Massachusetts Form Help
The following information has been provided to assist in the preparation of Massachusetts state tax returns.
Check this box if you are a noncustodial parent. A noncustodial
parent is defined as a person who has a minor child, but does
not live with the child. NOTE: If you are the biological parent
of a child, but your parental rights have been terminated, you
are not the noncustodial parent of that child.
If you paid adoption fees to a licensed adoption agency during
2014, you are eligible for an exemption of the total amount of
the fees paid during the year. Fees paid during 2014 to an agency
licensed to place children for adoption on account of the
adoption process of a minor child regardless of whether an
adoption actually took place during 2014 should also be included
for this exemption.
Income from most private pensions or annuity plans is taxable
in Massachusetts. Certain government pensions, however, are
exempt under MA law. In general, exempt pensions include
contributory pensions from the U.S. Government or the
Commonwealth of MA and its political subdivisions, and
non contibutory military pensions.
If you are receiving distributions from an IRA or Keogh plan,
do not report the income here; instead, they should be reported
on line 9, Schedule X.
NOTE: Massachusetts does not tax Social Security income;
therefore, you should not report such income on Mass. Form 1.
Enter the total amount of interest received or credited to
deposit accounts (term and time deposits, including
certificates of deposit, savings accounts, savings shares,
and NOW accounts).
Do not subtract interest forfeited or penalties charged to you
for early savings withdrawal. These are allowed as deductions
on Sch Y, line 2. All other interest, unless exempt, should be
entered on Mass. Sch B.
This line includes the amount of income or loss from a business
or profession from Mass. Sch C, line 31 and the income or loss
from operating a farm from U.S. Sch F, line 36.
Complete the Mass. Sch E which will transfer to this line.
This line includes unemployment compensation received & reported
on U.S. Form 1040, line 19; 1040A, line 12; or 1040EZ, line 3.
This line includes Alimony Received, Taxable IRA/Keogh
Distributions and Winnings, Fees and Other 5.3% Income.
Alimony received is automatically calculated on Sch X, line 1,
and carries from the U.S. 1040, line 11.
The payer's name(s) and social security number(s) must be
entered on Schedule X, line 2, if the taxpayer received
Alimony income.
Taxable IRA/Keogh distributions are determined by entering
data on lines 2(b) and 2(c) of the Sch X worksheet.
Winnings, fees and other 5.3% income are automatically
calculated from line 21 of the U.S. 1040, line 21.
If you have paid into any of these retirement systems during
2014, you may deduct those contributions, up to a maximum of
$2,000 per spouse. Payments may not be combined or transferred
from one spouse to the other.
Payments to an IRA, Keogh, Simplified Employee Pension Plan
(SEP), or Savings Incentive Match Plan for Employees (SIMPLE)
Account are not deductible for Mass income tax purposes.
Massachusetts now allows taxpayers to exceed the Federal limit
for employment-related expenses for the care of a
qualified child under the age of 13, a disabled dependent or a
disabled spouse. The maximum deduction is $4,800 for one qualifying
individual, and $9,600 for two or more. Complete line A of the
worksheet if it applies. The deduction is automatically calculated.
If you choose to take this deduction, you cannot take the
deduction in line 13.
You may deduct $3,600 for a dependent member of your household
or $7,200 for two or more dependents, under age 12, or dependent
age 65 or over (not you or your spouse) as of December 31 of the
tax year ended, or disabled dependent. Only if single,
head of household, or married filing jointly. You may claim an
amount in line 13 only if there is no entry in line 12.
You may be entitled to a rental deduction equal to one-half
of the rent you paid during the tax year (maximum $3,000), or
($1,500) for married filing separately for your principal
residence. The deduction must be for rent you paid to a landlord
for the rental or lease of your principal residence in Mass.
If two or more people jointly rent a unit, each occupant using it
as his/her principal residence is entitled to a deduction based on
the amount of rent that each person paid. If the rent is paid by
a third party (such as parent) who maintains a principal residence
elsewhere, no 50% rental deduction is allowed for either party.
