(form-1-instructions)2024 Massachusetts Form 1 Resident Income Tax Return Instructions#
(form-1-instructions)(document-1)#
Department of Revenue Commonwealth of Massachusetts Mass.gov/eFile Before using paper, consider Form 1 2024 Massachusetts Resident Income Tax Fast — Filing electronically, rather than on paper, can mean faster processing of your refund and money in your account sooner. Accurate — Generally, electronic filings have fewer errors than paper forms. Online programs make it easy to ensure you don’t miss anything important. Ecofriendly — A great majority of Massachusetts taxpayers file electronically. Help us to continue reducing our carbon footprint. Affordable — Many Massachusetts taxpayers qualify to use commercial tax preparation software at no charge. Check out the free filing option through MassTaxConnect.
Give e-file a try this year! C’mon, admit it — filing paper tax returns is no fun! So, forget about waiting longer for a refund and calculation mistakes. E-file this year! There are three easy and convenient ways to do it. File Electronically for Free Many Massachusetts taxpayers qualify to file federal and state returns for free, enhancing fraud protection and cutting down on identity theft. Massachusetts joined the Free File Alliance, a nonprofit partnership between tax preparation companies, the IRS and the states to increase opportunities for taxpayers to e-file their tax returns for free. Massachusetts also partnered with the IRS Direct File program to give you another option for filing your federal and state tax returns for free. Check out the free filing options available to taxpayers at mass.gov/efile. You may also be able to file your tax return online through DOR's MassTaxConnect. You qualify for this option if you were a Massachusetts resident for the entire 2024 tax year, previously filed a Massachusetts return, and the forms you need for your return are supported by the program. Commercial Tax Preparation Software You can also e-file using commercial tax filing products. Visit our website for a complete listing of approved products. Although some of these products offer a paper filing option, you may only use that option if it incorporates a 2D barcode in the right-hand corner of all pages. If you have a 2D printing issue, contact the software manufacturer for instructions before filing to avoid rejection of your return. Also, be sure to use the correct 2D barcode mailing address: Massachusetts Department of Revenue, PO Box 7000, Boston, MA, 02204 for refunds/no payments or Massachusetts Department of Revenue, PO Box 7003, Boston, MA, 02204 for payments. See DOR’s online tax form instructions for more information. Tax Preparers The majority of paid tax preparers recognize that their clients don’t want mistakes, delays, or longer refund times so they offer e-filing for their customers. Moreover, Massachusetts law requires any preparer who completes more than 10 Massachusetts income tax returns to e-file (TIR 11-13 has a specific taxpayer opt-out provision to this law). Preparers who do file paper returns for their clients have specific requirements they must meet to avoid paying penalties and fines. You’ll find a list of preparers on the DOR website. You may qualify for assistance with preparing your tax returns. Check out options at mass.gov/taxassistance. 1 2 3 mass.gov/efile If Paper is Your Only Option For some, filing on paper may be the only option. DOR now offers fillable PDF forms to complete your tax return, which makes the processing of your return easier and avoids delays. You can directly enter your tax information and print and send it to DOR. For more information, see mass.gov/dor/incomeforms.
Major 2024 Tax Changes For more up-to-date and detailed information and to view all of the public written statements refer enced in these instructions, visit mass.gov/dor. Filing Due Dates Form 1 is due on or before April 15, 2025. 2024 Personal Income Tax Rates The tax rate on most classes of tax able income is 5%. The tax rate on long-term gains from the sale or exchange of collectibles is 12% (subject to a 50% deduction). For tax years beginning on or after January 1, 2023, the tax rate on short- term gains from the sale or exchange of capital assets is 8.5%. 4% Surtax on Taxable Income Over $1 Million Starting with tax year 2023, personal income tax payers must pay an additional 4% (4% surtax) on taxable income over $1,000,000, increased annu ally for inflation (surtax threshold). For the 2024 tax year, the threshold is $1,053,750. See Techni cal Information Release (TIR) 23-12 and the 4% Surtax FAQs for more information. Changes to Massachusetts joint filing requirements For tax years beginning on or after January 1, 2024, married couples must file a joint personal income tax return for any year in which they file a joint federal income tax return, unless an excep tion applies. See TIR 24-4 and proposed regu lation 830 CMR62.5A(11), Non-Resident Income Tax for additional information. Repeal of the Deduction of Interest from Massachusetts banks Effective for taxable years beginning on or after January 1, 2024, the deduction previously al lowed for a deduction of up to $100 ($200 for joint filers) of interest from Massachusetts banks is repealed. Employer-Provided Parking, Transit Pass, and Commuter Highway Vehicle Benefits Exclusion Amounts Massachusetts conforms to the federal income exclusion for employer-provided parking, tran sit pass, and commuter highway vehicle trans portation benefits. The IRS has determined that the 2024 inflation-adjusted monthly exclusion amounts are $315 for employer-provided park ing and $315 for combined transit pass and com muter highway vehicle transportation benefits. Penalty for Failure to Obtain Health Insurance Massachusetts requires most adults 18 and over with access to affordable health insurance to ob tain it. In 2024, individuals must be enrolled in health insurance policies that meet minimum creditable coverage standards defined in regula tions adopted by the Commonwealth Health In surance Connector Authority (Health Connector). Individuals who are deemed able to afford health insurance but fail to obtain it are generally subject to penalties in Massachusetts for each month of noncompliance in the tax year. The monthly pen alties for 2024, which will be imposed through the individual’s personal income tax return, are set out in TIR 24-1 and are based on the monthly insurance premium for which an individual would have qualified through the Health Connector. Annual Update of Circuit Breaker Tax Credit Taxpayers aged 65 or older who own or rent res idential property located in Massachusetts are al lowed a credit equal to the amount by which their total real estate tax payments, or 25% of their rent in the case of a renter, exceeds 10% of the tax payer’s total income. The credit cannot exceed a certain maximum amount that is determined by multiplying a statutory base amount by a cost-of- living adjustment for the calendar year in which the taxable year begins. The maximum credit for tax year 2024 is $2,730. The amount of the credit is subject to limitations based on the taxpayer’s total income and the as sessed value of the real estate, which for tax year 2024 must not exceed $1,172,000. For purposes of calculating the credit, total income and maxi mum credit thresholds are adjusted annually for inflation. For tax year 2024, an eligible taxpayer’s total income cannot exceed $72,000 in the case of a single filer who is not a head of household filer; $91,000 in the case of a head of household filer; and $109,000 in the case of a joint filer. To qualify for the credit, a taxpayer must be age 65 or older and must occupy the property as his or her principal residence. Child and Family Tax Credit Effective for taxable years beginning on or after January 1, 2024, the refundable, non-transferable child and family tax credit (“CFTC”) for taxpayers who maintain a household that includes certain individuals increases from $310 to $440 for each such individual, with no limit to the number of such individuals that may qualify for the credit. See TIR 24-4 for additional information. In addition, starting with tax years beginning on or after January 1, 2024, a noncustodial parent may claim the credit with respect to a child dependent that is age 13 or older and who is physically or mentally incapable of caring for himself or herself. See TIR 24-13 for additional information. Expansion of Septic Credit Effective for tax