MASSACHUSETTS SPECIFIC TAX ITEMS (3)
For the past couple of days we've been talking about tax savings tips for your Massachusetts tax return. Are you listening to this while commuting down the pike into Boston? If so, there is a Massachusetts deduction that is available to you. You can deduct up to $750 of the tolls that you pay through a fast lane account or up to $750 for MBTA transit or commuter rail weekly or monthly passes. Are you a college student who is listening to this while you're cramming for that test later today? If so, you're entitled to a deduction for tuition payments that exceed 25% of your Massachusetts adjusted gross income. And if you pay undergraduate student loans, you are able to deduct all your interest paid even if you lose the Federal deduction due to income phase-outs or if your interest expense exceeds the Federal limit of $2,500.