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     
     Massachusetts AGI

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.


Massachusetts Taxable Income = Massachusetts Adjusted Gross Income Less:
  • Form 1, Lines 11 –14;
  • Schedule Y, Lines 11 – 16;
  • Exemptions.

Tax computation