A principal residence does not include any residence for
vacation, an apartment for a person on a temporary assignment,
or a student or faculty member who has a principal residence
elsewhere. It also does not include any apartment or house in
Mass. of a nonresident who has a legal residence in another
state or country.
Payment for occupying a hotel, motel or rooming house is not
considered rent unless a rental agreement exists. All
separately stated charges such as utilities, furnishings or
parking cannot be included in rent for purposes of this
deduction. Also, rent does not include any advance payments
(such as security deposit, last month's rent, etc) until
actually applied as rent. See the worksheet to complete the
calculation for the deduction.
This line includes deductions for the following;
Employee Business Expenses, Penalty on Early Withdrawal of
Savings, Alimony Paid, Amounts Excludable Under MGL Ch 41,
Sec 111F, Student Loan Interest Deduction, Medical Savings
Account Deduction, Moving Expenses, Self Employed Health
Insurance Deduction, Miscellaneous Deductions from U.S. 1040,
line 33A, Deductible amount of Qualified Contributory Pension
Income from another State, and the College Tuition Deduction.
These deductions are shown in detail on the "Other
Deductions" Worksheet.
Employee business expense deductions are calculated from U.S.
Form 2106 except for line C of the Other Deductions worksheet.
Penalty on early withdrawal of savings calculates from the
U.S. 1040, line 32.
Alimony paid calculates from the U.S. 1040, line 33a except
for the alimony recipient's name(s).
Deductions excludable under under MGL Ch 41, Sec 111F must be
entered on line 4 of the Other Deductions Worksheet.
Student loan interest calculates from the U.S. 1040, line 25.
The medical savings account deduction calculates from the
U.S. 1040, line 27.
Moving expenses calculate from the U.S. 1040, line 28.
The self-employed health insurance deduction calculates from
the MA-1, line 15 worksheet, item 5.
The deduction for qualified contributory pension income from
another state must be entered on line 6 of the Other
Deductions worksheet.
The college tuition deduction must be entered on line 7 of the
Other Deductions worksheet. There is a worksheet on line 7
where the actual entry is done on lines 1 and 2, titled
Schedule Y, line 7 worksheet. Also, the social security
number(s) and university name(s) must be entered on the
"Other Deductions" worksheet.
The worksheet on line 27 automatically calculates to
determine if the taxpayer qualifies for either; (a) No Tax
Status or (b) The limited income credit (shown per line 28).
The following other credits are shown per Schedule Z:
Lead Paint credit, Economic Opportunity Area credit, Full
Employment credit, Septic credit, Brownsfields credits, Low
Income Housing credit, Income Tax Paid to Other State credit
and the Energy credit.
The credits for lead paint, economic opportunity area, full
employment, septic credit, Brownsfields credits, Low
Income Housing credit must be entered on the Sch Z
worksheet.
The Income Tax Paid to Other State credit is determined by
entering data on the Sch Z worksheet line 2. There is a
separate worksheet from Sch Z, line 2 which requires an
entriy on lines 1.
The Energy Credit is calculated on Sch EC.
This includes all income tax withheld for the Commonwealth of
Massachusetts as shown per Forms W-2, W-2G and 1099R. These
amounts are automatically calculated once the withholding is
entered on the W-2's and 1099R. If you have withholding on any
other 1099 for the State of Mass., enter this amount to the
left of line 35.
This amount carries from the line 63 worksheet of the U.S.
1040, titled "Amount from last year's return". The State ID
(MA) must be entered in the State column and the amount from
last years return.
This amount carries from the line 63 worksheet of the U.S.
1040. The amounts for the quarterly estimated payments must
be entered in the "State" column and the State ID (MA).
The credit allowed by Mass. is equal to 15% of the Federal
amount. This credit is automatically calculated if you
qualify for the credit federally and have entered the
childrens information and EIC checkbox on the "Client Data
Screen" of the Crosslink program.
Enter any Massachusetts state income tax payments made with
extension (per Mass. Form 4868).
Enter the amount of overpayment per line 43 you want to credit
to 2015 estimated tax.
