it depends. Since the Massachusetts income threshold is different from the federal income threshold, some taxpayers may be eligible for a deduction on their federal tax return but not on their Massachusetts tax return. You may check the chart below, if you qualify the exclusion.
Income limits based on 200% of the federal poverty level.
# Persons 200% of the Federal Poverty Level
1 $25,520
2 $34, 480
3 $43,440
4 $52,400
5 $61,360
6 $70,320
7 $79,280
8 $88,240
For households with more than 8 persons, add $8,960 fo reach additional person.
As a result of a recent state law change, taxpayers with household income not more than 200% of the federal poverty level may deduct up to $10,200 of unemployment benefits from their taxable income on their 2020 and 2021 tax returns for each eligible individual. Federal law allows a deduction of up to $10,200 if the taxpayer’s federal adjusted gross income is less than $150,000.
If you already filed your return, don't amend your 2020 return. DOR will send a communication to all taxpayers who previously filed a 2020 income tax return reporting unemployment income and will adjust tax returns automatically for most taxpayers who meet the criteria for the unemployment deduction
