Learn about No Tax Status and Limited Income Credit

If your Massachusetts Adjusted Gross Income (AGI) doesn’t exceed certain amounts for the taxable year, you might qualify for No Tax Status (NTS) or Limited Income Credit (LIC).

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 1 to 10, such as:

  • Allowable employee business expenses
  • Alimony paid
  • Student loan interest
  • Etc.

These are generally federal allowable deductions, except for Line 4.

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. 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 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 non-Massachusetts source income as well as all non-Massachusetts Schedule Y, Lines 1 to 10 deductions. Non-Massachusetts source income is all the income you'd have to report if you were a Massachusetts resident.
  • 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 or amended tax return, attach Massachusetts Form 1 - NR/PY, Schedule NTS-L-NR/PY and a copy of U.S. Form 1040, 1040A, 1040EZ, or 1040NR.

If Line 7 (Rental, Royal, REMIC, Partnership, S Corporation, Trust Income or Loss) 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 amounts, you might qualify for the Limited Income Credit (LIC), which can lower how much tax you pay.

See if you qualify for LIC

Residents – Complete both the Massachusetts AGI worksheet and the Limited Income Credit worksheet (page 13 – 14). If you qualify, fill in the oval on Form 1, Line 27, and enter “0” in Line 28.
If you’re submitting documents with an abatement 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 non-Massachusetts source income as well as all non-Massachusetts Schedule Y, Lines 1 to 10 deductions. Non-Massachusetts source income is all the income you'd have to report if you were a Massachusetts resident.
  • Report all losses as 0.
  • If you qualify, fill in the oval on Form 1-NR/PY, and enter “0” on Line 33.
  • If you’re submitting documents with an abatement or amended tax return, attach Massachusetts Form 1 - NR/PY, Schedule NTS-L-NR/PY and a copy of U.S. Form 1040, 1040A, 1040EZ, or 1040NR.

If Line 7 (Rental, Royal, REMIC, Partnership, S Corporation, Trust Income or Loss) 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

Feedback

Tell us what you think