MA 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.

Updated: October 25, 2024

Overview

When filling out the Massachusetts personal income tax return:

Nonresidents need to multiply certain deductions and exemptions by a ratio called the Nonresident Deduction and Exemption ratio (Form 1-NY/PY, Line 14g). This ratio is your Massachusetts gross income (from sources in Massachusetts), divided by your Massachusetts gross income from all sources (as if you were a full-year resident).

When filling out Line 14 (which is for nonresidents):

• Line 14a: Total 5% income - Get it from Line 12 of Massachusetts Form 1-NR/PY.
• 14b: Interest income - Get it from Line 7a or 7b of Massachusetts Form 1-NR/PY, whichever is smaller.
• 14c: Total capital gain income  - Get it by adding up:
  • Schedule B, Part 1, Line 7
  • Schedule B, Part 2, Line 13c
  • Schedule D, Line 13.
• 14d: Total income this return - This is nonresident Massachusetts gross income (from sources in Massachusetts). Add Lines 14a through 14c.
• 14e: Non-Massachusetts source income - This is any additional income you would include if you were a full year Massachusetts resident. See information on including non-Massachusetts military service compensation for calculating Line 14e.
• 14f: Total income - Add 14d and 14e, which is Massachusetts gross income from all sources. For example, nonresident Massachusetts gross income plus income that you would have included if you were a full year Massachusetts resident.
• 14g: Deduction and exemption ratio - This is Massachusetts income divided by total income.

Line amounts cannot be negative numbers. Enter losses as 0.

Part-year residents need to multiply certain deductions and exemptions by a ratio called the Total Days as a Massachusetts Resident ratio (Form 1-NR/PY, Line 3). This ratio is the number of days you were a Massachusetts resident divided by 365 days.

Deductions

For nonresidents, deductions are based on income you reported. Multiply your deduction by the Nonresident Deduction and Exemption ratio (Form 1-NR/PY, Line 14g). This ratio is your Massachusetts gross income (from sources in Massachusetts), divided by your Massachusetts gross income from all sources (as if you were a full-year resident).

For part-year residents, deductions are based on days you spent as a Massachusetts resident. The deduction must be multiplied by the Total Days as a Massachusetts Resident ratio (Form 1-NR/PY, Line 3). This ratio is the number of days you were a Massachusetts resident divided by 365 days.

The following deductions are allowed in full if directly related to specific taxable income you reported on Form 1-NR/PY or to a personal Massachusetts residence:

• FICA, Medicare, RR, U.S. or Massachusetts retirement deduction
• Certain Schedule Y deductions:
  • Employee business expenses
  • Most miscellaneous deductions from U.S. 1040, Line 36
  • Moving expenses
  • Penalty on early savings withdrawal. This is only available if the penalties were related to Massachusetts reportable or previously reported interest income on a Massachusetts tax return.
  • Self-employed health insurance
  • Incapacitated firefighter and police officer income excluded under G.L. c.41, s.111F
  • Income excluded income per U.S. tax treaties
• Rental deduction. You're allowed a deduction of 50% of the rent paid (up to $4,000) if the residence is in Massachusetts and it's your main residence. As a nonresident, you're entitled to this deduction if you have no legal residence in Massachusetts. For example, a migrant worker comes to Massachusetts and pays rent while working here.

For tax years ending prior to January 1, 2023, Massachusetts residents and part-year residents could claim one of the following 2 credits:

1. Child under age 13, disabled dependent, and spouse care expenses*
2. Dependent member(s) of household under age 12, dependents age 65 or over (as of December 31, 2021), or disabled dependents.

*If you're a part-year resident, the credit must be multiplied by the Total Days as a Massachusetts Resident ratio (Form 1-NR/PY, Line 3). This ratio is the number of days you were a Massachusetts resident divided by 365 days.

For more information, see View child and dependent related credits.

For tax years beginning on or after January 1, 2023, Massachusetts residents and part-year residents may claim the child and family tax credit if they maintain a household that includes at least one individual who is:

• A dependent child under age 13;
• A disabled dependent or spouse; and/or
• A dependent age 65 or over. The dependent cannot be you or your spouse at the end of the tax year.

A dependent or spouse with a disability is an individual who is physically or mentally incapable of caring for himself or herself and who principally lives with the taxpayer for more than one-half of the taxable year.

There is no limit to the number of individuals for which a taxpayer can claim a credit. This means that for the 2023 tax year, the credit is $310 for each individual for which a taxpayer can claim a credit. For the 2024 tax year and thereafter, the credit is $440 for each eligible individual for which a taxpayer can claim a credit.

For more information, see Massachusetts child and family tax credit.

Nonresidents and part-year residents may also be allowed the following deductions:

• Certain Schedule Y deductions:
  • Alimony paid *
  • Clean fuel vehicles
  • College tuition
  • Health savings accounts
  • Medical savings account
  • Student loan interest
  • Undergraduate student loan interest

* If you're a part-year resident, you may claim these deductions in full only for what you paid while you were a Massachusetts resident.

If allowable:

• Nonresidents - Multiply the deduction by the Nonresident Deduction and Exemption Ratio (Line 14g).
• Part-year residents - Multiply the deduction by the Total Days as a Massachusetts Resident ratio (Line 3).

Additional Resources

View Massachusetts personal income tax deductions

Exemptions

Nonresidents - Multiply exemptions by the Nonresident Deduction and Exemption ratio. This ratio is your Massachusetts gross income (from sources in Massachusetts), divided by your Massachusetts gross income from all sources (as if you were a full-year resident).

Part-year residents - Multiply exemptions by the Total Days as a Massachusetts Resident ratio. This ratio is the number of days you were a Massachusetts resident divided by 365 days. If you have a short taxable year, you're only allowed exemptions related to the number of days you spent as a Massachusetts resident.