If you want to have your refund directly deposited into your
bank account, check the checking or savings account box and
enter the routing number and account number for the financial
institution. NOTE: Check with your financial institution to
make sure that it accepts direct deposit and verify the (RTN).
If you owe more than $200 you should complete Form M-2210 to
see if you owe an underpayment penalty. If you owe a penalty
this amount will automatically transfer to line 45c.
This information can be manually entered at the bottom of
the MA-1 Long Income Tax Return or pressing F-3 will access
the paid preparer list.
Check the nonresident box if you were not a resident of Mass.
and you received Mass. source income. Mass. source income
for nonresidents include the following;
1. Any trade, business, or employment carried on in Mass.
2. Participation in any lottery or wagering transaction in MA.
3. Ownership of any interest in real or tangible property
located in Mass.
Check the part-year resident box if you were a resident of Mass.
for less than the full year and you did not receive Mass.
source income while a nonresident.
Check the box "Filing as both a part-year resident box and
non-resident" if you were a resident of Mass. for less than
the full year and you did receive Mass. source income while a
nonresident. If this filing status applies, then complete
Form R/NR and Form 1-NR/PY.
Part-year residents must enter the beginning and ending dates
they were resident of Mass. The proration will be automatically
calculated and is used to determine the portion of certain
deductions, exemptions and the earned income credit.
If you paid adoption fees to a licensed adoption agency during
2014 enter these on the worksheet.
Income from most private pensions or annuity plans is taxable
in Massachusetts. For nonresidents, any income derived from
pensions related to a Mass. trade, business or employment
is taxable unless it is derived from certain exempt pensions
as described below.
Certain government pensions are exempt under MA law. In
general, exempt pensions include contributory pensions from
the U.S. Government or the Commonwealth of MA and its political
subdivisions, and non contibutory military pensions.
If you are receiving distributions from an IRA or Keogh plan,
do not report the income here; instead, they should be reported
on line 9, Schedule X.
NOTE: Massachusetts does not tax Social Security income;
therefore, you should not report such income on Mass. Form 1-NR.
Enter the total amount of interest received or credited to
deposit accounts (term and time deposits, including
certificates of deposit, savings accounts, savings shares,
and NOW accounts).
Do not subtract interest forfeited or penalties charged to you
for early savings withdrawal. These are allowed as deductions
on Sch Y, line 2. All other interest, unless exempt, should be
entered on Mass. Sch B.
This line includes the amount of income or loss from a business
or profession from Mass. Sch C, line 31 and the income or loss
from operating a farm from U.S. Sch F, line 36.
Nonresidents should adjust amounts on the Mass. Sch C
for non MA source income. Also, Farm income (Sch F) from the Fed
return should be adjusted on line 8 if not MA. source income.
Complete the Mass. Sch E which will transfer to this line.
Nonresidents should adjust the amount from the Fed return
on the Mass. Sch E if not Mass. source income.
This line includes unemployment compensation received & reported
on U.S. Form 1040, line 19; 1040A, line 12; or 1040EZ, line 3.
Nonresidents should adjust the amount from the Federal return
on line 10 if not Mass. source income.
This line includes Alimony Received, Taxable IRA/Keogh
Distributions and Winnings, Fees and Other 5.3% Income.
Alimony received is automatically calculated on Sch X, line 1,
and carries from the U.S. 1040, line 11.
Taxable IRA/Keogh distributions are
determined by entering data on lines 2(b) & 2(c).
Winnings, fees and other 5.3% income are automatically
calculated from line 21 of the U.S. 1040, line 21.
Examples of nonresidents who must apportion income using one
of the special methods include:
1. An independent business or professional person whose
income does not depend on sales, days or mileage.
2. An entertainer or athlete whose income does not depend
solely on receipts or winnings.
3. A general or limited partner in a partnership; and
4. A shareholder of an S Corp with Mass. source income.
If you have paid into any of these retirement systems during
2014, you may deduct those contributions, up to a maximum of
$2,000 per spouse. Payments may not be combined or transferred
from one spouse to the other.
