View miscellaneous income tax deductions

You may be able to claim certain deductions on your Massachusetts personal income tax return.

For Massachusetts tax purposes, you may be allowed certain deductions on Form 1040, U.S. Individual Income Tax Return, as "write in adjustments". The exception is a deduction for amounts contributed to an I.R.C. § 501(c)(18) pension plan.

The deductions below are the federal deductions allowed as adjustments from federal gross income on U.S. Form 1040, Line 36. These federal deductions are allowed as adjustments from Massachusetts gross income on Schedule Y, Line 9.

These deductions affect how you calculate No Tax Status and the Limited Income Credit since they adjust your Massachusetts adjusted gross income on your Massachusetts AGI Worksheet and Schedule NTS-L-NR/PY.

Do not include any adjustments you reported on U.S. Form 1040, Lines 23 through 35, such as the IRA deduction, with the write in adjustments you report on Schedule Y, Line 9.

If you're submitting an abatement/amended tax return for any of these deductions, attach:

  • Copy of Form 1040 - U.S. Individual Income Tax Return (Page 1), or
  • Form 1040X - Amended U.S. Individual Income Tax Return

Attorney fees and court costs

You're allowed a deduction for attorney fees and court costs you (or someone on your behalf) paid for any actions involving a claim of unlawful discrimination.

To claim the deduction on your tax return
  1. Report it as an adjustment on U.S. Form 1040 (Line 36) and enter it on MA Form 1 (or 1-NR/PY), Schedule Y, Line 9.
  2. Fill in the "Certain qualified deductions from U.S. Form 1040" oval and write "UDC" on the dotted line next to Line 9.

Certain business expenses of National Guard and Reserve members

If you're a National Guard or Reserve member who has to travel more than 100 miles from home to perform services as a National Guard or Reserve member, you're allowed a deduction for:

  • Unreimbursed overnight travel
  • Meals
  • Lodging expenses
To claim the deduction on your tax return
  1. Report it as an adjustment on your U.S. Form 1040 (Line 24) and enter it on MA Form 1 (or 1-NR/PY), Schedule Y, Line 9.
  2. Fill in the appropriate oval.

Qualified performing artist business expenses

If you meet the federal qualifications to be considered a performing artist, you don't have to complete the Massachusetts Employee Business Expense Deduction Worksheet in the instruction booklet. Instead, enter your related expenses directly on MA Form 1 or Form 1-NR/PY, Schedule Y, Line 9.

You federally qualify as a performing artist if:

  • You worked as a performing artist for at least 2 employers
  • The deduction is greater than 10% of your gross income from those performances
  • Your adjusted gross income, not counting the federal Qualified Performing Artists deduction, is not more than $16,000
To claim the deduction on your tax return
  1. Report this deduction as an adjustment on U.S. Form 1040, Line 24.
  2. Enter it on MA Form 1 (or 1-NR/PY), Schedule Y, Line 9.
  3. Fill in the "Certain business expenses from U.S. Form 1040" oval.

Government officials' business expenses

If you:

  • Perform services as an official state or local government (or political subdivision of a state or local government) employee, and
  • You're compensated in whole or part on a fee basis

You're allowed a deduction for the expenses you paid related to those services.

Generally, this applies to officials who provide certain services to the government, and who hire employees and incur expenses related to their official duties.

Massachusetts does not allow:

  • Any deduction for lobbying expenses that are not allowed as deductions for federal purposes under I.R.C. § 162(e)
  • The federal deduction for state legislators' daily ("per diem") travel expenses
To claim the deduction on your tax return
  1. Report the deduction as an adjustment on U.S. Form 1040 (Line 24).
  2. Enter it on either MA Form 1 (or 1-NR/PY), Schedule Y, Line 9.
  3. Fill in the appropriate oval.

    Chaplain contributions to I.R.C. § 403(b) plans

    If you're a chaplain and your employer doesn't exclude contributions from earned income, you're allowed deductions for contributions you make to a 403(b) plan.

    Renting out personal property for profit

    If you get income from renting out personal property for profit, you can claim a deduction for expenses related to such renting out.

    To claim the deduction on your tax return
    • Enter the amount you reported on your U.S. Form 1040 (Line 21) on MA Form 1 (or 1-NR/PY), Schedule X, Line 4.
    • Report the deduction as an adjustment on U.S. Form 1040 (Line 36).
    • Enter the deduction amount on either MA Form 1 or 1-NR/PY, Schedule Y, Line 9.
    • Fill in the "Certain qualified deductions from U.S. Form 1040" oval and write "PPR" on the dotted line next to Line 9.

