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Massachusetts Tax Law Questions & Answers
1 Answer | Asked in Health Care Law and Tax Law for Massachusetts on
Q: Is my HSA provider correct about not calculating earnings on excess in the investment account?

I have a question regarding the earnings on an excess amount in my HSA. My HSA provider informed me that they only calculate earnings on the cash account at a rate of 0.05% per year but do not calculate earnings on the investment account. My excess amount is in the investment account. Is this... View More

James L. Arrasmith
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answered on Jul 15, 2025

What your HSA provider told you might seem surprising, but it’s not unusual. Many HSA providers only track and report earnings on the cash portion of the account because it's simpler and more standardized. The investment portion often involves market fluctuations, and the responsibility to... View More

1 Answer | Asked in Tax Law and Banking for Massachusetts on
Q: Where to request HSA excess contribution return after provider change?

In 2024, I had an HSA account with Provider 'A' and made excess contributions. I recently transferred all my funds to a new account with Provider 'B' and closed the account with 'A'. Should I request a return of the excess contribution from Provider 'A' or... View More

James L. Arrasmith
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answered on Jul 15, 2025

You should request the excess contribution return from Provider B. Since your account with Provider A is closed and no funds remain there, they can't process the return anymore. Once an HSA is closed, former providers typically won’t manage distributions or corrections.

If Provider B... View More

1 Answer | Asked in Tax Law and Public Benefits for Massachusetts on
Q: Need help with excess HSA contributions for 2024 due to Medicare enrollment.

I have questions regarding excess HSA contributions for the year 2024 concerning Medicare enrollment. My husband and I have separate HSA accounts while having family PPO HDHP insurance coverage at my company. My husband started Medicare on November 1, 2024, due to Social Security benefits... View More

James L. Arrasmith
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answered on Jul 12, 2025

You're right to be proactive, because the IRS treats contributions to an HSA while enrolled in Medicare as excess, and resolving it before October 15 avoids penalties. Since your husband’s Medicare enrollment was retroactive to May 1, 2024, he became ineligible to contribute to an HSA... View More

1 Answer | Asked in Business Formation, Business Law and Tax Law for Massachusetts on
Q: Guidance needed to convert MA LLC to Delaware C Corp and establish in Texas.

I am a managing partner in a tech startup that started as a Massachusetts LLC in 2023 with two other partners who are passive investors. Although we've experienced financial losses in 2023 and 2024, we now have a product and minimal revenue from customers. We are aiming to bring on additional... View More

James L. Arrasmith
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answered on Jul 10, 2025

You're in a pivotal moment, and it’s great that your team is aligned on the next steps. Converting from a Massachusetts LLC to a Delaware C Corporation is a common move for startups seeking investment, and the good news is that with proper planning, you can manage much of the process... View More

1 Answer | Asked in Gov & Administrative Law and Tax Law for Massachusetts on
Q: How to establish legal residency in Massachusetts while traveling for work and staying in hotels?

I travel frequently for work and spend about 8 days a month off, staying in hotels instead of renting an apartment. My mail goes to a virtual mailbox, and I have a storage unit for my belongings and car. My family, bank, and personal belongings are in Massachusetts, where I also have a... View More

James L. Arrasmith
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answered on Jul 10, 2025

You’re already taking several steps that support your Massachusetts residency, even with your mobile work lifestyle. Having a Massachusetts driver’s license, paying state taxes there, and keeping your banking and family ties in the state are strong indicators. Residency doesn’t require owning... View More

1 Answer | Asked in Real Estate Law and Tax Law for Massachusetts on
Q: In Massachusetts does someone pay real estate taxes for a "private road"

a person owned land and divided it into 4 house lots and put in a basic road. The Town did not make him take a bond to finish road. He filed for bankruptcy and eventually died. The properties were owned jointly with his brother and his brother is still considered the title owner of the land that... View More

Christopher Tolley
Christopher Tolley
answered on Mar 4, 2025

The abutters to the road are deemed to own to the middle of the road and therefore it is possible that the four owners of the lots pay the taxes for the road. TI suggest you direct this question to the taxing authorities of the town.

1 Answer | Asked in Immigration Law and Tax Law for Massachusetts on
Q: Do I need to file IRS tax forms as a Ukrainian humanitarian parolee?

