Bill > S1944

This bill proposes to modify Massachusetts tax law by creating a new exemption for private pension income. Specifically, the bill allows individuals under 60 years old to exclude up to $2,000 of pension income from taxation, while individuals aged 60 and older can exclude up to $12,500 of pension income. The exemption applies to pensions from employers, the United States government, the state, or its subdivisions. Additionally, the bill broadly defines "eligible retirement income" to include distributions from qualified retirement plans, 401(k) plans, government deferred compensation plans, as well as other income sources like dividends, capital gains, interest, and rental income (minus deductible expenses). For married couples who own property jointly, retirement income will be equally split between spouses for tax purposes. This legislation aims to provide tax relief for retirees and individuals with pension or retirement income, potentially making Massachusetts more financially attractive for older residents and workers approaching retirement.

Budget and Finance

https://malegislature.gov/Bills/194/S1944