2024 is here, and tax relief with it

By A new year is here and, like it or not, the countdown to tax day is not far off. In October, Gov. Maura Healey designed to benefit renters, caregivers, and seniors. The law went into effect when it was signed, but with residents poised to begin filing in the coming weeks and months, here is a refresher on some of the and who they will affect.

Two existing tax credits for child care and dependent care are set to be combined into one, a move that will help ease the burden on both parents and caretakers for disabled adults and seniors. Taxpayers will be able to claim $310 per dependent in the first year, up from $180. In the second year of implementation, the credit will increase to $440.

Healey’s office says this will be “the most generous universal child and dependent tax credit in the country.” It will impact an estimated 565,000 families throughout Massachusetts. For renters in previous years, the cap on how much could be deducted from rent payments was half of rent paid for the year or $3,000, whichever is lower.

The new law increases this cap to $4,000. Low and middle income seniors who rent or own a home stand to benefit. Individual seniors who make less than $80,000 or couples that make less than $96,000 could get a $2,400 tax credit. This is double the previous credit, which was $1,200. Low income earners will now be able to receive 40% of the federal earned income tax credit, up from 30%.

Deductible commuter expenses are being expanded. In past years, commuters who paid tolls or bought MBTA passes were the only ones eligible. Now, all public transit fares, ferry and regional transit passes and bike commuter expenses are eligible. Massachusetts previously had the lowest threshold at which an estate would be impacted by the state’s tax, $1 million.

Now, that threshold is increasing to $2 million. A credit of just under $100,000 will be offered to eliminate a “cliff effect,” which results in an entire estate being taxed when it hits the threshold. Stay up to date on all the latest news from Boston.com Be civil. Be kind..