Massachusetts and Federal Gross Income Exclude:
- Compensation, Injury and Sickness Benefits
- Employee (Fringe) Benefits
- Other Items Specifically Excluded
- Tax Relief for Victims of Terrorist Attacks
Massachusetts Gross Income Excludes Certain Income that is Included in Federal Gross Income:
- IRA/Keogh/Pension and Profit Sharing distributions that represent contributions previously taxed by Massachusetts;
- interest income from certain U.S. and Massachusetts obligations;
- pension income from employee Massachusetts and U.S. Government contributory plans;
- pension income from U.S. military Non-Contributory Pension Plans;
- social security and Tier I Railroad Retirement benefits; and
- state tax refunds.
Massachusetts Gross Income =
- Form 1, line 10; plus
- Schedule B, Line 35 interest, dividends, and short-term capital gains; plus
- Schedule D, Line 19 long-term capital gains.
Filing Requirement is based on Massachusetts's gross income. Taxpayers must file a MA Form 1 if Massachusetts gross income is in excess of $8,000.
Massachusetts Adjusted Gross Income (AGI) Computation:
+ Form 1, line 10
+ Schedule B, Line 35
+ Schedule D, Line 19
– Schedule Y, Lines 1 - 10
– Schedule B adjustments
– Schedule D adjustments
No Tax Status (NTS) - Taxpayer fills out Massachusetts AGI Worksheet. NTS is based on Massachusetts adjusted gross income. Taxpayers who have a requirement to file may still qualify for this status depending on their Massachusetts adjusted gross income.
Limited Income Credit (LIC) - Taxpayer fills out Massachusetts AGI Worksheet and Line 28 Worksheet. LIC is based on Massachusetts adjusted gross income. Taxpayers who have a requirement to file but do not qualify for NTS may qualify for this credit depending on their Massachusetts adjusted gross income.
- Form 1, Lines 11 –14;
- Schedule Y, Lines 11 – 16;