Problems with 2006 tax return (Massachusetts), any help appreciated...?

Question

If anyone is familiar with MA tax information, your input would be appreciated. I've been filing my taxes for the past 4 years so I know how to do it. My husband hasn't, he just started doing them last year, previous years his mom claimed him. Anyhow...we can't use e-file or telefile because he doesn't have a PIN# from the previous year (H&R block doesn't give one I guess). So I'll be helping him file them this year. The only problem is I am very confused. I used several tax calculators and a couple different forms and it says we'll only be getting $419 back. How is that possible when he only made $21,179? Everyone keeps telling us we'll get at least $1,000 back. For some reason it's not working out that way. It seems MA takes out a lot of taxes and you don't get much back. When I was living in CT I made $8,000 and got $250 in return. He's only getting back $200 more and he made more than twice as much!

Also, the telefile form is the only one that asks about rent. And the 1040 and 1040A are the only two that ask about student loan interest, but we have to use 1040EZ since we're filing jointly.

Answer 1

You most certainly can e-file your return. If you want to electronically sign your return, all you need is last year's AGI and a self-selected PIN. As long as the PIN does not include all zeros, you can use any 5-digit number you want.
If you don't have last year's AGI available you can still e-file, you'll just need to sign and mail, form 8453-OL (Return Authorization Form).
The PIN for state filing would've been on the the Telefile Tax booklet you got in the mail. If you didn't get the booklet you can still telefile as you'll only need your '05 refund or amount due. Even if you never filed a return before, you can still use it.
As far as the federal forms go, you can use any 1040 form you want. Each 1040 form has a different uses but each one has the Married Filing Jointly filing status. Even though you have no dependents, you have student loan interest, and since part of that is deductible, the 1040A form would be beneficial to you.
Rent is not usually considered deductible on the federa level. There are circumstances that allow it, but not for normal living arrangements. Massachusetts allows your rent as a deductible from your state taxes.
You hardly ever get a large refund from state. Deduction rates are smaller and taxes higher.
The Massachusetts' telefile form does have lines for rent (11) and student loan interest (12b).

He should definitely get back more than $419 (state or federal)

I think you need to double check your figures and see if you might have left out anything or you're using the correct filing status.

Answer 2

I'm an accountant and I live in Massachusetts. The amount of money you get back, or have to pay, all depends on how much state income tax was withheld during the year. Massachusetts state income tax rate is 5.3% on all income. You get a deduction for social security (FICA) taxes, up to $2,000 and you get a personal expemption of $2,200 for each of you. If you want more of a refund next year, you should increase your withholdings. Also, the rental deduction is on Line 14 of Massachusetts Form 1.
Your filing status has nothing to do with what form you can use. If you're filing married filing jointly, you can file Form 1040. But if you don't itemize your deductions 1040EZ would be easier because you could take the standard deduction.