Getting married
Your filing status is set by whether you are married on 31 December. For federal purposes, married couples choose between filing jointly and separately. Massachusetts adds a rule: from tax year 2024, couples who file jointly federally must file jointly in Massachusetts unless an exception applies.
Filing jointly generally gives the widest federal brackets and a $31,500 standard deduction for 2025. In Massachusetts, the joint personal exemption is $8,800. For very high earners, the joint Massachusetts return has only one 4% surtax threshold.
- Update names with the Social Security Administration before filing
- Update your W-4 and Massachusetts withholding
- Note that several new federal deductions (tips, overtime, seniors) require married couples to file jointly
Having or adopting a child
A new child can bring the federal child tax credit ($2,200 for 2025 and 2026, with a valid Social Security number), the Massachusetts child and family credit ($440 for each dependent under 13), a $1,000 Massachusetts dependent exemption and, possibly, head of household status for a single parent.
Children born from 2025 through 2028 who are U.S. citizens with a Social Security number are eligible for a $1,000 federal pilot contribution to a Trump account, elected on Form 4547. Massachusetts does not follow the Trump account rules.
Get the baby's Social Security number early. Both the federal child tax credit and the Trump account pilot contribution depend on it.
Buying or selling a home
Buying a home with a mortgage often makes itemizing worthwhile again for 2025 and later, now that the state and local tax cap is $40,000. Keep the closing statement: it shows items that may be deductible and establishes your cost basis for the day you sell.
Selling a home can produce a taxable gain if it exceeds the federal exclusion. In Massachusetts, any taxable gain on a home counts toward the 4% surtax threshold; DOR says there is no separate surtax exclusion for residences.
The events at a glance
| Event | Federal | Massachusetts |
|---|---|---|
| Marriage | Choose joint or separate | Must file jointly if joint federally |
| New child | $2,200 child tax credit; Trump account election | $440 credit if under 13; $1,000 dependent exemption |
| Parent moves in as a dependent | $500 credit for other dependents | $440 credit if 65 or older; $1,000 exemption |
| Buy a home | Mortgage interest and property tax may make itemizing worthwhile | No itemized deductions; rent deduction ends |
| Sell a home | Gain above the exclusion is taxable | Taxable gain counts toward the 4% surtax |
| Move in or out of Massachusetts | No change | Form 1-NR/PY; prorated exemptions |
| Turn 65 | $6,000 senior deduction (2025 to 2028) plus extra standard deduction | $700 exemption; possible circuit breaker credit |
| Retire | Pension and IRA income; Social Security may be taxable | Social Security excluded; some government pensions excluded |
| Start tip or overtime work | Possible deduction on Schedule 1-A | All taxable |
Retirement and turning 65
Retirement changes where income comes from: wages stop and pensions, IRA withdrawals and Social Security begin, often without enough withholding. Federally, the $6,000 senior deduction applies for 2025 to 2028, subject to an income phaseout. In Massachusetts, Social Security is not taxed, certain government pensions are excluded, and the $700 age-65 exemption and senior circuit breaker credit become available.
Massachusetts requires estimated payments when tax not covered by withholding is expected to exceed $400, so new retirees should check withholding on pensions and IRA distributions.
Death of a spouse
In the year a spouse dies, the surviving spouse can generally still file a joint federal return. Afterward, a surviving spouse with a dependent child may qualify as a qualifying surviving spouse federally; Massachusetts has no such status, and DOR says someone who claims it federally generally qualifies as head of household in Massachusetts.
This is a year to ask for help. There may also be a final return for the decedent, estate issues and changes to retirement accounts.
- 1.Collect the decedent's income documents for the year of death.
- 2.Notify retirement plan administrators and Social Security.
- 3.Keep records of the value of assets at the date of death.
- 4.Discuss the joint return and any estate filings with your preparer.
Where we come in
Most of these events are easier to handle if you tell us when they happen rather than in April. We prepare both returns with the event in view, and we can talk through choices, such as the timing of a home sale, before the year ends. Before we start, we give you a scope and a price in writing.
Figures on this page were checked against the IRS and Massachusetts sources listed alongside on 28 Sep 2026. They change — confirm the current amount before relying on one.
General information for owner-led businesses, not advice for your specific situation. Tax and accounting rules change, and how they apply depends on facts particular to your business. Talk to us — or to another qualified professional — before acting on anything here.
