What Are the Fees and Requirements to E-File in MA?
Learn about the costs, eligibility, and key requirements for e-filing in Massachusetts, including payment options and important deadlines.
Filing taxes electronically in Massachusetts is a convenient way to submit returns, often resulting in faster processing than paper filing. The state offers an e-filing system for individuals and businesses, but taxpayers should be aware of specific fees and requirements.
Eligibility to E-file
Most Massachusetts taxpayers can file electronically, but eligibility depends on income type, filing status, and return complexity. Those with straightforward tax situations, such as reporting only W-2 wages and taking the standard deduction, typically have no issues. More complex returns, including self-employed individuals or those with multiple income sources, may require specific e-filing software.
Some taxpayers must e-file. Paid tax preparers submitting more than 10 returns annually are required to do so, as are businesses with an annual tax liability exceeding $5,000. Noncompliance can result in penalties.
Free e-filing options are available through the IRS Free File program for those meeting income limits. Massachusetts also collaborates with certain tax software providers to offer free filing for low-income individuals. Taxpayers who don’t qualify must use commercial tax software or a professional preparer.
Fees and Payment Options
Massachusetts does not charge a fee for e-filing state tax returns, but costs arise depending on the filing method. Commercial tax software and professional preparers charge varying fees, with TurboTax, H&R Block, and TaxAct ranging from $25 to over $100, depending on return complexity and additional services. Some providers bundle state and federal filing fees, while others charge separately.
For those owing taxes, Massachusetts offers multiple electronic payment options. Direct debit allows automatic bank withdrawals at no extra cost. Credit and debit card payments incur processing fees—2.35% for credit cards (minimum $1.00) and a flat $3.95 for debit cards.
Businesses or individuals making large payments can use Electronic Funds Transfer (EFT) through MassTaxConnect, which allows scheduling and tracking payments. Traditional payment methods, such as check or money order, are still accepted but require a payment voucher (Form PV).
Common Documents Needed
Having the necessary documents ready ensures accuracy and prevents delays. Taxpayers must provide personal identification details, including their Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN), and those of any dependents. Some tax software may also request a driver’s license or state-issued ID for verification.
Income-related documents are essential. Employees need W-2 forms from each employer. Freelancers, independent contractors, and gig workers should have 1099-NEC or 1099-K forms. Investment income is reported on 1099-DIV and 1099-B forms, while interest income appears on a 1099-INT. Those receiving unemployment benefits need a 1099-G, and Social Security recipients must reference their SSA-1099. Rental property owners should compile records of rental income and deductible expenses.
Deductions and credits require additional documentation. Homeowners should obtain a 1098 form for mortgage interest. Students or parents claiming education credits need Form 1098-T. Massachusetts offers state-specific tax credits, such as the Circuit Breaker Credit for eligible seniors with high property taxes, requiring property tax and utility payment records. Childcare expenses require receipts and the provider’s tax identification number. Medical expenses exceeding a certain percentage of adjusted gross income (AGI) may also be deductible, requiring detailed payment records.
Filing Deadlines
Massachusetts generally follows the federal tax filing deadline of April 15, unless it falls on a weekend or holiday, in which case it moves to the next business day. This applies to individual income tax returns (Form 1) and fiduciary returns (Form 2). Taxpayers needing more time can request a six-month extension to October 15. However, this extension only applies to filing—not to paying any taxes owed. To avoid penalties and interest, any balance due must still be paid by the original April deadline.
Businesses have different deadlines based on entity type. Corporate excise tax returns (Form 355 for C-corporations and Form 3 for partnerships) are due on the 15th day of the fourth month after the tax year ends, typically April 15 for calendar-year filers. S-corporations (Form 355S) and LLCs classified as partnerships must file by the 15th day of the third month, or March 15 for most taxpayers. Quarterly estimated tax payments are required for corporations and individuals expecting to owe more than $400 in state taxes, with due dates on April 15, June 15, September 15, and January 15 of the following year.