Example #1
Single taxpayer paid $650 for home heating oil between January 1 and March 31, 2006. This taxpayer also paid $200 for home heating oil between November 1 and December 31, 2005 and took a $200 home heating fuel deduction in 2005.

2006 Schedule Y, Line 14 Worksheet - Home Heating Fuel Deduction (Only if Single, Head of Household, or Married Filing Jointly)

1. Enter your total 5.3% income from Form 1-NR/PY, line 12. Not less than "0"*

$44,150

2. Enter the total of Schedule Y, lines 1 through 10

$2,300

3. Subtract line 2 from line 1. Not less than "0"

$41,850

4. Enter total Massachusetts bank interest or the interest exemption amount, whichever is smaller, from Form 1, line 5a or line 5

Note: If Form 1-NR/PY, line 12 is a loss, do not complete line 4 above. Instead, combine Form 1-NR/PY, line 12 with the smaller amount of total Massachusetts bank interest or the interest exemption amount. Enter the result in line 4 above, unless the result is a loss. If the result is a loss, enter "0"
 

$75

5. Enter amount from Schedule B, line 35. If there is no entry in Schedule B, line 35 or if not filing Schedule B, enter the amount from Form 1-NR/PY, line 24


$700


6.
Enter the amount from Schedule D, line 18.** Not less than "0"


$2,460


7.
Add lines 3 through 6

If you are single and the total in line7 is $50,000 or less, or if you are filing as head of household or married filing a joint return, and the total in line 7 is $75,000 or less, you qualify for the Home Heating Fuel deduction. Go to line 8. Otherwise, you are not eligible for this deduction.


$45,085


8.
Enter the lesser of the amount paid for home heating oil, natural gas or propane purchased while a resident between January 1, 2006 and March 31, 2006 or $800

 


$650

9. Enter any amount of home heating fuel deduction taken last year, from 2005 Schedule Y, line 14.

 

$200

10. Add lines 8 and 9. If $800 or less, enter the amount from line 8 in Schedule Y, line 14. If greater than $800, go to line 11
 

$850


11.
Enter $800


$800


12
. Subtract line 11 from line 10


$50

13. Subtract line 12 from line 8. Enter result here and in Schedule Y, line 14

Note: Go to line 14 if your home heating fuel deduction in Schedule Y, line 14 (line 10 or line 13 of worksheet) is more than the amount of 5.3% income after deductions in line 3. The excess may be applied against all your interest and dividend income and income taxed at 12%. Any remaining excess amount may then be applied against your long-term capital gain income. Complete the Schedule B, Line 36 and Schedule D, line 19 Worksheet to calculate the excess deduction amount.
 


$600

14. Excess home heating fuel deduction. Subtract line 3 from the amount entered in Schedule Y, line 14 (line 10 or line 13 of worksheet). Enter here and in line 3 of Schedule B, line 36 and Schedule D, line 19 Worksheet on page 13. 
*Add back any Abandoned Building Renovation deduction claimed on Schedule(s) C and/or E before entering an amount in line 1.
** If filing Schedule D-IS, Installment Sales, see the Schedule D-IS instructions for the amount to enter in line 6. Schedule D-IS and instructions are available on DOR's website at www.mass.gov/dor.
 

Example #2 - Excess Home Heating Fuel Deduction Worksheet Example

A single taxpayer has the following income and expenses:

Income:

Pension$4,300
Interest, non-mass$9,200
Total Income$13,500
Expenses:
Home heating oil payments between January - March 2006($950)
Alimony paid($3,900)
Total Expenses($4,850)
Exemptions:
Personal exemption($3,850)
Total Exemptions($3,850)
2006 Massachusetts Form 1:
Line 2f. Total Exemptions

$3,850

Line 4. Pension

$4,300

Line 10. TOTAL 5.3% INCOME

$4,300

Line 15. Other deductions from Schedule Y, lines 1 - 10

$3,900

Line 16. TOTAL DEDUCTIONS

$3,900

Line 17. 5.3% INCOME AFTER DEDUCTIONS

$0

Line 18. Total exemption amount (from Line 2, item f)

$3,850

Line 19. 5.3% INCOME AFTER EXEMPTIONS

$0

Line 20. INTEREST AND DIVIDEND INCOME from Schedule B, line 38

$4,950

Line 21. TOTAL TAXABLE 5.3% INCOME

$0

2006 Schedule Y, Line 14 Worksheet - Home Heating Fuel Deduction (Only if Single, Head of Household, or Married Filing Jointly)
1. Enter your total 5.3% income from Form 1, line 10. Not less than "0"*

$4,300

2. Enter the total of Schedule Y, lines 1 through 10

$3,900

3. Subtract line 2 from line 1. Not less than "0"

$400

4. Enter total Massachusetts bank interest or the interest exemption amount, whichever is smaller, from Form 1, line 5a or line 5b

Note: If Form 1, line 10 is a loss, do not complete line 4 above. Instead, combine Form 1, line 10 with the smaller amount of total Massachusetts bank interest or the interest exemption amount. Enter the result in line 4 above, unless the result is a loss. If the result is a loss, enter "0"

$0


5.
Enter amount from Schedule B, line 35. If there is no entry in Schedule B, line 35 or if not filing Schedule B, enter the amount from Form 1, line 20


