As long as you keep your total income under a certain amount in Massachusetts, your SSDI benefits aren't taxable. Your retirement benefit is subject to federal income taxes.If you are a Massachusetts resident, however, your benefit is not subject to state income taxes. The Form W-2 represents taxable and non-taxable earnings you received as an employee of the Commonwealth of Massachusetts during calendar year 2023. Information for Commonwealth of Massachusetts departments' payroll teams on all aspects of state payroll and labor cost management. Massachusetts does not tax U.S. military pensions. Veterans Administration disability compensation is also not taxed in the state. State laws may require mandatory state income tax be withheld from cash withdrawals. Most employers are required to provide Paid Family and Medical Leave to their employees who work in the state of Massachusetts. The Form W-2 represents taxable and non-taxable earnings you received as an employee of the Commonwealth of Massachusetts during calendar year 2023.
