Massachusetts Offers Charitable Contribution Deduction

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 or your AAFCPAs tax advisor.

About the Author

Daniel Seaman
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 of tax and wealth management expertise leads to better-informed decisions, increased tax efficiency, and an enhanced client experience—all contributing to greater success in achieving a clients' financial goals.