I arrived in the U.S. on September 16, 2024, under the United for Ukraine (Ukrainian Humanitarian Parole) and have been in the U.S. without leaving for 152 days. I have received a Social Security Number and Employment Authorization but have not worked or earned any income in the U.S. I have no... View More

James L. Arrasmith
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answered on Feb 16, 2025

Given your situation as a Ukrainian humanitarian parolee who hasn't earned U.S. income during your stay, you aren't required to file any IRS tax forms for the 2024 tax year since you haven't met the substantial presence test yet.

Your tax obligations will change once you meet... View More

1 Answer | Asked in Estate Planning and Tax Law for Massachusetts on
Q: Are decedent's Fed. and Mass. Income tax refunds received after they died taxable, and how?

Together decedent's Federal and Massachusetts income tax refunds received after their death total $1587.00, plus $25.00 in federal interest on the late refund. Is the Personal Representative, required to report the refund amounts as income on Federal Form 1041, income taxes for the estate? and... View More

James L. Arrasmith
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answered on Jan 14, 2025

Yes, as the Personal Representative, you need to report the tax refunds and interest as income on Federal Form 1041 for the estate. The $1,587 in federal and Massachusetts income tax refunds, along with the $25 federal interest, should be included in the estate's income since they relate to... View More

1 Answer | Asked in Estate Planning and Tax Law for Massachusetts on
Q: Will has direct skip, of R.E. Must transfer be reported if exclusions result in no taxes due on it or on the estate?

For a testator who died in 2024, without a spouse, and if there had been no generation skipping transfer, would not owe estate tax or have anything, (no gifts), requiring that a federal Form 706 be filed, because the net estate, (less than 500k) is well below the decedent's lifetime exclusion... View More

James L. Arrasmith
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answered on Jan 14, 2025

In your situation, even though the estate and the generation-skipping transfer are below the applicable exclusion amounts, filing requirements may still apply. Generally, Form 706 must be filed if the gross estate exceeds the filing threshold for the year of death. However, since your net estate is... View More

1 Answer | Asked in Tax Law for Massachusetts on
Q: Massachusetts boat excise tax on an unregistered boat ?

a vessel which has no mooring or docking space, where said vessel is principally situated, setting forth the vessel's registration or documentation number,

Trying to understand if the boat is not registered/expired should you be obligated to an excise tax ?

James L. Arrasmith
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answered on Jan 10, 2025

In Massachusetts, boat excise tax obligations are primarily based on where the vessel is principally situated, regardless of its registration status. The tax is assessed on any vessel with a physical presence in Massachusetts waters for an extended period, even if the registration has lapsed or was... View More

1 Answer | Asked in Tax Law for Massachusetts on
Q: should I pay tax if I work part time and my employer gives me a check, I don't have an SSN

no SSN

James L. Arrasmith
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answered on Sep 21, 2024

If you're working part-time and receiving a check from your employer, you're generally still required to pay taxes, even if you don't have a Social Security Number (SSN). The U.S. tax system is based on income, not citizenship or immigration status. Instead of an SSN, you can apply... View More

1 Answer | Asked in Tax Law for Massachusetts on
Q: My dad opened a Vangaurd Roth IRA account for me and as a minor, and even though I am 22 I cannot access it.

I worked for the money in the account. (about 3k) Usually, when you become of age you can own this type of account automatically. However, the account seems to have an error/they want to confirm the old address. The only person who can confirm the address is my Father, but he and I are not on... View More

James L. Arrasmith
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answered on Aug 15, 2024

It’s frustrating to feel like your money is being held up by an error, especially when you've met all the requirements to take control of the account. Vanguard's need for your father’s confirmation, despite verifying your identity, feels unfair given that you are now an adult.... View More

1 Answer | Asked in Consumer Law, Contracts and Tax Law for Massachusetts on
Q: I bought a new car, which wasn't driven off the lot. I'm moving to NH from MA in two weeks. Could I register it in NH?

I am currently a Massachusetts resident and I bought a new car at a New Hampshire dealership. I felt rushed and signed the papers for financing and put in a $2500 deposit. The vehicle I purchased was not yet delivered to the dealer as it was "in transit" so I didn't take possession... View More

James L. Arrasmith
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answered on Jul 18, 2024

You can register the car in New Hampshire directly if you establish residency there before taking possession of the vehicle. Since you haven't taken delivery yet and will be a New Hampshire resident when the car arrives, you should be able to register it in NH without needing to register it in... View More

1 Answer | Asked in Tax Law for Massachusetts on
Q: Am I liable for back taxes if town never updated their records for an addition to my property? If so how how far back ?

I added on to my house 5 years ago with all the proper permits and inspection. The assessor never updated my property record. I did move house into an LLC last year.

