ExemptionCalculation of 2013 ExemptionWhere Deducted
Adoption Exemption





 

An exemption is allowed for fees paid to a licensed adoption agency for the adoption of a minor child. The exemption is for the full amount of the fees paid during the taxable year; including fees paid by the taxpayer in the taxable year to an adoption agency on account of the adoption process of a minor child regardless of whether an adoption actually takes place during the taxable year.

No exemption is allowed for any portion of expenses that are paid or reimbursed by an employer and excluded from gross income under IRC Section 137. See Adoption Assistance Programs

Mass Form 1, Line 2f, or Form 1-NR/PY, Line 4f.




 
Age 65 or Over Exemption


 

A $700 exemption is allowed for each taxpayer who has attained the age of 65 before the close of the tax year.

If filing a joint return, each spouse may be entitled to a $700 exemption if each is age 65 or over on December 31st of the tax year.
 
Blindness Exemption  



 

A $2,200 exemption is allowed for each taxpayer or spouse who is legally blind at the close of the taxable year.

For Massachusetts purposes, a taxpayer qualifies for the blindness exemption if his or her visual acuity with correction is 20/200 or less in the better eye, or if his or her peripheral field of vision has been contracted to a 10-degree radius or less, regardless of visual acuity.
Mass Form 1, Line 2d, or Form 1-NR/PY, Line 4d 


 
Dependent Exemption





 

A $1,000 exemption is allowed for each dependent claimed that qualifies for a U.S. dependent exemption under the Internal Revenue Code. This exemption does not include taxpayer or spouse.

Dependent means either:

  • a qualifying child; or
  • a qualifying relative.
Number from U.S. Form 1040, Line 6c or U.S. Form 1040A, Line 6c in the box on Mass Form 1, Line 2b, or Form 1-NR/PY, Line 4b.


 
Excess Exemptions









 

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.

Complete the Schedule B, Line 36 and Schedule D, Line 20 Worksheet - Excess Exemptions from Interest and Dividend Income, 12 percent Income and Long-Term Capital Gain Income, and 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.

Medical/Dental Exemption  




 

An exemption is allowed for medical, dental and other expenses paid during the taxable year that are allowed federally under I.R.C. § 213. Individuals must itemize deductions on their Form 1040 - U.S. Individual Income Tax Returns.

U.S. Schedule A, line 4. If a taxpayer itemizes on U.S. Schedule A and has medical/dental expenses in excess of 7 1/2% of federal AGI, he or she may claim a medical and dental exemption in Massachusetts equal to the amount reported on U.S. Schedule A, line 4.

Amount from U.S. Schedule A, Line 4 on Mass Form 1, Line 2e, or Form 1-NR/PY, Line 4e. 



 
Nonresident and Part-Year Resident Exemptions  










 

Exemptions are:

  • prorated for nonresidents based on income reported - the exemptions must be multiplied by the Massachusetts Form 1-NR/PY, Line 22a by Line 14g, Nonresident Deduction and Exemption Ratio. This ratio is a fraction; the numerator of which is Massachusetts gross income (derived from sources within Massachusetts) and the denominator of which is Massachusetts gross income derived from all sources, as if the taxpayer were a full year Massachusetts resident.
  • prorated for part-year residents based on days a Massachusetts resident - the exemptions must be multiplied by the Massachusetts Form 1-NR/PY, Line 22a by Line 14g, Nonresident Deduction and Exemption Ratio. This ratio is a fraction; the numerator of which is the number of days taxpayer is a Massachusetts resident and the denominator of which is 365 days.
 
Personal Exemption









 
Taxpayers who file a Massachusetts tax return are entitled to a personal exemption whether or not they may claim a personal exemption on their federal return. The amount of personal exemption allowed depends on filing status claimed.

The personal exemption amounts, effective for the 2013 taxable year, are as follows:
Filing Status2013 Exemption Amount
Single; Married filing Separate$4,400
Head of Household$6,800
Married filing Joint$8,800