years beginning on or after Jan uary 1, 2024, the credit for expenses incurred in repairing or replacing failed cesspool or septic systems has been expanded to included expenses incurred for repairs, replacements, upgrades or sewer connections that are required by Title 5 of the State Environmental Code, 310 CMR 15.000, or a watershed permit issued by the Department of Environmental Protection. See TIR 24-14 for additional information. Temporary Authorized Training Tax Credit for Emergency Assistance A new credit takes effect for tax years beginning on or after January 1, 2024. The credit is available to businesses that provide training to individuals receiving benefits through the Massachusetts emergency housing assistance program. The credit is equal to $2,500 for each such employee. The credit is temporary. It is available only for tax years during which the emergency housing assis tance program is subject to capacity limitations. The credit is no longer available as of January 1, 2026. See TIR 24-7 for additional information. Qualified Veterans Hire Tax Credit For tax years beginning on or after January 1, 2024, the qualified veterans hire tax credit for qualified employers that hire eligible veterans in creases from $2,000 to $2,500. See TIR 24-15, Tax Provisions in An Act Honoring, Empowering, and Recognizing Our Servicemembers and Veter ans, for additional information. Repeal of the Angel Investor Tax Credit The Angel Investor Tax Credit (AITC), is repealed effective for tax years beginning on or after Jan uary 1, 2024. The AITC was previously allowed under MGL ch 62, § 6(t), and was awarded by the Massachusetts Life Sciences Center for certain investments in designated development projects. A taxpayer that has unused AITC from a tax year beginning before January 1, 2024 may carry such unused credit forward and use it in tax years be ginning on or after January 1, 2024, subject to the limitations under 830 CMR 62.6.5(11). 2024 Form 1 Instructions 3
Updated IRC Conformity Date ("Code Update") In general, a taxpayer’s Massachusetts gross in come and many deductions are based on the tax payer’s federal gross income and deductions under the IRC as of a specific date. For tax years begin ning on or after January 1, 2024, the Massachu setts personal income tax generally conforms to the IRC as amended on January 1, 2024. The Mas sachusetts personal income tax previously con formed to the IRC as amended on January 1, 2022. As a result of this update, the Massachusetts per sonal income tax will now conform to federal tax law changes affecting the determination of Mas sachusetts gross income and deductions that have been enacted since 2022. See TIR 24-14. As a general rule, Massachusetts does not con form to any personal income tax law changes to the IRC made after January 1, 2024. However, certain specific Massachusetts personal income tax provisions, as set forth in MGL ch 62, § 1(c), automatically conform to the IRC currently in ef fect. The provisions of the IRC that Massachu setts conforms to on a current basis include those provisions relating to: ◗Roth IRAs; ◗IRAs; ◗The exclusion for gain on the sale of a principal residence; ◗Trade or business expenses; ◗Travel expenses; ◗Meals and entertainment expenses; ◗The maximum deferral amount of government employees’ deferred compensation plans; ◗The deduction for health insurance costs of self-employed taxpayers; ◗Medical and dental expenses; ◗Annuities; ◗Health savings accounts; ◗Employer-provided health insurance coverage; ◗Amounts received by an employee under a health and accident plan; and ◗Contributions to qualified tuition programs. Privacy Act Notice Under the authority of 42 USC § 405(c)(2)(C)(i), and MGL ch 62C, § 5, DOR has the right to require an individual to furnish his or her Social Security number on a state tax return. This information is mandatory. DOR uses Social Security numbers for taxpayer identification to assist in process ing and keeping track of returns and in determin ing and collecting the proper amount of tax due. Under MGL ch 62C, § 40, the taxpayer’s identi fying number is required to process a refund of overpaid taxes. Although tax return information is generally confidential pursuant to MGL ch 62C, § 21, DOR may disclose return information to other taxing authorities and those entities specified in MGL ch 62C, §§ 21, 22 or 23, and as otherwise authorized by law. Filing Your Massachusetts Return If you were a resident of Massachusetts and your gross income was more than $8,000 — whether received from sources inside or outside of Massa chusetts — you are required to file a Massachu setts income tax return. If your gross income was $8,000 or less, you do not need to file a return. If you did not live in Massachusetts but received Massachusetts source income in excess of your personal exemption amount multiplied by the ratio of your Massachusetts income to your total in come, you must file as a nonresident on the Non resident/Part-Year Resident Income Tax Return, Form 1-NR/PY. If, during the taxable year, you either moved to Massachusetts or terminated your status as a Mas sachusetts resident to establish residency outside the state, and your gross income was more than $8,000 — whether received from sources inside or outside of Massachusetts — you must file as a part-year resident on the Form 1-NR/PY. What Is Gross Income? Massachusetts gross income includes the following: ◗ All wages, salaries, tips, bonuses, fees and other compensation; ◗ Taxable pensions and annuities; ◗Pension income from another state or political subdivision before any deduction; ◗ Taxable IRA/Keogh and Roth IRA distributions; ◗ Taxable alimony, see Schedule X instructions; ◗Income from a business, trade, profession, partnership, S corporation, trust or estate; ◗ Rental, royalty and REMIC income; ◗ Unemployment compensation; ◗ Taxable interest and dividends; ◗ Gambling winnings; ◗ Capital gains; ◗ Forgiveness of debt; ◗ Mortgage forgiveness; ◗ Taxable portion of scholarships and fellowships; and ◗ Any other income not specifically exempt. Massachusetts gross income also includes the fol lowing, which are not subject to U.S. income tax: ◗ Interest from obligations of states and their po litical subdivisions, other than Massachusetts and its political subdivisions; and ◗Income earned by a resident from foreign employment. Massachusetts gross income does not include: ◗Interest on obligations of the U.S. and U.S. territories; ◗Pension income received from a contributory annuity, pension, endowment or retirement fund of the U.S. government or the Commonwealth of Massachusetts and its political subdivisions. ◗ Amounts received as U.S. Social Security, pub lic welfare assistance, Veterans Administration disability payments, G.I. Bill education payments, certain worker’s compensation, gifts, accident or life insurance payments, or certain payments re ceived by Holocaust survivors; and ◗ Compensation earned by members of the armed forces for service in a combat zone (excluded to the same extent as under federal law). Am I a Resident, Nonresident, or Part‑Year Resident? There are four different categories of resident sta tus under Massachusetts tax law: ◗You are a full-year resident if your residence (domicile) is in Massachusetts or if you maintain a permanent place of abode in Massachusetts and during the year spend more than 183 days, in the aggregate, in the state. If you fit this description you should file a Massachusetts Resident Income Tax Return, Form 1. ◗You are a nonresident if you were not a res ident of Massachusetts but received Massachu setts income (e.g., from a job in Massachusetts). You must report such income by filing a Massa chusetts Form 1-NR/PY. ◗ You are a part-year resident if you either moved into or moved out of Massachusetts during the taxable year. In this case, you must reduce cer tain income, deductions and exemptions based on 2024 Form 1 Instructions 4
