For tax years beginning on or after January 1, 2011, the following Federal deductions are allowed: 


General Rules

Certain deductions allowed as "write in adjustments" on Form 1040, U.S. Individual Income Tax Return, are allowed for Massachusetts tax purposes. The exception is a deduction for amounts contributed to an I.R.C. § 501(c)(18) Pension Plan.

The items listed above are the federal deductions allowed as adjustments on U.S. Form 1040, line 36 which are allowed as adjustments from Massachusetts gross income on Schedule Y, Line 9. On the dotted line next to line 9, be sure to indicate the type of deduction being taken, as identified on U.S. Form 1040, line 36.

Any adjustments reported on U.S. Form 1040, lines 23 through 35, for example, the IRA deduction should not be included with the write in adjustments reported on Schedule Y, Line 9.

No Tax Status and Limited Income Credit Calculation:
This deduction impacts the calculation of No Tax Status and the Limited Income Credit as it is treated as an adjustment to arrive at Massachusetts adjusted gross income on the Massachusetts AGI Worksheet and Schedule NTS-L-NR/PY.

Any federal tax law changes to these adjustments will not be automatically adopted. Massachusetts will continue to follow the "Code" of January 1, 2005.


Clean-Fuel Vehicles and Certain Refueling Property Deduction

A deduction is allowed for a portion of the cost of qualifying motor vehicles that use clean-burning fuel in the year the vehicle is placed in service. A deduction is also allowed, subject to certain limitations, for the cost of qualified clean-fuel vehicle refueling property. Qualified clean-fuel vehicle refueling property is depreciable property (not including a building and its structural components) the original use of which begins when the taxpayer either (1) stores clean-fuel or dispenses it into the fuel tank of a clean-fuel vehicle at a refueling location; or (2) recharges electric vehicles at a recharging location.

Under the January 2, 2005 Code, the federal deduction expired for tax years after December 31, 2006. The federal Energy Policy Act of 2005 (P.L. 109-58, enacted 8-8-05) replaced the clean-fuel burning deduction with a tax credit for hybrid vehicles effective for vehicles purchased or placed in service on or after January 1, 2006. This Act changed the expiration for the deduction from December 31, 2006 to December 31, 2005. However, given the change in the effective date was not part of the January 1, 2005 Code, DOR continues to adopt the Deduction for Clean-Fuel Vehicles for the 2006 tax year.


Certain Business Expenses of a Qualified Performing Artist - Schedule Y Deduction

If taxpayers meet the federal qualifications as performing artists, they do not have to complete the Massachusetts Employee Business Expense Deduction Worksheet. The amount of expenses is entered directly on Massachusetts Schedule Y, Line 9.


Certain Business Expenses of State and Local (Fee-Basis) Government Officials - Schedule Y Deduction

A deduction is allowed for expenses paid or incurred with respect to services performed by an official as an employee of a state or local government (or political subdivision of a state or local government) if the official is compensated in whole or part on a fee basis. Generally, this deduction applies to officials who provide certain services to the government, and who hire employees and incur expenses in connection with their official duties.

Lobbying Expenses:
Massachusetts continues to disallow any deduction for lobbying expenses that are disallowed as deductions for federal purposes under I.R.C. § 162(e) and continues to disallow the federal deduction for the "per diem" travel expenses for state legislators.


Certain Business Expenses of National Guard and Reserve Members - Schedule Y Deduction

Massachusetts adopts the deduction for unreimbursed overnight travel, meals and lodging expenses of National Guard and Reserve Members who must travel more than 100 miles from home to perform services as a National Guard or reserve member.

As a result of Code update, Massachusetts adopts the federal treatment for these expenses under the Internal Revenue Code, as amended and in effect on January 1, 2005. Any federal tax law changes to this deduction will not be automatically adopted. Massachusetts will continue to follow the Code of January 1, 2005.


Expenses Related to the Rental of Personal Property Engaged in for Profit Deduction

In order to take this deduction, related income must be reported on Massachusetts Schedule X, Line 4.


Jury Duty Pay Remittance Deduction

Generally, jury duty pay reflected on a Form 1099 must be included in both the employee's federal and Massachusetts gross income and reported as "other income" on his or her tax returns. If the jury duty pay is surrendered by the employee to the employer in return for continuing the employee's normal salary while on jury service, then the amount is also deductible from gross income.


Reforestation Amortization Deduction 

A Massachusetts deduction is allowed equal to the federal deduction allowed.


Repayment of Supplemental Unemployment Benefits Deduction

Supplemental Unemployment Benefits Are Taxed as Wages:

Benefits received from an employer-financed fund to which the employees did not contribute are not treated as unemployment compensation. They are taxable as wages and are subject to withholding for income tax, but may not be subject to social security and Medicare tax. These supplemental unemployment benefits are usually paid under guaranteed annual wage plans and must be reported as income.

Repayment of Supplemental Unemployment Benefits:
Taxpayers may have to repay some of their supplemental unemployment benefits to qualify for trade readjustment allowances under the Trade Act of 1974. If such amounts are repaid in the same tax year as received, then they may be deducted.

To claim this deduction, however, the amount of supplemental unemployment benefit must be reported as income.

If repayment occurs in a subsequent year, the taxpayer may take a deduction provided a tax was paid on the income in the year received because he believed he had a right to it. The deduction must be taken in the year of repayment. If the taxpayer has no income against which to take the deduction, the amount may not be used in a later year.

