The purpose of this guide is to provide general information about Massachusetts tax laws and Department of Revenue policies and procedures. It is not designed to address all questions which may arise nor to address complex issues in detail. Nothing contained herein supersedes, alters or otherwise changes any provision of the Massachusetts General Laws, Massachusetts Department of Revenue Regulations, Department rulings or any other sources of the law.
Updated: April 7, 2021
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Abandoned Building Renovation Deduction
Abandoned Building Renovation Deduction
Massachusetts allows certain businesses to deduct 10% of the costs incurred in renovating certain buildings located in an Economic Opportunity Area (EOA).
Alimony Paid
A deduction is allowed for the total amount paid to a former spouse during the taxable year for alimony or separate maintenance under a court decree.
Child Support Payments do not qualify as an alimony deduction; amounts are not deductible by the payer and are not included in Massachusetts gross income by the recipient.
Allowable Excess Trade or Business Deduction
Allowable Excess Trade or Business Deduction
To determine if you have excess deductions please complete Schedule C-2.
Child and Dependent Related Deductions
Child and Dependent Related Deductions
A deduction is allowed for amounts paid to care for a qualifying child, or a disabled dependent or spouse so that a taxpayer may work or look for work. Massachusetts bases its child care expense deduction on the amount of qualifying expenses used to compute the federal child care credit under I.R.C. § 21.
Claim of Right Deduction
Learn about the Claim of Right deduction
Taxpayers who have paid Massachusetts personal income taxes in a prior year on income attributed to them under a "claim of right" may deduct such amounts of that income from their gross income if it is later determined that they: 1.) were not in fact entitled to the income, and 2.) have repaid the amounts in question.
Commuter Deduction
You can deduct certain commuting costs against your Form 1 or 1-NR/PY income for:
- Tolls paid through an E-ZPass MA account
- The cost of weekly or monthly passes for:
- MBTA transit
- Bus
- Commuter rail
- Commuter boat
Learn more with the Massachusetts Commuter Deduction tutorial.
Compensation, Injury and Sickness Benefits
Compensation, Injury and Sickness Benefits
Learn about tax deductions for compensation, injury, and sickness benefits.
Education Related Deductions
Learn about education related deduction
Employee Business Expenses
You may deduct trade, business, and certain other business expenses. Learn more.
Losses from Criminally Fraudulent Investment Arrangements
Losses from Criminally Fraudulent Investment Arrangements
Fraudulent arrangements often take the form of so-called "Ponzi" schemes, in which the party perpetrating the fraud receives cash or property from investors, purports to earn income for the investors, and reports to the investors income amounts that are wholly or partially fictitious.
Medical Related Deductions
Learn more about medical related deductions.
Moving Expenses
Employees or self-employed individuals may deduct the expense of moving themselves and their families provided the move relates to employment or business income that is subject to Massachusetts tax.
Miscellaneous income tax deductions
View miscellaneous income tax deductions
You may be able to claim certain deductions on your Massachusetts personal income tax return.
Out-of-State Employee Contributory Government Pension
Out-of-State Employee Contributory Government Pension
Individuals who move into Massachusetts and receive pension distributions from their former states' public employee retirement plans may deduct such amounts from Massachusetts gross income if the former state does not tax income received by its residents from Massachusetts contributory public employee retirement plans.
Rent Paid
Learn who is eligible and how to claim a rental deduction in Massachusetts.
Social Security (FICA) and Medicare Deduction
Social Security (FICA) and Medicare Deduction
Learn about the Social Security (FICA) and Medicare Deduction
Nonresident and Part-Year Resident Deductions and Exemptions
Nonresident and Part-Year Resident Deductions and Exemptions
Nonresidents and part-year residents have to follow certain rules when it comes to personal income tax exemptions and deductions.
Page updated: March 3, 2020