the number of days you were a resident or on the amount of your income that is subject to Massa chusetts tax. Part-year residents must file a Mas sachusetts Form 1-NR/PY. ◗You are both a nonresident and part-year res ident if you meet the criteria above for both the part-year resident and nonresident categories. If filing as a nonresident and part-year resident, the Schedule R/NR must be completed. Are Military Personnel Required to File? If you enlisted in the service as a Massachusetts resident and have not established a new domicile (residence) elsewhere (refer to military guide lines), and if your gross income is more than $8,000, you are required to file a Massachusetts resident income tax return. This applies even though you may be stationed outside of Massa chusetts. The words residence and domicile are used to denote the place where you have your permanent home and to which, whenever you are absent, you have the intention of returning. Non resident military personnel stationed in Massa chusetts may be subject to Massachusetts taxes and should file Form 1-NR/PY if they earn income from outside military sources. Military Spouses. The Military Spouses Res idency Relief Act (P.L. 111‑97) prohibits a ser vice-member’s spouse from either losing or ac quiring a residence or domicile for purposes of taxation because of being absent or present in any U.S. tax jurisdiction solely to be with the service member in compliance with the servicemember’s military orders. In general, for Massachusetts tax purposes, the law affects only servicemembers and their spouses who are domiciled in a state other than Massachusetts. As of January 5, 2023, the Veterans Auto and Ed ucation Improvement Act (P.L. 117–333) allows a servicemember and the spouse of such service member to choose as their residence or domicile for each taxable year of the marriage, regardless of the date of the marriage, from any of the fol lowing: (a) the residence or domicile of the ser vicemember; (b) the residence or domicile of the spouse; or (c) the permanent duty station of the servicemember. What Are the Rules for Filing a Joint Return? A joint Form 1 is not allowed unless both spouses were Massachusetts residents for the same por tion of 2024. If your spouse died during 2024, you may still choose to file a joint return. If you are legally married, you have the option of filing either a joint return or a married filing sep arate return. Married taxpayers who file a joint return are allowed to claim the following exemp tions, deductions and credits which married tax payers filing separate returns may not claim: ◗ A credit of $440 for a Child and Family Tax Credit for a dependent member of household under age 13, a dependent who is over age 65 or disabled or the taxpayer’s spouse, who is physically or men tally incapable of taking care of himself or herself; ◗No Tax Status if joint Massachusetts AGI was $16,400 or less plus $1,000 for each dependent; ◗Limited Income Credit if joint Massachusetts AGI is between $16,400 and $28,700 plus $1,750 for each dependent; ◗Excess unused exemptions against interest income (other than interest from Massachusetts banks), dividends or capital gain income; and ◗A senior circuit breaker tax credit allows senior citizens meeting certain eligibility criteria to claim a refundable credit on their state income taxes for the real estate taxes paid on the Massachusetts residential property they own or rent, and which they occupy as their principal residence. The credit is the amount by which the real estate tax payment or 25% of the rent constituting real estate tax pay ments exceeds 10% of their total income, but not more than $2,730. The credit is refundable to the extent the credit exceeds the taxpayer’s tax liability. How Do I File a Decedent’s Return? A final income tax return must be filed for a tax payer who died during the taxable year. This re turn should include income received until date of death. It must be signed and filed by his/her per sonal representative, administrator or surviving spouse for the portion of the year before the tax payer’s death. Be sure to fill in oval 1 if the taxpayer who was listed first on last year’s income tax re turn is deceased, or oval 2 if the taxpayer who was listed second on last year’s income tax return is deceased. Also, enclose Form M-1310, Statement of Claimant to Refund Due on Behalf of Deceased Taxpayer, with the refund claimant’s name and So cial Security number clearly printed. A joint return may be filed by a surviving spouse. In the case of the death of both spouses, a final return must be filed by their legal representative. Any income of $100 or more received for the dece dent for the taxable year after the decedent’s death, and for succeeding taxable years until the estate is completed, must be reported each year on Mas sachusetts Form 2, Massachusetts Fiduciary In come Tax Return. Form 2 is available online at mass.gov/dor. If the decedent’s return shows a refund due, and if the Probate Court has not appointed a legal rep resentative and none is contemplated, a Massa chusetts Form M-1310 must be enclosed with the return so the refund check may be made payable to the proper person. Should I Make Estimated Tax Payments in 2025? Every resident or nonresident who expects to pay more than $400 in Massachusetts income tax on income which is not covered by Massachusetts withholding must pay Massachusetts estimated taxes. Estimated tax payments can be made on line by using MassTaxConnect at www.mass.gov/ masstaxconnect or by filing Massachusetts Form 1-ES. See line 40 instructions and TIR 04-25 for more information. When to File Your Return Your 2024 Massachusetts Form 1 is due on or be- fore April 15, 2025. See "Filing Due Dates" above. Automatic Extensions All taxpayers filing personal income tax returns are automatically granted a six-month extension of time to file their tax return as long as at least 80% of the total amount of tax ultimately due on or before the due date prescribed for payment of the tax has been paid. See TIR 16-10. Also, if you are making a payment of $5,000 or more, you are required to submit your extension payment electronically. Failure to do so will result in a penalty. If you are making a payment of less than $5,000, you also have the option of filing your extension electronically. You do not need to file an extension if no payment is due. If there is a tax due with your extension, payment can be made through Electronic Funds Withdrawal. Form 1 Extension Worksheet 1. Enter amount from Form 1, line 32. . . . . . . . . . . . . . . 2. Enter the total of Form 1, lines 38 through 40 and 43 through 47. . . . . . . . . . . . . . . . . . 3. Amount due. Subtract line 2 from line 1, not less than 0. . . . . . . . . . . . . . . . . . . . . . Note: Your extension will not be valid if you fail to pay 80% of your total tax liability through withhold ing, estimated tax payments or with your extension. Must I File on a Calendar Year Basis? No. You may file on a fiscal year basis if you keep your books and records on that fiscal year basis 2024 Form 1 Instructions 5
and if you receive permission from the Commis sioner of Revenue. If you file on a fiscal year basis, you must file on or before the fifteenth day of the fourth month after the end of your fiscal year. Taxpayers filing on a fiscal year basis must com plete and file Form 13, Notice of Designation of Fiscal Year, available at mass.gov/dor or by call ing (617) 887-6367 or toll-free in Massachusetts (800) 392-6089. Fiscal Year Filers Fiscal year filers should file using the tax form for the calendar year within which the short year falls. If the short year spans more than one calendar year, the filer should file using the tax form for the calendar year in which the short year began. If the current form is not available at the time the short year filer must file, the filer should follow the rules explained in TIR 11-12. What If I am Unable to Pay? If you are unable to pay the full amount of tax that you owe, you should pay as much of your tax lia bility as possible with this return. You will receive a bill from DOR for the remaining amount of tax due plus accrued interest and penalty charges. If the amount of that bill is less than $10,000 and you still cannot pay it in full, you must apply formally to DOR for a small payment agreement in order to avoid collection activity. You can apply for a small payment agreement by visiting MassTaxConnect at mass.gov/masstaxconnect. Note: Do not mail your request for a payment agreement with your tax return. Requests can be made once a bill is issued through DOR’s MassTaxConnect application at mass.gov/dor or by calling DOR at (617) 887-6367. Setting up a small payment agreement will allow you to make monthly payments within a set time period to sat isfy your unpaid liability. Name and Address Print the full name, address, and Social Security number of each person filing the return in the spaces provided. Enter names as they appear on your federal return. Social Security Number(s) Be sure to enter