$9,200


6.
Enter the amount from Schedule D, line 18. **Not less than "0"
 


$0

7. Add lines 3 through 6

If you are single and the total in line 7 is $50,000 or less, or if you are filing as head of household or married filing a joint return, and the total in line 7 is $75,000 or less, you qualify for the Home Heating Fuel deduction. Go to line 8. Otherwise, you are not eligible for this deduction
 

$9,600

8. Enter the lesser of the amount paid for home heating oil, natural gas or propane purchased between January 1, 2006 and March 31, 2006 or $800
 

$800

9. Enter any amount of home heating fuel deduction taken last year, from 2005 Schedule Y, line 14
 

$0


10
. Add lines 8 and 9. If $800 or less, enter the amount from line 8 in Schedule Y, line 14. If greater than $800, go to line 11


$800


11
. Enter $800
 

12.
Subtract line 11 from line 10
 
 

13.
Subtract line 12 from line 8. Enter the result here and in Schedule Y, line 14

Note: Go to line 14 if your home heating fuel deduction in Schedule Y, line 14 (line 10 or line 13 of worksheet) is more than the amount of total 5.3% income after deductions in line 3, the excess may be applied against all your interest and dividend income and income taxed at 12%. Any remaining excess amount may then be applied against your long-term capital gain income. Complete the Schedule B, Line 36 and Schedule D, line 19 Worksheet to calculate the excess deduction amount.
 
 
14. Excess home heating fuel deduction. Subtract line 3 from the amount entered in Schedule Y, line 14 (line 10 or line 13 of worksheet). Enter here and in line 3 of the Schedule B, line 36 and Schedule D, line 19 Worksheet

$400

*Add back any Abandoned Building Renovation deduction claimed on Schedule(s) C and/or E before entering an amount in line 1.
** If filing Schedule D-IS, Installment Sales, see the Schedule D-IS instructions for the amount to enter in line 6. Schedule D-IS and instructions are available on DOR's website at www.mass.gov/dor.
 

2006 Schedule B, Line 36 and Schedule D, Line 19 Worksheet - Exemptions from Interest and Dividend Income, 12% Income and Long-Term Capital Gain Income and Excess Home Heating Fuel Deduction Example (Only if Single, Head of Household, or Married Filing Jointly)

Residents: If your total exemptions in Line 18 are more than the amount of your 5.3% income after deductions in Line 17 or your home heating fuel deduction from Schedule Y, Line 14 is more than the amount of 5.3% income after deductions from Schedule Y, Line 14 Worksheet, line 3, the excess may be applied against all your interest and dividend income and income taxed at 12%. Any remaining excess amount may then be applied against all your long-term capital gain income. Complete the following worksheet only if Line 17 is less than Line 18 to determine if you qualify for the excess exemption and the Schedule Y, Line 14 Worksheet on page 20 to determine if you qualify for the excess deduction. Enter all losses as "0."

Nonresidents and Part-Year Residents: If your total exemptions in Line 22 are more than the amount of your 5.3% income after deductions in Line 21or your home heating fuel deduction from Schedule Y, Line 14 is more than the amount of 5.3% income after deductions from Schedule Y, Line 14 Worksheet, line 3, the excess may be applied against all your interest and dividend income and income taxed at 12%. Any remaining excess amount may then be applied against all your long-term capital gain income. Complete the following worksheet only if Line 21 is less than Line 22 to determine if you qualify for the excess exemption and the Schedule Y, Line 14 Worksheet on page 25 to determine if you qualify for the excess deduction. Enter all losses as "0."

Line 1. Enter amount from Schedule B, line 35. Not less than "0"

$9,200

Line 2. Enter amount from Form 1, line 18 or Form 1-NR/PY, line 22

$3,850

Line 3. Enter the amount from line 14 of the Schedule Y, Line 14 Worksheet

$400

Line 4. Add lines 2 and 3

$4,250

Line 5. Enter amount from Form 1, line 17 or Form 1-NR/PY, line 21

$0

Line 6. Subtract Line 5 from line 4. If "0" or less, you do not qualify for this exemption. Omit remainder of worksheet

$4,250

Line 7. Excess exemptions applied against interest and dividend income and 12% income. If line 1 is larger than line 6, enter line 6 here and in Schedule B, line 36 and omit remainder of worksheet. If line 6 is equal to or larger than line 1, enter line 1 here and in Schedule B, line 36. Complete lines 8 through 10

$4,250

Line 8. Subtract line 7 from line 6. If "0," omit remainder of worksheet

$0

Line 9. Enter Schedule D, line 18. Not less than "0"

$0

Line 10. Excess exemptions applied against long-term capital gain income. If line 9 is larger than line 8, enter line 8 here and in Schedule D, line 19. If line 8 is equal to or larger than line 9, enter line 9 here and in Schedule D, line 19

$0

Computation of Taxable Income:

  • Form 1 income = $4,300
  • Schedule Y deductions, Lines 1 - 10 (alimony) = ($3,900)
  • Form 1 adjusted gross income = $400
  • Schedule Y home heating fuel deduction = ($400)
  • Form 1 taxable income = $0

Computation of Excess Exemptions:

  • Allowable exemptions = ($3,850)
  • Excess Schedule Y Home heating fuel deduction = ($400)
  • Total Exemptions = ($4,250)

Computation of Schedule B Taxable Income:

  • Interest income reported on Schedule B = $9,200
  • Computed excess exemption allowed = ($4,250)
  • Net interest to be reported on Form 1 = $4,950

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