New MA Laws For 2024 Include Tax Cuts, Dental Insurance Reform

MASSACHUSETTS — New Massachusetts laws expanding child and dependent tax credits, as well as the dental insurance reform that passed a voter ballot initiative this past fall, are among the law changes set to take effect as of Monday for 2024.

The state tax relief plan includes $1 billion in tax credits and was signed into law by Gov. Maura Healey this past fall after an extensive Beacon Hill debate.

The tax changes also decrease the estate tax and increase the earned income tax credit.

The dependent tax allowance will increase from $180 to $310 per dependent for 2023 taxes filed in 2024, and then $440 for 2024 and beyond.

The estate tax will be eliminated for all estates valued at under $2 million. Currently, the threshold is $1 million.

The earned income tax credit will increase from 30 to 40 percent of the federal credit. The senior circuit breaker credit will increase from $1,200 to $2,400. The maximum rental deduction will increase from $3,000 to $4,000.

The tax rate on short-term capital gains will decrease from 12 percent to 8.5 percent.

Some public transit, regional transit and bicycle commuting expenses will become deductible in 2024.

The new bill amends a section of state law that grants a $750 tax deduction to drivers who use
E-ZPass, people who buy monthly or weekly MBTA passes and ferry commuters to include all transit authority fares — including regional bus networks — bikeshare memberships and costs related to commuting by bike or electric bike.

The maximum $750 deduction applies to any costs above $150 for either single or married taxpayers and also includes expenses related to repairing or storing bicycles.

Married taxpayers who file a joint return federally will now have to do so on their state taxes as well.

The dental insurance reform passed by voters in November will mandate that carriers spend at least 83 percent of revenues on members' dental expenses and quality-assurance costs while reducing the amount that insurance companies can spend on administrative costs.

See Also:

• Massachusetts Year In Food 2023
• MA’s Best Hospitals For 2023: See Full List
• Richest People In MA, State's Top Businesses: See 2023 Details

(Scott Souza is a Patch field editor covering Beverly, Danvers, Marblehead, Peabody, Salem and Swampscott. He can be reached at Scott.Souza@Patch.com. Twitter: @Scott_Souza.)