your Social Security number(s) on your return. Also, enter your Social Security number on pages 2 through 4 of Form 1 and on page 2 of Schedule B or Schedule C, if filed. Failure to show the correct Social Security number in the space provided will delay the processing of your return. If filing jointly, list your number and your spouse’s number in the order they appear on your federal return. Taxpayers filing their U.S. return using an Individual Taxpayer Identification num ber (ITIN) should enter that ITIN as their Social Security number in the appropriate space. Also, be sure your employer has listed the correct So cial Security number on your Form W-2. If you are married, you must list your spouse’s name and Social Security number even if you are filing a sep arate return, except as provided below. See line 1 instructions for married filing a separate return. To apply for an SSN, you must complete Form SS-5. Form SS-5 is available online at socialsecu rity.gov, from your local Social Security Adminis tration (SSA) office, or by calling the SSA at (800) 772-1213. It usually takes about two weeks to re ceive an SSN. If you are a nonresident or resident alien and you do not have and are not eligible for an SSN, you must apply for an ITIN. For details on how to do so, see Form W-7 and its instructions. Form W-7 is available online at irs.gov or by calling the IRS at (800) 829-1040. It usually takes about four to six weeks to receive an ITIN. Note: You must wait until you receive an ITIN or SSN to file your Massachusetts return. Filing an Amended Return Note: When filing an Amended return, the Amended return oval must be filled in. For ex ample, if you are filing an Amended return due to a Federal amendment, both the Amended return oval and the Federal amendment oval must be filled in. Filing an Amended Return If you need to change a line item on your re turn, complete a new return with the corrected information and fill in the Amended return oval. Your amended return must include all schedules filed with the original return even if there are no changes to the schedules. Mail your amended re turn to the same address used for original returns. Do not file Form ABT with your amended return. An amended return can be filed to either increase or decrease your tax. An amended return should also be filed to correct a credit amount (such as withholding) or to dispute a health care penalty. Generally, an amended return must be filed within three years of the date that your original return was filed. Visit mass.gov/dor/amend for more in formation about filing an amended return. Federal Changes If your amended return includes changes you have reported on an amended federal return filed with the IRS for the same tax year or if you are amend ing due to changes as a result of a federal audit, fill in the Federal amendment oval. If your amended return does not report changes that result from the filing of a federal amended re turn or from a federal audit (for example, if the amended Massachusetts return is reporting a rental deduction not claimed on the original re turn) fill in only the Amended return oval. Other Jurisdiction Change If your amended return includes changes resulting from another state or jurisdiction audit or change, fill in the Other Jurisdiction change oval and enter date of change in the space provided. Amended return due to IRS BBA Partnership Audit If your amended return includes changes made due to an IRS BBA Audit, fill in the Amended re turn due to IRS BBA Partnership Audit oval. Consent to Extend the Time to Act on an Amended Return treated as Abatement Application In certain instances, an amended return show ing a reduction of tax may be treated by DOR as an abatement application. Under such circum stances, by filing an amended return, you are giv ing your consent for the Commissioner of Reve nue to act upon the abatement application after six months from the date of filing. See TIR 16-11. You may withdraw such consent at any time by con tacting the DOR in writing. If consent is withdrawn, any requested reduction in tax will be deemed de nied either at the expiration of six months from the date of filing or the date consent is withdrawn, whichever is later. Filing an Application for Abatement File an Application for Abatement only to dispute one of the following: ◗ Penalties ◗ Audit assessments ◗ Responsible person determinations For the fastest response time, file your dispute on line at mass.gov/masstaxconnect. If you cannot file online, use Form ABT. Visit mass.gov/dor/amend for additional informa tion about filing an amended return, or filing an application for abatement. Form 1 Frequent Errors Not entering the information below correctly may result in an item being adjusted or removed. ◗ Name – Enter your name as shown on your government-issued ID with the first, last and mid dle in the designated fields for each type. 2024 Form 1 Instructions 6
◗ Line 2c – You must fill in the bubble for each spouse over 65 and enter a “1” or “2” in the Total box accordingly. ◗ Line 3 – If you are a Massachusetts state, city, town, or county employee, you must report the State wages, tips etc. amount from box 16 of Form W-2. ◗ Line 14 – Enter the total qualified rent paid in 2024 in the box, then divide by 2. ◗ Line 38 – You must submit all documents that have Massachusetts withholding, including pass- through entity or K-1 withholding. ◗ Lines 39 and 40 – Be sure to differentiate any overpayment from 2023 as a credit carry forward on line 39 and do not list it as 2024 estimated tax payment on line 40. ◗ Line 44 – Schedule CB must be completed and submitted with your return. ◗ Line 49 – Excess Paid Family Leave withholding (PFML) is not the amount shown on your Form W-2. You must use the worksheet for line 49 to see if you qualify and to calculate the excess amount. Each taxpayer would need to have multiple W-2’s and to have paid PFML greater than $775.56 to qualify. Or, have paid on the gross amount of self-employment income, not the net. ◗ Schedules B, C, D – Entries should be positive values unless there is a box to mark to indicate a negative value. ◗ Schedule HC – You must complete and sub mit Schedule HC showing the subscriber number, member ID or group number from insurance card. Form 1095 is a federal form and cannot be used to report health care coverage in Massachusetts. Voluntary Contribution to State Election Campaign Fund You, and your spouse if filing jointly, may volun tarily contribute $1 each to the State Election Cam paign Fund. The purpose of this fund is to provide limited public financing for campaigns of eligible candidates for statewide and elective office. This contribution will not change your tax or reduce your refund. Veterans Benefits Fill in the appropriate oval(s) for you, and/or your spouse if married filing a joint return, if you are a veteran who served in the Armed Forces of the United States in active service as part of Operation Enduring Freedom, Operation Iraqi Freedom, Op eration Noble Eagle or Operation Sinai Peninsula and were discharged under honorable conditions and were domiciled for six months in Massachu setts immediately prior to entry into the Armed Forces. DOR will then forward the name and ad dress to the Department of Veterans’ Services and the adjutant general of the Massachusetts National Guard to verify eligibility for any benefits you may be entitled to. Deceased Taxpayer Be sure to fill in the appropriate oval if a taxpayer died during the taxable year. For further informa tion, refer to the section How Do I File a Dece dent’s Return? Under Age 18 If you are under age 18 as of January 1, 2025, be sure to fill in the oval(s). Name Change If you legally changed your name since the last time you filed a Massachusetts tax return, fill in the oval. Enclose a copy of your Social Security card or government-issued ID (i.e., driver’s license, passport, etc.) showing your new name. Failure to include this documentation could delay process ing of your return. Noncustodial Parent Fill in the oval if you are a noncustodial parent. A noncustodial parent is defined as a person who has a minor child, but does not live with the child. Note: If you are the biological parent of a child, but your parental rights have been terminated, you are not the noncustodial parent of that child. Schedule TDS. Inconsistent Filing Position Penalty Fill in the oval and enclose Schedule TDS, Tax payer Disclosure Statement, if you are disclosing any inconsistent filing