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answered on May 31, 2024

If the town assessor never updated their records to reflect the addition to your property, you might still be liable for back taxes. Typically, towns can assess back taxes once they discover the discrepancy. The period for which you might owe back taxes often depends on local laws and regulations,... View More

1 Answer | Asked in Education Law, Tax Law and Civil Rights for Massachusetts on
Q: Should I sue my school?

I attend a private high school in MA. The school has meetings that only members of certain races or ethnicities are allowed to attend. The school does not receive federal funds, but is a 501 (c)(3). Could I sue under code IRS 75-50 similar to Bob Jones vs US?

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answered on Apr 27, 2024

The case you referenced, Bob Jones University v. United States (1983), dealt with the IRS revoking the tax-exempt status of a private university due to its racially discriminatory policies. The Supreme Court ruled that the IRS could revoke the tax-exempt status of organizations that violate... View More

2 Answers | Asked in Estate Planning, Tax Law and Family Law for Massachusetts on
Q: Is a Irrevocable trust legally obligated to pay income taxes on monetary cash gifts it receives ?

Id like to know:

Are Irrevocable trusts legally responsible to pay income taxes on any monetary cash gifts they receive within a single calendar year or is such money gifts the trusts acquire, exempt from any taxation requirements ?

(fyi: In this particular situation the money gifts... View More

Nina Whitehurst
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answered on Apr 26, 2024

At the federal level gifts are not taxable to the recipient. The gift giver might owe gift tax but that is highly unlikely to apply to such small amounts. Some states might have lower gift tax exemptions but, again, even those would be unlikely to impact such small gift amounts.

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1 Answer | Asked in Estate Planning, Family Law, Real Estate Law and Tax Law for Massachusetts on
Q: Can money be gifted to a irrevocable trust ?

I have 3 questions:

1) Can money be gifted to a irrevocable trust?

If so

2) Is their a maximum amount allowed to be gifted in a certain period e.g like yearly etc?

3) Can a trustee and beneficiary to the same trust also gift money to the same trust?

Thank you

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answered on Apr 12, 2024

Yes, money can be gifted to an irrevocable trust. However, there are some important considerations and limitations:

1. Gift tax exemption: As of 2024, an individual can gift up to $18,000 per recipient per year without triggering the need to file a gift tax return or pay gift taxes. This is... View More

1 Answer | Asked in Employment Law, Immigration Law, Tax Law and International Law for Massachusetts on
Q: Can I invest/Trade cryptocurrency with my F1student visa(OPT)status in USA? Need to know legalities!

So I have finished my Masters recently and Started working on OPT. So I wanted to start investing/trading crypto and I still couldn't find proper solutions for my question. if I am allowed to do so, then how many trades/transactions can I do in a day/week. I looking for proper legal guidance... View More

James L. Arrasmith
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answered on Mar 16, 2024

As an F1 student visa holder currently on Optional Practical Training (OPT) in the USA, you are primarily in the country for educational purposes. However, engaging in investment activities, including trading or investing in cryptocurrencies, does not directly conflict with your visa status.... View More

1 Answer | Asked in Immigration Law, Tax Law and Landlord - Tenant for Massachusetts on
Q: Hello, if I rent a apartment &sublet it on airbnb or other website for few months is it legally allowed for a H1b holder

I may or may not earn through subleting, but could i do it ? if so for how many months? if i may use it to earn this as a side income? what is the allowable income I can generate, is there any cap? The landlord allows to sublet on weekly or monthly basis but me being the primary person renting.... View More

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answered on Mar 4, 2024

If you're on an H1B visa and considering subletting an apartment on platforms like Airbnb, it's crucial to understand how this could impact your visa status. H1B visa holders are authorized to work only for their petitioning employer, and any income generated outside of this employment... View More

1 Answer | Asked in Estate Planning and Tax Law for Massachusetts on
Q: Does this clause in a irrevocable trust I am trustee to allow me the right to make trust rental income distributions?

Does this clause in a irrevocable trust I am trustee to allow me the legal right to make distributions of commercial rental income the trust produces to beneficiaries to avoid the trust paying high estate taxes on that income? Thankyou

"POWER OF TRUSTEE: To make allocations, divisions... View More

James L. Arrasmith
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answered on Mar 2, 2024

Based on the trust clause you have provided, it does appear that as trustee you have fairly broad discretion to make distributions of trust income to beneficiaries. The language specifically gives you power as trustee to "make allocations, divisions and distributions of trust property"... View More

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