Overview
No Tax Status and Limited Income Credit can reduce the amount of personal income tax you pay. Based on your Massachusetts Adjusted Gross Income (AGI), you may qualify for either one.
Adjusted gross income is gross income reduced by certain business expenses and other deductions claimed on Massachusetts Schedule Y, Lines 2 to 10, and Line 18.
Married filing separate taxpayers don't qualify for either NTS or LIC.
No Tax Status (NTS)
If your Massachusetts AGI doesn't exceed certain amounts for the taxable year, you qualify for No Tax Status (NTS) and aren't required to pay any Massachusetts income tax, but still need to file a tax return.
See if you qualify for NTS
Residents – Complete the Massachusetts AGI Worksheet in the Form 1 instructions. If you qualify, fill in the oval on Form 1, Line 27, and enter “0” on Line 28.
If you’re submitting documents with an abatement application (Form ABT) or amended tax return, attach the Massachusetts AGI worksheet.
Nonresidents and part-year residents – Complete Schedule NTS-L-NR/PY: No Tax Status and Limited Income Credit, Lines 1 - 11.
- Compute your Massachusetts adjusted gross income (AGI) as if you were a Massachusetts resident for the entire taxable year
- Include all income from whatever source derived - Massachusetts source income, as well as all non-Massachusetts source income, including any deductions from Schedule Y, Lines 1 to 10 and Line 18
- Report all losses as 0
- If you qualify, fill in the oval on Form 1-NR/PY, Line 31, and enter “0” on Line 32
- If you’re submitting documents with an abatement application (Form ABT) or amended tax return, attach Massachusetts Form 1-NR/PY, Schedule NTS-L-NR/PY and a copy of your federal return
If Line 7 of your Massachusetts AGI worksheet is lower than the maximum amounts below, you qualify for NTS.
| Filing status | Maximum NTS AGI | Additional amount per dependent | |
|---|---|---|---|
| Single | $8,000 | + | 0 |
| Head of household | $14,400 | + | $1,000 |
| Married filing joint | $16,400 | + | $1,000 |
Additional Resources
Limited Income Credit (LIC)
If you don't qualify for No Tax Status but your Massachusetts AGI still doesn't exceed certain limits, you might qualify for the Limited Income Credit (LIC), which can lower your taxes.
See if you qualify for LIC
Residents – Complete both the Massachusetts AGI Worksheet and the Limited Income Credit Worksheet (in the Form 1 instructions). If you qualify, fill in Form 1, Line 29.
If you’re submitting documents with an abatement application (Form ABT) or amended tax return, attach both the Massachusetts AGI worksheet and the Limited Income Credit worksheet.
Nonresidents and part-year residents – Complete Schedule NTS-L-NR/PY: No Tax Status and Limited Income Credit, Lines 1 - 17.
- Compute your Massachusetts adjusted gross income (AGI) as if you were a Massachusetts resident for the entire taxable year
- Include all income from whatever source derived - Massachusetts source income, as well as all non-Massachusetts source income, including any deductions from Schedule Y, Lines 2 to 10 and Line 18 deductions
- Report all losses as 0
- If you qualify, fill in Form 1-NR/PY, Line 33
- If you’re submitting documents with an abatement application (Form ABT) or amended tax return, attach Massachusetts Form 1-NR/PY, Schedule NTS-L-NR/PY and a copy of your federal return
If Line 7 of your Massachusetts AGI worksheet is lower than the maximum amounts below, you qualify for LIC.
| Filing status | Maximum LIC AGI | Additional amount per dependent | |
|---|---|---|---|
| Single | $14,000 | + | 0 |
| Head of household | $25,200 | + | $1,750 |
| Married filing jointly | $28,700 | + | $1,750 |
Additional Resources
Contact for Massachusetts No Tax Status and Limited Income Credit
Phone
9 a.m.–4 p.m., Monday through Friday