positions. Schedule TDS is available on our website at mass.gov/dor. The in consistent filing position penalty (see TIR 06-5, § IV) applies to taxpayers that take an inconsis tent position in reporting income. These taxpay ers must “disclose the inconsistency” when filing their Massachusetts return. If such inconsistency is not disclosed, the taxpayer will be subject to a penalty equal to the amount of tax attributable to the inconsistency. This penalty is in addition to any other penalties that may apply. A taxpayer is deemed to have taken an “inconsis tent position” when the taxpayer pays less tax in Massachusetts based upon an interpretation of Massachusetts law that differs from the position taken by the taxpayer in another state where the taxpayer files a return and the governing law in that other state “is the same in all material respects” as the Massachusetts law. The Commissioner may waive or abate the penalty if the inconsistency or failure to disclose was attributable to reasonable cause and not willful neglect. Schedule FCI. Foreign Corporation Income Fill in the oval and enclose Schedule FCI (Foreign Corporation Income) if you are required to com plete and file Schedule FCI with your return. All tax payers with foreign corporation income (including Global Intangible Low-Taxed Income (GILTI)) must complete Schedule FCI. GILTI should be included in dividend income on Schedule B, Part 1, line 3. Detailed instructions for completing Schedule FCI are available on DOR’s website. See Schedule FCI and Instructions. Digital Assets Fill in the oval if at any time during 2024 you re ceived (as a reward, award, or payment for prop erty or services) a digital asset, or sold, exchanged, gifted, or otherwise disposed of a digital asset (or a financial interest in a digital asset). Digital assets include non-fungible tokens (NFTs) and virtual cur rencies, such as cryptocurrencies and stablecoins. Note: Lines without specific instructions are con sidered to be self-explanatory. a. Total Federal Income Enter your total federal income (from U.S. Form 1040, line 9). If married filing separately and liv ing in the same household for the last 6 months of 2024, each spouse must combine their income figures from their separate U.S. returns when completing this section, unless you did not live with your spouse on 12/31/2024 and were legally separated under a written separation agreement or a decree of separate maintenance. Do not combine your income figures if you are a victim of domestic abuse and living apart from your spouse at the time you file your return. If you did not have a requirement to file a U.S. re turn, you must enter 0 in this section. Note: Failure to enter this information will delay the processing of your return. b. Federal Adjusted Gross Income Enter your federal adjusted gross income (from U.S. Form 1040, line 11). If married filing sepa rately and living in the same household for the last 6 months of 2024, each spouse must com bine their income figures from their separate U.S. returns when completing this section, unless you did not live with your spouse on 12/31/2024 and were legally separated under a written separation agreement or a decree of separate maintenance. Do not combine your income figures if you are a victim of domestic abuse and living apart from your spouse at the time you file your return. If you did not have a requirement to file a U.S. re turn, you must enter 0 in this section. Note: Failure to enter this information will delay the processing of your return. 2024 Form 1 Instructions 7
Line 1. Filing Status Note: More than one filing status may apply to you. If so, you may wish to figure your taxes based upon more than one filing status to see which status is to your benefit. Be sure to select only one filing status. Fill in the if not using same filing status on the federal return oval if you and your spouse filed a joint federal return but are not filing a joint Massa chusetts return. For tax years beginning on or after January 1, 2024, a consistent filing requirement exists which requires married couples to file a joint Massachusetts return in any year in which they file a joint federal return. If one of the spouses does not have a Massachusetts filing requirement be cause their Massachusetts gross income does not exceed $8,000, an exemption applies where they may choose the married filing separate return sta tus. Generally, a joint Form 1 is not allowed unless both spouses were Massachusetts residents for the same portion of 2024. See TIR 24-4 for addi tional information. Single Fill in the Single oval if you were single as of De cember 31, 2024. This status applies to you if at the close of the taxable year you fit into any of the following categories: ◗ You were unmarried; ◗ You were a widow or widower whose spouse died before 2024; or ◗ You were legally separated under a final judg ment of the probate court. Note that you are not single if: ◗ You have obtained a judgment of divorce which has not yet become final; ◗ You have a temporary support order; or ◗ You and your spouse simply choose to live apart. Married Filing Joint Return Fill in the Married filing joint return oval if you were legally married as of December 31, 2024. Both spouses are responsible for the accuracy of all information entered on a joint return and both must sign. A joint return is allowed even if only one spouse had income or if one spouse died during 2024. For further information, refer to the section “What Are the Rules for Filing a Joint Return?” Married Filing Separate Return Fill in the Married filing separate return oval if you were legally married as of December 31, 2024, and if you and your spouse are not filing a joint return. Be sure to enter your spouse’s name and Social Security number in the space provided. If your spouse is a nonresident alien and does not have and is not required to have a Social Security number (SSN) or Individual Taxpayer Identifica tion Number (ITIN), fill in the NRA oval. Note: Only fill in the NRA oval if, on your U.S. 1040, you entered NRA in the space below the filing sta tus checkboxes to indicate that your spouse is a nonresident alien who does not have and is not re quired to have a SSN or ITIN. Head of Household Fill in the Head of household oval if you qualify to file this status federally. This status is for unmar ried people who paid over half the cost of keeping up a home for a qualifying person, such as a child who lived with you or your dependent parent. Be sure to include such qualifying person on Sched ule DI, Dependent Information. Certain married people who lived apart from their spouse for the last six months of 2024 and who meet all of the other federal requirements may also be able to use this status. See IRS Publication 501, Dependents, Standard Deduction, and Filing Information, for more information. Custodial Parent Fill in the Custodial parent who has released claim to exemption for child(ren) oval if you are claiming the head of household filing status and you have released your claim to one or more de pendent exemptions on U.S. Form 8332, or partic ipated in a decree or agreement to allow the non custodial parent to claim a dependency exemption. Whole Dollar Method Required DOR requires that the whole dollar method be used for entries made on forms or schedules. For exam ple, amounts between $1.00 and $1.49 should be entered as $1.00 and amounts between $1.50 and $2.00 should be entered as $2.00. However, calcula tions on worksheets used to reach amounts shown on the return may be made in one of two ways: ◗ Round amounts before adding them up and enter the resulting total on the form; or ◗ Add amounts to the penny, and then round to the whole dollar for entry on the form. Either method is acceptable as long as one method is used consistently throughout the return. Line 2. Exemptions Line 2a. Personal Exemptions Each taxpayer is entitled to claim a personal ex emption. The amount of your personal exemption depends on your filing status in line 1. ◗ If you are single or married filing a separate re turn, enter $4,400 in line 2a. ◗ If filing as head of household, enter $6,800 in line 2a. ◗ If married filing a joint return, enter $8,800 in line 2a. Line 2b. Number of Dependents You may claim a $1,000 exemption for each of your dependents if you claimed them on your U.S. return. Enter in the box in item b the number of de pendents you listed on U.S. Form 1040. Do not in clude yourself or your spouse. Then, multiply that