Massachusetts Offers Charitable Contribution Deduction

Posted on July 24, 2023June 19, 2024

As of January 1, 2023, all Massachusetts taxpayers may now deduct charitable contributions on their state return. If you cannot itemize and receive a deduction for charitable contributions on your federal return, you will still be eligible to receive a deduction on your state return. The new deduction is available for contributions made to qualifying nonprofits based in Massachusetts or out of state. Note that contributions must meet the requirements of Internal Revenue Code Section 170.

AAFCPAs has advised clients that the new charitable contribution deduction may act as an incentive to encourage giving. Taxpayers planning to claim the deduction should retain the same documentation they would were they claiming the federal deduction, such as a donation letter or receipt. Though the deduction has been postponed for several years, the Massachusetts Department of Revenue has not announced any further extension. AAFCPAs will monitor legislation and provide updates as appropriate.

If you have questions, please contact Daniel Seaman, CPA, Tax Partner at 774.512.4025 or dseaman@nullaafcpa.com or your AAFCPAs tax advisor.

AAF Wealth Management is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where AAF Wealth Management and its representatives are properly licensed or exempt from licensure. This blog is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by AAF Wealth Management unless a client service agreement is in place.

About the Author

Daniel Seaman, CPA

Dan is a leader in AAFCPAs’ Tax Practice advising select clients, including high-net-worth individuals along with their families and business interests. He works extensively with AAF Wealth Management clients, helping to ensure the seamless execution of their holistic financial plans. He navigates the intricacies of compliance, taxation, wealth optimization, asset protection & privacy. Since joining the firm in 2007, Dan has embraced AAFCPAs’ integrated service model as key to client success. He recognizes that this combination …

Related Insights

Top Takeaways From Our 2024 Tax Planning & Wealth Preservation Webinar

In this article: Strategic tax planning preserves wealth and ensures a lasting legacy. During AAFCPAs’ recent Individual/Family and Wealth Preservation webinar (October 2024), Jonathan Bloom, CFP®, AIF®, Joshua England, LLM, Esq., Richard Weiner, CPA, MST, CM&AA, Daniel Seaman, CPA, and Tyler Champagne, CPA, MSA shared wealth preservation insights including strategies to help optimize your tax […]

Estate Tax Alert: Protecting Assets from the 2026 Exemption Reduction

AAFCPAs advises clients to consider proactive strategies to shield their assets now from steep tax liabilities should the estate tax exemption be left to decrease to $7 million on January 1, 2026. Now is the time for high-net-worth individuals to consider wealth transfer and gifting strategies that can help you maintain control while also locking […]

AAF Wealth Management Q3 2024 Market Insights

AAFCPAs is pleased to share the following Q3 2024 Market Insights published by AAF Wealth Management, a subsidiary of AAFCPAs. While world markets were relatively calm, we saw a bit more volatility this quarter in the investing and political arenas. Coming out of an uneventful first half of the year, the combination of more realistic […]