Massachusetts Tax Notice: $6,423 Unemployment & $1,000 Lottery Income Added to My 2024 Return - How to Respond?

I received a "Notice of Change in Tax Return" from the Massachusetts Department of Revenue for my 2024 tax return. The notice has "THIS IS NOT A BILL" right at the top in bold, and explains that they adjusted my Personal Income Tax Return for the tax period December 31, 2024. According to the notice, the Department of Revenue made several specific adjustments to my return: - They added $6,423.00 in unemployment compensation on line 8a - They added $1,000.00 in Massachusetts state lottery winnings on line 8b - These changes caused my income tax after credits, contributions, use tax and HC penalty (line 37) to increase to $1,692.00 The notice explicitly states "Return Adjustment Reasons: Total Income Tax has increased" and shows these specific line item adjustments with the adjusted amounts. The notice instructs me to "Review the changes by comparing the adjustment(s) shown above to your original return." It then provides two options: 1. If I agree with the adjusted amounts, no further action is required at this time. It mentions "If you owe tax, we'll send you a bill called a Notice of Assessment. You may pay online at mass.gov/masstaxconnect before you receive the Notice of Assessment." 2. If I disagree with the adjustments to my original return and believe my original return was correct, I can respond online. They provide specific instructions: "Visit mass.gov/masstaxconnect, go to Quick Links, click on 'Submit documentation' and enter the Letter ID from the upper right-hand corner of this notice. Then attach a statement explaining your position along with any supporting documentation." The notice also explains what happens if I don't respond: "If you don't respond, we'll assume you agree with the information in this notice." It warns that "If there is a balance due, you'll receive a Notice of Assessment. Additional interest and penalty charges will accrue until the total amount owed is paid." It's signed by Commissioner Geoffrey E. Snyder. I'm not sure what this means or what I should do. I don't recall having unemployment income or lottery winnings. Can someone who actually knows explain this to me? No guessing please.

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14 comments

Daniela Rossi

•10M

The Massachusetts DOR has identified two sources of unreported income on your 2024 tax return: $6,423 in unemployment compensation and $1,000 in state lottery winnings. These adjustments have resulted in a recalculated tax liability of $1,692 on line 37 (income tax after credits, contributions, use tax and HC penalty). The notice serves as an official notification of these changes but is explicitly marked "THIS IS NOT A BILL." You have two distinct options: 1. If you agree these income sources were omitted: Simply wait for the Notice of Assessment (the actual bill). You can proactively pay through mass.gov/masstaxconnect before receiving the assessment to minimize additional interest and penalties. 2. If you disagree: You must provide documentation supporting your original return through MassTaxConnect. This requires using the Letter ID from the notice and submitting both an explanation and supporting documentation through their online portal. Be aware that inaction is considered acceptance of these adjustments. If you owe money, interest and penalties will continue to accrue until paid. Commissioner Geoffrey E. Snyder's office will automatically proceed with the assessment if no response is received.

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Freya Andersen

•21d

Sophie, this is actually pretty straightforward - Massachusetts has records of income paid to your SSN that wasn't reported on your return. The $6,423 unemployment likely came from a 1099-G form you may not have received or missed, and the $1,000 lottery winnings would be from a W2-G form (casinos/lottery must report winnings over $600). First step: Log into mass.gov/masstaxconnect and pull your original return to see what you actually filed. Compare it line by line with what they're showing. If you genuinely didn't receive this income, you'll need to dispute it with documentation. But if you did receive it and just forgot to include it, it's better to accept the adjustment rather than rack up more penalties. The key thing is they're not billing you yet - this is just notification. But don't ignore it because silence = agreement in their eyes.

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