total by $1,000 and enter the total amount in line 2b. Be sure to fill out Schedule DI, Dependent In formation, if you are claiming a dependent exemp tion(s). Failure to do so will delay the processing of your return. Note: Only one person (or married couple filing jointly) may claim the dependent exemption for any one child or other dependent. Line 2c. Age 65 or Over Before 2025 You are allowed an additional $700 exemption if you were age 65 or over before January 1, 2025. If your spouse was age 65 or over and you are filing a joint return, you may also claim a $700 exemp tion for your spouse. Fill in the appropriate oval(s) and enter the total number of persons age 65 or over in the small box. Multiply that total by $700 and enter the total in line 2c. Line 2d. Blindness Exemption You are allowed an additional $2,200 exemption if you are legally blind. If your spouse is also legally blind and you are filing a joint return, you may also claim a $2,200 exemption for your spouse. Fill in the appropriate oval(s) and enter the total number of blindness exemptions in the small box. Multiply that total by $2,200 and enter the total in line 2d. Legal Definition of Blindness You are legally blind and qualify for the blindness exemption if your visual acuity with correction is 20/200 or less in the better eye, or if your periph eral field of vision has been contracted to a 10-de gree radius or less, regardless of visual acuity. Line 2e. Medical/Dental Expenses You may claim an exemption for medical and den tal expenses paid during 2024 only if you itemized these expenses on your U.S. Form 1040, Sched ule A. If you are married filing a joint U.S. Form 1040, you must file a joint Massachusetts Form 1 to claim this exemption. Enter in line 2e the amount reported on your U.S. Form 1040, Sched ule A, line 4. Line 2f. Adoption Agency Fee If you paid adoption fees to a licensed adoption agency during 2024, you are eligible for an exemp tion of the total amount of the fees paid during the year. Fees paid during 2024 to an agency licensed to place children for adoption on account of the adoption process of a minor child regardless of whether an adoption actually took place during 2024 should also be included for this exemption. Enter this amount in line 2f. 2024 Form 1 Instructions 8
5.0% Income Note: DOR and the IRS maintain an extensive exchange program, routinely sharing computer tapes and audit results. Discrepancies between in come, deductions, and schedules reported feder ally and on this return, except those allowed under state law, will be identified and may result in a state audit or further investigation. Line 3. Wages, Salaries, Tips and Other Employee Compensation Report in line 3 total state wages and allocated tips from Form(s) W-2. Generally, your total wages and allocated tips will be the same amount reported on your U.S. Form 1040, line 1z. Note: Following are instances that require an ad justment to these amounts: Massachusetts Residents Working in a Foreign Country Income earned by a Massachusetts resident in a foreign country is subject to taxation in Massachu setts. If you excluded part or all of the compensa tion earned in a foreign country on your U.S. re turn (under IRC § 911), you must include any such amount in line 3 for Massachusetts tax purposes. State or Local Employees Contributing to Pension Plans If you are a Massachusetts state, city, town or county employee and contributed to your pension plan, enter in line 3 the Massachusetts W-2 state wage amount. This is generally box 16 of Form W-2. This amount will be higher than the U.S. amount because your pension contributions are excluded from your income for U.S. tax purposes. Contributions up to $2,000 per taxpayer may be deducted in lines 11a and/or 11b. Medicaid Waiver Payments To the extent included in Line 3, reduce line 3 by the amount of Medicaid waiver payments reported on U.S. Schedule 1, line 8. Line 4. Taxable Pensions and Annuities Income from most private pensions or annuity plans is taxable in Massachusetts. Certain gov ernment pensions, however, are exempt under Massachusetts law. In general, exempt pensions include contributory pensions from the U.S. Gov ernment or the Commonwealth of Massachusetts and its political subdivisions, and noncontributory military pensions. The following section describes some specific pensions which are exempt. If your pension is exempt, enter 0 in line 4 and note the source on the dotted line to the left. If your pension is not exempt, you should gener ally enter in line 4 the taxable amount reported on your U.S. Form 1040, line 5b. In some cases, how ever, Massachusetts law requires an adjustment to the federal amount. Distributions from annuity, stock bonus, pension, profit-sharing or deferred payment plans or contracts described in §§ 403(b) and 404 of the IRC must be adjusted to account for your contributions that have been previously taxed. Subtract from such income (as reported on your U.S. Form 1040, line 5a) the amount of your contributions which was previously taxed by Mas sachusetts until the total of your taxed contribu tions is received. If your pension falls into this cat egory, enter the adjusted amount in line 4. If you are receiving distributions from an IRA or Keogh plan, do not report the income here; instead, see the instructions for Schedule X, line 2. Note: Massachusetts does not tax Social Security income; therefore, you should not report such in come on Massachusetts Form 1. What pensions are exempt? ◗ Pension income received from a contributory annuity, pension, endowment or retirement fund of the U.S. Government or the Commonwealth of Massachusetts and its political subdivisions. ◗ Pension income from other states or their po litical subdivisions which do not tax such income from Massachusetts, or its political subdivisions must be reported in line 4. However, this income may be eligible for a deduction on Schedule Y line 13. Refer to the instructions for Schedule Y line 13 to determine eligibility for this deduction. ◗ Noncontributory pension income or survivor ship benefits received from the U.S. uniformed services (Army, Navy, Marine Corps, Air Force, Coast Guard, commissioned corps of the Public Health Service and National Oceanic and Atmo spheric Administration) are exempt from taxation in Massachusetts. ◗ Massachusetts state court judges who were appointed on or after January 2, 1975 are partic ipants in the Massachusetts contributory retire ment system and their pensions are nontaxable. State court judges who were appointed prior to January 2, 1975 receive taxable noncontribu tory pensions. If you retired under MGL ch 32, §§ 56–60 and are a veteran who began Massachusetts state service prior to July 1, 1939, all or part of your pension income may be subject to tax. If you elected to receive your proceeds from contributions in one lump-sum distribution, your original contributions to the retirement system are not taxable. Noncon tributory pension income received after a lump- sum distribution is fully taxable and should be re ported in line 4. How do I report lump-sum distributions? If you were an employee of the U.S., Massachu setts or one of its political subdivisions and left public employment prior to retirement, you are not required to report as income the lump-sum distribution of your previously-taxed pension contributions. Lump-sum distributions of qualified employee benefit plans in excess of the employee’s contribu tions which were previously subject to Massachu setts tax (or not previously excluded from Massa chusetts tax) must be reported in line 4. Generally, qualified rollovers are not taxable in Massachu setts to the extent they are not taxable on your U.S. return. Lump-sum distributions related to IRA/Keogh and Roth IRA distributions should be reported in Form 1, line 9, “Other Income (from Schedule X).” Rollover from a traditional IRA to a Roth IRA. Taxpayers are allowed to make partial or complete rollovers from existing IRAs to Roth IRAs. Any tax able portion of these rollovers included in federal gross income is also included in Massachusetts gross income, except for amounts previously sub ject to Massachusetts personal income tax. See Schedule X, line 2 instructions for further details. Line 5. Interest from Massachusetts Banks Enter in line 5 the total amount of interest received or credited to deposit accounts (term and time deposits, including certificates of deposit, savings accounts, savings shares, and NOW accounts) in Massachusetts banks. Do not subtract interest forfeited or penalties charged to you for early savings withdrawal. You will be al lowed to deduct these amounts on Schedule Y, line 2. All other interest, unless exempt, should be entered on Massachusetts Schedule B. Interest on an IRA/ Keogh is not taxable until distributed. Lines 6, 7 and 10 If showing a loss in lines 6, 7 or 10, be sure to mark over the X in the box to the left. Do not use parentheses or negative signs to indicate losses. Line 6a. Business/Profession Income or Loss Enter in line 6a the amount of income or loss from a business or profession from Massachusetts Schedule C, line 37. You must enclose Massachu setts Schedule C with this return. U.S. Schedule C is no longer allowed as a substitute for the Massa chusetts Schedule C. Note: Following the Code Update, you may not de duct an excess business loss (EBL) for tax year 2024. For federal purposes, your EBL, if any, is de termined using U.S. Form 461 and is added back to your income on U.S. Form 1040, Schedule 1, line 8p. You must also add back EBL to Massachu setts income. To do so, use Massachusetts Sched ule X, line 6. See instructions for that line for more information. 2024 Form 1 Instructions 9
