A full year resident taxpayer who files single

Income:
Wages$10,000
Dividends$600
Short-term capital gains$2,400
Long-term capital gains$1,200
Gross income$14,200

Deductions:
FICA($2,000)
Rental deduction($1,000)
Total deductions($3,000)

Exemptions:
Personal exemption($4,400)
Adoption exemption($1,325)
Medical exemption($5,950)
Total exemptions($11,675)
  
2013 Massachusetts Form 1:
Line 2a. Personal exemptions$4,400
Line 2e. 1. Medical/Dental  $5,950     2. Adoption  $1,325     1+2=2e              $7,275
Line 2f. Total Exemptions$11,675
Line 3. Wages$10,000
Line 10. TOTAL 5.25% INCOME$10,000
Line 11. Amount paid to Social Security$2,000
Line 14. Rental deduction 
               Total rent paid in 2013: a. $2,000 /2 =$1,000
Line 16. TOTAL DEDUCTIONS$3,000
Line 17. 5.25% INCOME AFTER DEDUCTIONS$7,000
Line 18. Total exemption amount (from Line 2, item f)$11,675
Line 19. 5.25% INCOME AFTER EXEMPTIONS$0
Line 20. INTEREST AND DIVIDEND INCOME from Schedule B, line 38$0
Line 23. 12% INCOME from Schedule B, Line 39$0
Line 24. TAX ON LONG-TERM CAPITAL GAINS from Schedule D,$0
If excess exemptions were used in calculating lines 20, 23 or 24,
fill in oval
 
Line 28. TOTAL INCOME TAX$0
  
2013 Massachusetts Schedule B:
Part 1. Interest and Dividends: 
Line 2. Total ordinary dividends$600
Line 4. Total interest and dividends$600
Line 7. Subtotal: Line 4 minus lines 5 and 6$600
Line 9. Subtotal interest and dividends after excess trade or business deductions$600
  
Part 2. Short-Term Capital Gains/Losses & Long-Term Gains on Collectibles 
Line 10. Short-term capital gains$2,400
Line 13. Add lines 10 through 12$2,400
Line 15. Subtotal: Subtract line 14 from line 13$2,400
Line 19. Combined STCL and STCG$2,400
Line 24. STCG and LTCG on collectibles from line 19$2,400
Line 26. STCG and LTCG on collectibles after applying
long-term losses against short-term gains
$2,400
Line 28. STCG after LTCG deduction$2,400
  
Part 3. Adjusted Gross Interest, Dividends, Short-Term Capital Gains and
Long-Term Gains on Collectibles
 
Line 29. Subtotal interest and dividends from line 9$600
Line 31. Subtotal interest and dividends after applying STCL. See instructions$600
Line 33. Adjusted interest and dividends after applying LTCL$600
Line 34. STCG after applying LTCG deduction from line 28$2,400
  
Part 4. Taxable Interest, Dividends and Certain Capital Gains 
Line 35. Adjusted interest, dividends and capital gains. Add
lines 33 and 34
$3,000
Line 36. Excess exemptions (from worksheet in instructions)$3,000
Line 37. Adjusted interest and dividends after excess exemptions$0
Line 38. Taxable interest and dividends; also enter on Form 1, Line 20 or
Form 1-NR/PY, Line 24
$0
Line 39. Capital gains to be reported on Form 1, Line 23a or Form
1-NR/PY, Line 27a
$0
  
2013 Massachusetts Schedule D:
Line 1, LTCG$1,200
Line 11. LTCG after applying differences. See instructions$1,200
Line 13. Subtotal LTCG after removing LTCG from collectibles and pre-1996 installment sales$1,200
Line 15. Subtotal LTCG after applying capital losses against capital gains$1,200
Line 17. Subtotal LTCG after applying against interest and dividends$1,200
Line 19. Subtotal LTCG after applying allowable deductions from your trade or business$1,200
Line 20. Excess exemptions (from worksheet in instructions) only if
single, head of household or married filing jointly
$1,200
Line 21. Taxable LTCG$0
Line 22. Tax on long-term capital gains. Enter on Form 1, Line 24 or
Form 1-NR/PY, Line 28
$0
  

2013 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 (Only if Single, Head of Household, or Married Filing Jointly)

Residents: If your total exemptions in Form 1, Line 18 are more than the amount of your 5.25% income after deductions in Form 1, Line 17, 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 Form 1, Line 17 is less than Form 1, Line 18 to determine if you qualify for the excess exemption. Enter all losses as "0."

Nonresidents and Part-Year Residents: If your total exemptions in Form 1-NRPY, Line 22 are more than the amount of your 5.25% income after deductions in Form 1-NRPY, Line 21, 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 Form 1-NRPY, Line 21 is less than Form 1-NRPY, Line 22 to determine if you qualify for the excess exemption. Enter all losses as "0."

Line 1. Enter amount from Schedule B, line 35. Not less than "0"$3,000
Line 2. Enter amount from Form 1, line 18 or Form 1-NR/PY, line 22$11,675
Line 3. Enter amount from Form 1, line 17 or Form 1-NR/PY, line 21$7,000
Line 4. Subtract Line 3 from line 2. If "0" or less, you do not qualify for this
exemption. Omit remainder of worksheet
$4,675
Line 5. Excess exemptions applied against interest and
dividend income and 12% income. If line 1 is larger than line 4,
enter line 4 here and in Schedule B, line 36. If line 4 is equal to or
larger than line 1, enter line 1 here and in Schedule B, line 36.
Complete lines 6 through 8
$3,000
Line 6. Subtract line 5 from line 4. If "0", omit remainder of worksheet$1,675
Line 7. Enter Schedule D, line 19. Not less than "0"$1,200
Line 8. Excess exemptions applied against long-term capital gain
income. If line 7 is larger than line 6, enter line 6 here and in Schedule D,
line 20. If line 6 is equal to or larger than line 7, enter line 7 here and in
Schedule D, line 20
$1,200
For more Information regarding Excess Exemptions
Return to Personal Income Tax Issues