Massachusetts Gross Income Excludes the Same Items of Income That Are Excluded to a Resident:

  • 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 Massachusetts and U.S. Government contributory;
  • pension income from the U.S. military noncontributory;
  • social security and Tier I Railroad Retirement benefits; and
  • state tax refunds.


Massachusetts Gross Income Is Income Related to Massachusetts Sources and Includes:

  •  income from trade or business, including employment carried on in Massachusetts;
  •  Massachusetts lotteries and wagering winnings;
  •  real estate in Massachusetts; and
  • *interest and gains from trade or business conducted in Massachusetts.


Massachusetts Gross Income =

  •  Form 1-NR/PY, line 12 income from Massachusetts sources; plus
  •  *Schedule B, Line 35 interest and short-term capital gains related to Massachusetts trade or business; plus
  •  Schedule D, Line 18 long-term capital gains related to Massachusetts trade or business

*If income is from trade or business conducted in Massachusetts

Filing Requirement is based on Massachusetts's source gross income.  Taxpayers must file a Ma Form 1-NR/PY if Massachusetts gross income is greater than: $8,000; or (stupid rule) the personal exemption to which they may be entitled, whichever is less.

Nonresident Massachusetts Adjusted Gross Income (AGI) Computation:

+    Form 1-NR/PY, line 12
+    Schedule B, Line 35
+    Schedule D Line 18
Massachusetts Gross Income to a Nonresident
-     Schedule Y, Lines 1 - 10
-     Schedule B adjustments 
-     Schedule D adjustments
Massachusetts AGI to a Nonresident

Massachusetts Adjusted Gross Income (AGI) as if the Nonresident were a Resident Computation/Pro-forma Form 1:

     Massachusetts AGI to a Nonresident would be:

+   Form 1, line 10
+   Schedule B, Line 35 
+   Schedule D, Line 18
-    Schedule Y, Lines 1 – 10
-    Schedule B adjustments 
-    Schedule D adjustments
Massachusetts AGI to a Nonresident as if the Nonresident were a Resident 

No Tax Status (NTS) - Taxpayer fills out Schedule NTS-L-NR/PY. NTS is based on Massachusetts adjusted gross income as if the taxpayer were a full year Massachusetts resident.  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 Schedule NTS-L-NR/PY. LIC is based on Massachusetts adjusted gross income as if the taxpayer were a full year Massachusetts resident.  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.

Schedule NTS-L-NR/PY - Non- Massachusetts Source AGI:

+   Schedule NTS-L-NR/PY, Line 7, Massachusetts income that would be included if a full year resident; less 
-    Schedule NTS-L-NR/PY, Line 9, Schedule Y deductions, lines 1 – 10 that would be allowed if a full year resident

Massachusetts Taxable Income = Massachusetts Adjusted Gross Income Less:
  • Form 1-NR/PY, Lines 15 –18
  • Schedule Y, Lines 11 – 14
  • Exemptions

Tax computation