Line 6b. Farm Income or Loss If you operate a farm as an individual or coop erative, enter in line 6b the amount of income or loss from operating a farm from U.S. Schedule F, Profit or Loss from Farming, line 34. Enclose a copy of U.S. Schedule F. Complete a pro forma U.S. Schedule F to report Massachusetts differ ences, such as bonus depreciation. Line 7. Rental, Royalty, REMIC, Partner ship, S Corporation, Trust Income or Loss Taxpayers with income or loss reported on a Schedule E must file his or her tax return using computer-generated forms produced by third- party software. The tax return may be generated by the taxpayer or by a tax professional. The tax payer is encouraged, but not required, to submit the return electronically. Paper forms produced using the third-party software product will con tain a two-dimensional (2D) bar code and will also be accepted. If the taxpayer hires an income tax preparer to complete the taxpayer’s taxes, the pre parer must follow the Commissioner’s electronic filing rules. See TIRs 08-22 and 16-9 for more information. If you do not have access to a software package when filing your 2024 income tax return, you may file your Schedule(s) E on paper. Visit our website at mass.gov/dor to download a paper copy of the 2024 Schedule(s) E, E-1, E-2, E-3 (and instruc tions) to file with your income tax return. Line 8a. Unemployment Compensation If you received unemployment compensation, enter in line 8a the amount from U.S. Form 1040, Schedule 1, line 7. If you elected voluntary with holding of Massachusetts state income taxes on your unemployment compensation, be sure to in clude the amount of Massachusetts state income tax withheld, as reported on Form 1099-G, on Form 1, line 38b. Note: DOR routinely matches the amounts in line 8a with files from the Division of Unemployment Assistance. Line 8b. Massachusetts State Lottery Winnings Enter in line 8b net winnings (total winnings minus cost of winning ticket(s)) from the Massachusetts state lottery. Do not enter less than 0. You may only deduct the price of your winning ticket. Lot tery losses claimed as itemized deductions on U.S. Form 1040, Schedule A are not allowed on your Massachusetts return. Note: DOR routinely matches the amounts in line 8b with files from the Lottery Commission. Line 9. Other Income (from Schedule X) Taxable Alimony Received, Taxable IRA/Keogh and Roth IRA Conversion Distributions, Other Gambling Winnings, Fees, Excess Business Loss Adjustment, and Other 5.0% Income and PFML taxable distributions. “Other 5.0% income” includes the items listed above and must be included on Schedule X. Enter the total from Schedule X, line 7. Not less than 0. Be sure to enclose Schedule X with your return. Failure to enclose this schedule will delay the processing of your return. Deductions Lines 11 through 15 Massachusetts allowable deductions differ from itemized deductions on Schedule A of U.S. Form 1040. You may claim only the deductions speci fied on Massachusetts Form 1, lines 11 through 14 and Schedule Y. You are not allowed to deduct amounts unless they are directly related to income that is subject to taxation and reported on Massachusetts Form 1. Line 11. Amount Paid to Social Security (FICA), Medicare, Railroad, U.S. or Massachusetts Retirement Systems If you have paid into any of the retirement systems listed above during 2024, you may deduct those contributions, up to a maximum of $2,000. Enter in lines 11a and 11b the amount you, and your spouse if filing jointly, paid to Social Secu rity (FICA), Medicare or Railroad Retirement and the U.S. or Massachusetts retirement systems during 2024 as shown on your Form W-2, but not more than $2,000 each. Payment amounts may not be combined or transferred from one spouse to the other. Be sure to add any amount of Medi care tax withheld as shown on Form W-2 and any amount of self-employment tax as reported on your U.S. Form 1040 to the amount of Social Se curity tax withheld, the total not to exceed $2,000 per person. Note: Medicare premiums deducted from your Social Security or retirement payments are not deductible. Payments to an IRA, Keogh, Simplified Employee Pension Plan (SEP), or Savings Incentive Match Plan for Employees (SIMPLE) Account are not de ductible for Massachusetts income tax purposes. Line 14. Rental Deduction You may be entitled to a rental deduction equal to one-half (50%) of the rent you paid during 2024 (up to a maximum of $4,000 per return) for your principal residence in Massachusetts. Enter the total amount of qualified rent paid by you during 2024 in line 14a. Divide line 14a by 2 and enter the result, or $4,000 ($2,000 if married filing a sepa rate return), whichever is smaller, in line 14. Note: This deduction amount does not apply to your U.S. tax return. What Qualifies for the Rental Deduction? The deduction must be for rent you paid to a land lord for the rental or lease of your principal resi dence in Massachusetts. If two or more persons jointly rent a unit, each occupant using it as his/ her principal residence is entitled to a deduction based on the amount of rent that each person paid. If the rent is paid by a third party (such as a parent) who maintains a principal residence elsewhere, no 50% rental deduction is allowed for either party. A principal residence does not include any resi dence for vacation, an apartment for a person on a temporary assignment or a student or faculty member who has a principal residence elsewhere. It also does not include any apartment or house in Massachusetts of a nonresident who has a res idence in another state or country. Payment for occupying a hotel, motel or rooming house is not considered rent unless a rental agreement exists. Nor are payments by a tenant-stockholder of a co operative housing corporation to the corporation and payments by an owner of a condominium unit to the condominium association considered rent. All separately stated charges such as utilities, fur nishings or parking cannot be included in rent for purposes of this deduction. Also, rent does not include any advance payments (such as security deposit, last month’s rent, etc.) until actually ap plied as rent. How Do I Calculate My Rental Deduction If I Am Married Filing Separately? If married taxpayers file separate returns, they are each entitled to a rental deduction equal to 50% of the rent each pays, not to exceed $2,000 per return. However, a married couple filing sepa rately may allocate the rent deduction differently, provided the amount taken by each spouse does not exceed 50% of the rent actually paid by that spouse, and provided their combined rental de ductions do not exceed $4,000. If the allocation results in one spouse claiming a deduction in ex cess of $2,000, that spouse must enclose with his/ her return a statement signed by the other spouse 2024 Form 1 Instructions 10