Payments to an IRA, Keogh, Simplified Employee Pension Plan
(SEP), or Savings Incentive Match Plan for Employees (SIMPLE)
Account are not deductible for Mass income tax purposes.
Massachusetts now allows taxpayers to exceed the Federal limit
for employment-related expenses for the care of a
qualified child under the age of 13, a disabled dependent or a
disabled spouse. The maximum deduction is $4,800 for one qualifying
individual, and $9,600 for two or more. Complete lines A & E of the
worksheet if it applies. The deduction is automatically calculated.
If you choose to take this deduction, you cannot take the
deduction in line 17.
You may deduct $3,600 for a dependent member of your household
or $7,200 for two or more dependents, under age 12, or dependent
age 65 or over (not you or your spouse) as of December 31 of the
tax year ended, or disabled dependent. Only if single,
head of household, or married filing jointly. You may claim an
amount in line 17 only if there is no entry in line 16.
You may be entitled to a rental deduction equal to one-half
of the rent you paid during the tax year (maximum $3,000), or
($1,500) for married filing separately for your principal
residence in Mass. If two or more people jointly rent a unit,
each occupant using it as his/her principal residence is entitled
to a deduction based on the amount of rent that each person paid.
If the rent is paid by a third party (such as parent) who
maintains a principal residence elsewhere, no 50% rental
deduction is allowed for either party. A principal residence
does not include any residence for vacation, an apartment for
a person on a temporary assignment, or a student or faculty
member who has a principal residence elsewhere. It also does
not include any apartment or house in Mass. of a nonresident
who has a legal residence in another state or country.
Payment for occupying a hotel, motel or rooming house is not
considered rent unless a rental agreement exists. All
separately stated charges such as utilities, furnishings or
parking cannot be included in rent for purposes of this
deduction. Also, rent does not include any advance payments
(such as security deposit, last month's rent, etc) until
actually applied as rent. See the worksheet to complete the
calculation for the deduction.
This line includes deductions for the following;
Employee Business Expenses, Penalty on Early Withdrawal of
Savings, Alimony Paid, Amounts Excludable Under MGL Ch 41,
Sec 111F, Student Loan Interest Deduction, Medical Savings
Account Deduction, Moving Expenses, Self Employed Health
Insurance Deduction, Miscellaneous Deductions from U.S. 1040,
line 33A, Deductible amount of Qualified Contributory Pension
Income from another State, and the College Tuition Deduction.
These deductions are shown in detail on the "Other Deductions"
Worksheet. Employee business expense deductions are calculated
from U.S. Form 2106 except for line C of the Other Deductions
worksheet. Penalty on early withdrawal of savings calculates
from the U.S. 1040, line 32. Alimony paid calculates from the
U.S. 1040, line 33a except for the alimony recipient's name(s).
Deductions excludable under under MGL Ch 41, Sec 111F must be
entered on line 4 of the Other Deductions Worksheet.
Student loan interest calculates from the U.S. 1040, line 25.
The medical savings account deduction calculates from the
U.S. 1040, line 27. Moving expenses calculate from the U.S. 1040,
line 28. The self-employed health insurance deduction calculates
from the U.S. 1040, line 30. The deduction for qualified
contributory pension income from another state must be entered on
line 6 of the Other Deductions worksheet. The college tuition
deduction must be entered on line 7 of the Other Deductions
worksheet. There is a worksheet on line 7 where the actual entry
is done on lines 1 and 2, titled Schedule Y, line 7 worksheet.
Schedule NTS-L-NRPY is used to determine if the taxpayer
qualifies for a).No Tax Status or b).The limited income
credit (shown per line 32).
The following other credits are shown per Schedule Z:
Long term capital gains credit applied to 12% income,
Lead Paint credit, Economic Opportunity Area credit, Full
Employment credit, Septic credit, Brownsfields credits, Low
Income Housing credit, Income Tax Paid to Other
State credit and the Energy credit.
