- General Rules and Qualifications
- Interactive Worksheets:
- Worksheet Examples:
- Nonresidents and Part-Year Residents
- Where to Report on Original Tax Return; What to Enclose
- Massachusetts References
General Rules and Qualifications
The excess of allowable exemptions over Form 1, Line 10 or Form 1-NR/PY, Line 12 income may be deducted against Schedule B and D income.
The order in which the exemptions may be claimed is as follows:
- against Schedule B income after deductions for allowable excess trade or business deductions, short-term capital losses, unused long-term capital losses and 50% long-term capital gains deduction (for collectibles and pre-1996 installment sales);
- against Schedule D income after netting long-term gains and losses, applying any excess Schedule D losses against Schedule B income, deducting excess Schedule B losses and deducting allowable excess trade or business deductions.
Any remaining excess exemptions may not to be carried forward to subsequent tax year.
Married filing separate taxpayers may not claim excess exemptions.
Qualification for Excess Exemptions is determined by completing the following worksheets:
- for residents whose total exemptions in Line 18 are more than the amount of 5.3% income after deductions in Line 17, Schedule B, Line 36 and Schedule D, Line 19 Worksheet - Exemptions from Interest and Dividend Income, 12% Income and Long-Term Capital Gain Income;
- for nonresidents and part-year residents whose total exemptions in Line 22 are more than the amount of 5.3% income after deductions in Line 21, Schedule B, Line 36 and Schedule D, Line 19 Worksheet - Exemptions from Interest and Dividend Income, 12% Income and Long-Term Capital Gain Income.
Where to Report on Original Tax Return; What to Enclose:
- Residents must complete the Schedule B, Line 36 and Schedule D, Line 20 Worksheet – Excess Exemptions from Interest and Dividend Income, 12% Income and Long-Term Capital Gain Income located on
2012 Form 1 Instructions, Page 11
. This worksheet can also be completed by using the Interactive Schedule B, Line 36 and Schedule D, Line 20 Worksheet. If qualified, enter the amount from Line 5 of the worksheet on Schedule B, Line 36, and enter the amount from Line 8 of the worksheet on Schedule D, Line 19. - Nonresidents and part-year residents must complete the Schedule B, Line 36 and Schedule D, Line 20 Worksheet – Excess Exemptions from Interest and Dividend Income, 12% Income and Long-Term Capital Gain Income located on
2012 Form 1-NR/PY Instructions, Page 16
. This worksheet can also be completed by using the Interactive Schedule B, Line 36 and Schedule D, Line 20 Worksheet. If qualified, enter the amount from Line 5 of the worksheet on Schedule B, Line 36, and enter the amount from Line 8 of the worksheet on Schedule D, Line 19.
- M.G.L. Chapter 62, Section 3A(b); 3C(b)