    Jury duty pay

    Generally, you must include the jury duty pay you reported on your Form 1099 in both your federal and Massachusetts gross income as well, and report it as "other income" on your tax returns.

    If you surrender your jury duty pay to your employer in return for continuing your normal salary while on jury service, then you can deduct the jury duty pay from your gross income.

    To claim the deduction on your tax return

    Residents: 

    1. Enter the jury duty pay you reported on U.S. Form 1040 (Line 21) as income on MA Form 1, Schedule X, Line 4.
    2. If you surrender your jury duty pay to your employer in return for your normal salary while on jury duty, then the amount is also deductible. Report the amount as an adjustment on U.S. Form 1040 (Line 36).
    3. Enter the deduction on MA Form 1, Schedule Y, Line 9.
    4. Fill in the "Certain qualified deductions from U.S. Form 1040" oval and write "Jury Pay" on the dotted line next to Line 9.

    Nonresidents and part-year residents:

    1. Enter the jury duty pay you reported on U.S. Form 1040 (Line 21) that is subject to Massachusetts tax as income on MA Form 1, Schedule X, Line 4.
    2. If you surrender jury duty pay to your employer in return for your normal salary while on jury duty, then the amount is also deductible. Report the deduction as an adjustment on U.S. Form 1040 (Line 36).
    3. Enter the deduction on MA Form 1, Schedule Y, Line 9.
    4. Fill in the "Certain qualified deductions from U.S. Form 1040" oval and write "Jury Pay" on the dotted line next to Line 9.

    Reforestation amortization and expenses

    A Massachusetts deduction for reforestation amortization and expenses is allowed equal to the federal deduction.

    To claim the deduction on your tax return
    • Report the deduction as an adjustment on U.S. Form 1040 (Line 36).
    • Enter the deduction on MA Form 1 (or 1-NR/PY), Schedule Y, Line 9.
    • Fill in the "Certain qualified deductions from U.S. Form 1040" oval and write "RFST" on the dotted line next to Line 9.

    Repaying supplemental unemployment benefits

    Benefits you received from an employer-financed fund you didn't contribute to are not treated as unemployment compensation. They are taxable as wages and can be withheld for income tax, but aren't subject to Social Security and Medicare tax. These supplemental unemployment benefits are usually paid under guaranteed annual wage plans and you must report them as income.

    If you receive supplemental unemployment benefits, you may have to repay them to qualify for trade readjustment allowances. If you repaid those amounts in the same tax year you received them, then you can deduct them. Claim this deduction by reporting your supplemental unemployment benefits as income.

    If you repay the benefits in a following year, you can take a deduction as long as you paid tax on supplemental unemployment benefit income in the year you received it because you believed you had a right to it.

    You must take the deduction in the year you repaid. If you have no income to apply the deduction to, you cannot use it in a later year.

    To claim the deduction on your tax return

    Residents: 

    1. Enter the supplemental unemployment benefits you reported as wages on U.S. Form 1040 (Line 7) as income on MA Form 1 (Line 3). If you repaid the benefits in the same year, then the amount is also deductible.
    2. Report the deduction as an adjustment on your U.S. Form 1040 (Line 36).
    3. Enter the deduction on MA Form 1, Schedule Y, Line 9.
    4. Fill in the certain qualified deductions from U.S. Form 1040 oval and write "Sup-Pay TRA" on the dotted line next to Line 9.

    Nonresidents and part-year residents:

    1. Enter the supplemental unemployment benefits subject to Massachusetts tax that you reported as wages on U.S. Form 1040 (Line 7) as income on MA Form 1-NR/PY (Line 5). If you repaid the benefits in the same year, then the amount is also deductible.
    2. Report the deduction as an adjustment on U.S. Form 1040 (Line 36).
    3. Enter the deduction on MA Form 1-NR/PY, Schedule Y, Line 9.
    4. Fill in the certain qualified deductions from U.S. Form 1040 oval and write "Sup-Pay TRA" on the dotted line next to Line 9.

    Additional Resources for Repaying supplemental unemployment benefits

    Penalty on withdrawing savings early

    You're allowed a deduction for paying off the penalty for withdrawing funds from a time savings account or certificate of deposit early, as long as you reported the interest on such savings as income on either your current year's or previous years' tax returns.

    You cannot claim this deduction for paying the federal 10% penalty on withdrawing from IRA and Keogh plans early.

    Nonresidents and part-year residents can only claim this deduction if it is directly related to taxable income reported on Form 1-NR/PY.

    To claim the deduction on your tax return
    1. Enter the amount you reported on U.S. Form 1040 (Line 30) on MA Form 1 (or 1-NR/PY), Schedule Y, Line 2.

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