The credits for lead paint, economic opportunity area, full
employment and septic credit, Brownsfields credits, Low
Income Housing credit must be entered on the Sch Z
worksheet.
The income tax paid to other state credit is calculated on
Schedule NTS-L-NRPY. This credit is allowed for part-year
residents but not nonresidents.
The Energy Credit is calculated on Sch EC. This credit is
allowed for part-year residents but not non-residents.
This includes all income tax withheld for the Commonwealth of
Massachusetts as shown per Forms W-2, W-2G and 1099R. These
amounts are automatically calculated once the withholding is
entered on the W-2's and 1099R. If you have withholding on any
other 1099 for the State of Mass., enter this amount to the
left of line 40.
This amount carries from the line 63 worksheet of the U.S.
1040, titled "Amount from last year's return". The State ID
(MA) must be entered n the State column and the amount from
last years return.
This amount carries from the line 63 worksheet of the U.S.
1040. The amounts for the quarterly estimated payments must
be entered in the "State" column and the State ID (MA).
The credit allowed by Mass. is equal to 15% of the Federal
amount. This credit is automatically calculated if you
qualify for the credit federally and have entered the
childrens information and EIC checkbox on the "Client Data
Screen" of the Crosslink program.
Enter any Massachusetts state income tax payments made with
extension (per Mass. Form 4868).
Enter the amount of overpayment per line 48 you want to credit
to 2015 estimated tax.
If you owe more than $200 you should complete Form M-2210 to
see if you owe an underpayment penalty. If you owe a penalty
this amount will automatically transfer to line 50c.
This information can be manually entered at the bottom of
the MA-1 Long Income Tax Return or pressing F-3 will access
the paid preparer list.
The Mass Sch D calculates the sale of
Long Term Capital Assets from the;
U.S. Sch D,
Form 4684,
Form 4797, and
Form 6252.
Enter the sale transaction on these federal forms to
auto-calculate the capital gains and losses on the
MA Sch D.
Note: Sales of Short Term Capital Assets are
entered on the applicable federal form and calculate
on the MA Sch B.
The Mass Sch D in 2014 is a four-page form. Page 1
is used for capital assets (sold before May 1, 2002); and
1) Held over 1 year but not more than two years and
2) Capital assets held over 2 years but not more than
three years. Page 2 is used for capital assets
(sold before May 1, 2002); and
1) Held over 3 years but not more than four years, and
2) Capital assets held over 4 years but not more than
five years. Page 3 is used for capital assets
(sold before May 1, 2002); and
1) Held over 5 years but not more than six years, and
2) Capital assets held over six years.
Page 4, Part 2 is used for capital assets
(sold after April 30, 2002).
A. The 2014 tax rates for the sale of capital assets (sold
before May 1, 2002), as follows;
5% for capital assets held 1-2 years,
4% for capital assets held 2-3 years,
3% for capital assets held 3-4 years.
2% for capital assets held 4-5 years.
1% for capital assets held 5-6 years.
0% for capital assets held over 6 years.
B. The 2014 tax rate for the sale of capital assets (sold
after April 30, 2002) is 5.3%.
Page 4, Part 3 summarizes Tax on long term capital gains.
The MA Sch D has a worksheet for line 13 which automatically
calculates "Long Term Capital Losses Applied Against
Long Term Capital Gains."
The MA Sch D has a links to the MA Sch B and nets;
A. Long Term Capital Losses with Short Term Capital Gains,
B. Short Term Capital Losses with Long Term Capital Gains
Lines 4 and 5 of the MA Sch D, Description and Amount,
auto calculate, but require the entry of the applicable
code;
(A) Capital assets held 1-2 years and sold before May 1, 2002
(B) Capital assets held 2-3 years and sold before May 1, 2002
(C) Capital assets held 3-4 years and sold before May 1, 2002
(D) Capital assets held 4-5 years and sold before May 1, 2002
(E) Capital assets held 5-6 years and sold before May 1, 2002
(F) Capital assets held over 6 years and sold before May 1, 2002
(G) Long term capital assets sold after April 30, 2002.