New changes to Massachusetts tax law are going into effect in 2025, including the full realization of an expanded tax credit first signed by the governor in 2023. As part of the $1 billion tax package Gov. Maura Healey signed into law, parents of children or caretakers for disabled adults or seniors have access to what officials called the most generous Child and Family Tax Credit in the country. The bill first increased the credit for what taxpayers could claim on their 2023 taxes from $180 to $310.  [more]

Tax reform is coming, but no one knows the exact shape it will take. At least three possible agendas are on tap: tax cuts, relief of administrative and compliance burdens, and deficit reduction. Of course, equity considerations are also on the agenda of many policymakers. In most instances, proposed tax reform measures address only one of the agenda items. For example, eliminating taxes on tip income constitutes a tax cut, and increasing the tax rate on income earned by millionaires targets deficit reduction. Few tax reform proposals currently on the table can multitask.  [more]

Here’s something you probably don’t want to hear: You’re likely doing your Roth conversions wrong. Most people take an all-or-nothing approach. Either they convert all their money at once in one big, painful swoop — triggering a hefty tax bill — or they skip conversions altogether and end up paying more in taxes over the long term. But if you take a more gradual, strategic approach, Roth conversions can become a powerful way to manage your tax burden over time, especially in retirement. [more]

As a tax supervisor at MP CPAs, one of the most challenging areas I help clients navigate is global tax compliance. For high-net-worth individuals and businesses with international holdings, understanding and adhering to U.S. foreign tax reporting requirements is not just complicated—it’s essential to avoiding costly penalties and legal risks. On a recent episode of the Knowing What Counts podcast, I had the opportunity to dive into this topic and share some of the most critical aspects U.S. taxpayers need to understand when dealing with foreign financial interests. The first thing I always explain is that the United States follows a global income taxation model. That means if you're a U.S. citizen or resident, you're required to report and pay taxes on all income. [more]