Massachusetts Unemployment Deduction Worksheet

You are eligible for this deduction if your household income is no more than 200% of the federal poverty level based on your household size.

Updated: January 11, 2022. 

Use the worksheets below to calculate your household size and household income for tax year 2021. The full amount of your unemployment income is required to be included in the calculation of household income. Although the exclusion is no longer available federally for tax year 2021, Massachusetts taxpayers may still claim the deduction. (Note: To calculate your deduction for tax year 2020 please add in the information from your 2020 U.S. Form 1040, Schedule 1, on line 8 as directed.)

Part 1: Household Size

1. Enter “2” if married filing joint return, otherwise enter “1”	_____________________
2. Enter number of dependents claimed on U.S. Form 1040 or your Massachusetts return, whichever is higher	_____________________
3. Household size. Add lines 1 and 2	_____________________

Part 2: Household Income

4. Enter 200% of the Federal Poverty Level for your household size (from line 3 above) from the table below	_____________________
5. Enter federal adjusted gross income (from U.S. Form 1040, line 11)	_____________________
6. Enter amount of tax-exempt interest received (from U.S. Form 1040, line 2a)	_____________________
7. Enter untaxed portion of Social Security benefits received (from U.S. Form 1040, lines 6a and 6b)	_____________________
8. RESERVED: For tax year 2021 enter zero on line 8. (If using this worksheet for tax year 2020 returns, please enter as a positive amount any unemployment exclusion included in the U.S. Form 1040, Schedule 1, Line 8).	_____________________
9. Total household income. Combine lines 5 though 8	_____________________

If line 9 is greater than line 4, you do not qualify for the Massachusetts unemployment deduction. Otherwise, go to line 10.

Part 3: Unemployment Deduction

10. Enter the amount of unemployment compensation that you received and reported on Form 1, line 8a or Form 1-NR/PY, line 10a	_____________________
11. Enter the smaller of line 10 or $10,200	_____________________
12. If married filing jointly, enter the amount of   unemployment compensation your spouse received and reported on Form 1, line 8a or Form 1-NR/PY, line 10a	_____________________
13. Enter the smaller of line 12 or $10,200	_____________________
14. Unemployment deduction. Add lines 11 and 13. Enter the result here and on Schedule Y, line 9. Fill in the bubble for “certain qualified deductions” and add the amount to any other qualified deductions otherwise reportable on this line.	_____________________

See chart below for income limits based on 200% of the federal poverty level.

Income limits based on 200% of the federal poverty level

# Persons in the Family/Household	200% of the Federal Poverty Level
1	$25,520
2	$34, 480
3	$43,440
4	$52,400
5	$61,360
6	$70,320
7	$79,280
8	$88,240