Massachusetts Gross Income Excludes:
- 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 =
- Form 1, line 10
- Schedule B interest, dividends, and short-term capital gains
- Schedule D 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 18
* 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.
- Form 1, Lines 11 –14;
- Schedule Y, Lines 11 – 16;
- Exemptions.
Tax computation
Massachusetts Total Income = Massachusetts Adjusted Gross Income Plus Items of Federal Gross Income That Are Excluded from Massachusetts 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 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.
Circuit Breaker Credit. This credit is based on Massachusetts total income. Taxpayers whose total income falls below certain thresholds may be entitled to this credit.