For Claim of Right


Where to Report on Original Tax Return; What to Enclose: 

Clean-Fuel Vehicles Deduction

  • The amount is reported as an adjustment on U.S. Form 1040, Line 36 and must be entered on either Mass Form 1 or 1-NR/PY, Schedule Y, Line 9. Fill in the certain qualified deductions from U.S. Form 1040 oval and write "Clean Fuel" on the dotted line next to Line 9.
  • Part-year residents determine the amount allowable by multiplying the amount reported on U.S. Form 1040, Line 36 by Massachusetts Form 1-NR/PY, Line 2, Part-year Resident Ratio, since this deduction must be prorated based upon the number of days a taxpayer is a Massachusetts resident.
  • Nonresidents determine the amount allowable by multiplying the amount reported on U.S. Form 1040, Line 36 by Massachusetts Form 1-NR/PY, Line 14g, Nonresident Deduction and Exemption Ratio, since this deduction must be prorated based upon the amount of taxpayer's Massachusetts gross income (derived from sources within Massachusetts) to Massachusetts gross income derived from all sources, as if the taxpayers were a full year Massachusetts resident.

Qualified Performing Artist Expenses

  • Qualified performing artists do not complete the Massachusetts Employee Business Expense Deduction Worksheet in the instruction booklet.
  • The amount is reported as an adjustment on U.S. Form 1040, Line 24 and must be entered on either Mass Form 1 or 1-NR/PY, Schedule Y, Line 9. Fill in the certain business expenses from U.S. Form 1040 oval.

State/Local Government Official Expenses

  • The amount is reported as an adjustment on U.S. Form 1040, Line 24 and must be entered on either Mass Form 1 or 1-NR/PY, Schedule Y, Line 9. Fill in the appropriate oval.

National Guard/Reserve Member Expenses

  • The amount is reported as an adjustment on U.S. Form 1040, Line 24 and be entered on either Mass Form 1 or 1-NR/PY, Schedule Y, Line 9. Fill in the appropriate oval.

Expenses Related to Rental of Personal Property Engaged in for Profit

  • The amount reported on U.S. Form 1040, Line 21 must be entered on either Mass Form 1 or 1-NR/PY, Schedule X, Line 4. The deduction is reported as an adjustment on U.S. Form 1040, Line 36 and must be entered on either Mass Form 1 or 1-NR/PY, Schedule Y, Line 9. Fill in the certain qualified deductions from U.S. form 1040 oval and write "PPR" on the dotted line next to Line 9.

Jury Duty Pay

  • Residents, the amount of jury duty pay reported on U.S. Form 1040, Line 21 must be entered as income on Mass Form 1, Schedule X, Line 4. If the jury duty pay is surrendered by the employee to the employer in return for continuing the employee's normal salary while on jury duty, then the amount is also deductible. The amount is reported as an adjustment on U.S. Form 1040, Line 36 and must be entered on Mass Form 1, Schedule Y, Line 9. Fill in the certain qualified deductions from U.S. Form 1040 oval and write "Jury Pay" on the dotted line next to Line 9.
  • Nonresidents and part-year residents, the amount of jury duty pay reported on U.S. Form 1040, Line 21 that is subject to Mass tax must be entered as income on Mass Form 1, Schedule X, Line 4. If such jury duty pay is surrendered by the employee to the employer in return for continuing the employee's normal salary while on jury duty, then the amount is also deductible. The amount is reported as an adjustment on U.S. Form 1040, Line 36 and must be entered on Mass Form 1, Schedule Y, Line 9. Fill in the certain qualified deductions from U.S. Form 1040 oval and write "Jury Pay" on the dotted line next to Line 9.

Reforestation Amortization Deduction

  • The amount is reported as an adjustment on U.S. Form 1040, Line 36 and must be entered on either Mass Form 1 or 1-NR/PY, Schedule Y, Line 9. Fill in the certain qualified deductions from U.S. Form 1040 oval and write "RFST" on the dotted line next to Line 9.

Supplemental Unemployment Benefits Deduction

  • Residents, the amount of supplemental unemployment benefits reported as wages on U.S. Form 1040, Line 7 must be entered as income on Mass Form 1, Line 3. If the benefits are repaid in the same year, then the amount is also deductible. The deduction is reported as an adjustment on U.S. Form 1040, Line 36 and must be entered on Mass Form 1, Schedule Y, Line 9. Fill in the certain qualified deductions from U.S. Form 1040 oval and write "Sup-Pay TRA" on the dotted line next to Line 9.
  • Nonresidents and part-year residents, the amount of supplemental unemployment benefits reported as wages on U.S. Form 1040, Line 7 that is subject to Mass tax must be entered as income on Mass Form 1-NR/PY, Line 5. If such benefits are repaid in the same year, then the amount is also deductible. The deduction is reported as an adjustment on U.S. Form 1040, Line 36 and must be entered on Mass Form 1-NR/PY, Schedule Y, Line 9. Fill in the certain qualified deductions from U.S. Form 1040 oval and write "Sup-Pay TRA" on the dotted line next to Line 9.

All deductions other than Clean-Fuel Vehicles Deduction

  • Nonresidents and part-year residents may claim this deduction only if it is directly related to taxable income reported on Form 1 NR/PY.

Documentation to Submit with Abatement/Amended Tax Return:

to show that the deduction was taken federally

  • Copy of Form 1040 - U.S. Individual Income Tax Return (Page 1), or Form 1040X - Amended U.S. Individual Income Tax Return.

Massachusetts References:

Federal References:

  • I.R.C. §§ 62(a)(2)(C), (a)(2)(E), (a)(13), (a)(14); 162(h), (p); 179A; 194

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