022.

Take a peek here for what is eligible for the tax credit this year and how much. ( credit = $1 for $1 - so a $1,200 tax CREDIT means you get back $1200 more, unlike a deduction. Deduction = tax saved on deduction amount so a $1200 deduction would save you only $240 in taxes, but a $1200 credit saves you $1200 in taxes) Credits are MUCH better than deductions, in majority of cases. Take a look

Frequently asked questions about energy efficient home improvements and residential clean energy property credits — Energy Efficient Home Improvement Credit: Qualifying Expenditures and Credit Amount

12/06/2022

I am taking a three day Tax Update Course and one of the big changes coming to 2023, yes 2023 not 2022, is the increased energy credit for new windows, doors, furnace, electrical panel, heat pump and heat pump water heaters. It used to be a $500 lifetime total credit and primary residences only. Now they range from $300-$2000 PER YEAR - and Second homes are also eligible. Also, there is a $150 tax Credit for a home energy audit. You may want to pause those projects you're in the midst of now for 2022 now and wait for Jan 2023 to get those increased credits. CREDITS are much better than "deductions", Credits are dollar for dollar - so a $1000 credit means you get $1000. For more information on this and other changes look here:

The Inflation Reduction Act, which includes expanded or extended tax credits and additional funding for the IRS, was signed into law on August 16, 2022

10/27/2022

! About 70 million Americans will get a 8.7% increase in monthly benefits and payments in 2023. Check our blog for more information: http://ow.ly/2fpA50L93lU

09/29/2022

Florida residents:

Entire Florida state is declared a disaster area; 9/30 and 10/17 work is extended until Feb 15 2023

This is per IRS IR-2022-168 released 9/29/2022. It is not yet on their webpage but is an e-alert email to professionals.

09/18/2022

https://www.cbsnews.com/boston/news/massachusetts-state-tax-refund-calculator-taxpayer-rebate-2021-taxes/?fbclid=IwAR1e_yGTs_EB8-BjcrNJF_Hrg3IcqFTz5_GI0MWvk6HSZXWwnCXVcCjpxXQ

Massachusetts taxpayers will get about 13% of their 2021 state income taxes returned in November.

09/17/2022

A grant of up to $50,000 for eligible first time home buyers. Have a read!

Attleboro, Barnstable, Boston, Brockton, Chelsea, Chicopee, Everett, Fall River, Fitchburg, Framingham, Haverhill, Holyoke, Lawrence, Leominster, Lowell, Lynn, Malden, Methuen, New Bedford, Peabody, Pittsfield, Quincy, Randolph, Revere, Salem, Springfield, Taunton, Westfield, and Worcester.