indicating consent to the allocation. The statement must contain the name, address and Social Se curity number of the consenting spouse and the amount of rental deduction taken by that spouse. Line 15. Other Deductions (from Schedule Y) Enter the total from Schedule Y, line 19. Be sure to enclose Schedule Y with your return. Failure to do so will delay the processing of your return. Line 17. 5.0% Income After Deductions Subtract line 16 from line 10. Enter the result in line 17. If line 16 exceeds line 10, enter 0 in line 17. Line 19. 5.0% Income After Exemptions Subtract line 18 from line 17. If line 18 exceeds line 17, enter 0 in line 19. If line 18 exceeds line 17 and you received inter est income (other than interest from Massachu setts banks), dividends or capital gain income, complete the Schedule B, Line 36 and Schedule D, Line 20 Worksheet, if applicable. All others pro ceed to line 20. Schedule B, Line 36 and Schedule D, Line 20 Worksheet. Excess Exemptions from Interest and Dividend Income, 8.5% and 12% Income and Long-Term Capital Gain Income (Only if Single, Head of Household, or Married Filing Jointly) If your total exemptions in Form 1, line 18 are more than the amount of your 5. 0% income after deduc tions in Form 1, line 17, the excess may be applied against any interest and dividend income and in come taxed at 8. 5% or 12%. Any remaining excess amount may then be applied against any long-term capital gain income. Complete this worksheet only if Form 1, line 17 is less than Form 1, line 18 and you received interest income (other than interest from Massachusetts banks), dividends or capital gain income to determine if you qualify for the ex cess exemption. Enter all losses as 0. 1. Enter amount from Schedule B, line 35. Not less than 0. . . . . . . . . . . . . . . . . . 2. Enter amount from Form 1, line 18. . . . . . . . . . . . . . . 3. Enter amount from Form 1, line 17. . . . . . . . . . . . . . . 4. Subtract line 3 from line 2. If 0 or less, you do not qualify for this exemption. Omit remainder of worksheet. . . . . . . . . . . . . . . . . 5. Excess exemptions applied against interest and dividend income and 8. 5% or 12% income. If line 1 is larger than line 4, enter line 4 here and in Sched ule B, line 36. If line 4 is equal to or larger than line 1, enter line 1 here and in Schedule B, line 36. Complete lines 6 through 8. . . . . . . . . . . . . . . . . . . 6. Subtract line 5 from line 4. If 0, omit remainder of worksheet. . . . . . . . . . . . . . . . . . . 7. Enter Schedule D, line 19. Not less than 0. . . . . . . . . . . . 8. Excess exemptions applied against long-term capital gain income. If line 7 is larger than line 6, enter line 6 here and in Schedule D, line 20. If line 6 is equal to or larger than line 7, enter line 7 here and in Schedule D, line 20 . . . . . . . . . Line 20. Interest and Dividend Income If you have any interest income other than interest from deposits in banks located in Massachusetts, dividend income, certain capital gains or losses, or any adjustments to interest income (other than interest from Massachusetts banks), you must complete Schedule B. Be sure to enclose Massa chusetts Schedule B. To determine if you need to file Schedule B, refer to the Schedule B instruc tions in this booklet. Enter in line 20 the amount from Schedule B, line 38. Tax on 5.0% Income Line 22. 5.0% Tax (from tax table) If line 21 is less than $24,000, find the proper tax by using the tax tables found in the back of this booklet. If line 21 is greater than $24,000 multiply by 0.05 and enter the result in line 22. Note: Personal income tax forms must provide an election to voluntarily pay tax at a rate of 5.85% on taxable income which would otherwise be taxed at a rate of 5.0%. The election to pay tax at the rate of 5.85% does not apply to items of income taxed at 8.5% (short-term capital gains) and 12% (gains on collectibles). If choosing the optional 5.85% tax rate, multiply line 21 and Schedule D, line 21 by 0.0585 and fill in the oval. 8.5% and 12% Income & Tax Line 23a. 8.5% Income from Certain Capital Gains Enter in line 23a the amount from Schedule B, line 39. Multiply this amount by 0.085 (8.5%) and enter the tax in line 23. Line 23b. 12% Income from Certain Capital Gains Enter in line 23b Capital Gains taxed at 12%. Mul tiply this amount by .12 (12%) and enter the tax in line 23b. Be sure to enclose Massachusetts Schedule B. To determine if you need to file Schedule B, refer to the Schedule B instructions in this booklet. Tax on Long-Term Capital Gains Line 24. Schedule D (Long-Term Capital Gains and Losses Excluding Collectibles) Enter in line 24 the amount from Schedule D, line 22, but not less than 0. To determine if you need to file Schedule D, refer to the Schedule D instruc tions in this booklet. Excess Exemptions If excess exemptions were used in calculating lines 20, 23 or 24 (see Schedule B, line 36 and/ or Schedule D, line 20), be sure to fill in the oval in line 24. Line 25. Credit Recapture Amount If any Brownfields Credit (BC), Economic Oppor tunity Area Credit (EOA), Low-Income Housing Credit (LIH) or Historic Rehabilitation Credit (HR) property is disposed of or ceases to be in qualified use prior to the end of its useful life, the difference between the credit taken and the total credit al lowed for actual use must be added back to your tax on Form 1. Complete and enclose Schedule CRS, Credit Recapture Schedule. Line 26. Additional Tax on Installment Sale An addition to tax applies for taxpayers who have deferred the gain, and the tax associated with that gain, on certain installment sales. This addition to tax is measured by an interest charge on the tax that has been deferred. Include in line 26 an additional tax amount rep resenting an interest charge on the deferred tax on gain from certain installment sales with a sales price over $150,000 if you are not a dealer and the aggregate face amount of installment obligations arising during the tax year and outstanding as of the close of the tax year exceeds $5 million. For more information see MGL ch 62C, § 32A (a) and IRC § 453A (a)–(c). Also include in line 26 an additional tax amount representing an interest charge on the deferred gain from the installment sale of timeshares and residential lots, if the sale meets one of the follow ing criteria: ◗ The sale is of a timeshare right for six weeks or less; ◗ The sale is for the recreational use of specified campgrounds; or ◗ The sale is for a residential lot and neither the dealer nor someone related to the dealer is obli gated to make any improvements on the lot. 2024 Form 1 Instructions 11
Note: If you have installment sales occurring be tween January 1, 1996 and December 31, 2002, you must complete and submit Schedule D-IS. For more information see MGL ch 62C, § 32A (b) and IRC § 453(l)(2)(B). If you are a partner in a partnership or a share holder in an S corporation, the entity is required to send you the information you need to calculate the addition to tax under this provision. To the extent practicable, Massachusetts follows federal income tax rules in determining the de ferred gain from installment sales subject to the interest-charge addition to tax. For more informa tion, visit DOR’s website at mass.gov/dor and IRS Publication 537. Massachusetts Adjusted Gross Income (AGI) No Tax Status. Single, Married Filing a Joint Return or Head of Household Only If your Massachusetts AGI was $8,000 or less if single, $14,400 or less plus $1,000 per depen dent if head of household, or $16,400 or less plus $1,000 per dependent if married filing a joint re turn, you qualify for No Tax Status and are not re quired to pay any Massachusetts income taxes. Limited Income Credit. Single, Married Filing a Joint Return or Head of Household Only If you do not qualify for No Tax Status, but you are single and your Massachusetts AGI is between $8,000 and $14,000, or if you are filing as head of household and your Massachusetts AGI is be tween $14,400 and $25,200 plus $1,750 per de pendent, or if you are married filing a joint return and your Massachusetts AGI is between $16,400 and $28,700 plus $1,750 per dependent, you may qualify for the Limited Income Credit. This credit is an alternative tax calculation that can result in a significant tax reduction for people whose income is close to the No Tax Status threshold. Massachusetts AGI Massachusetts AGI is not the same as taxable in come. Massachusetts AGI includes: ◗ Wages, salaries, tips; ◗ Taxable pensions and annuities; ◗Pension income from another state or political subdivision before any deduction; ◗ Taxable IRA/Keogh and Roth IRA distributions; ◗ Fees and unemployment compensation; ◗ Income or loss from a business or profession; ◗Income or loss from partnerships, S corpora tions and trusts; ◗ Rents, royalties and REMIC income; ◗ Taxable alimony and other 5.0% income; ◗ Interest from Massachusetts banks; and ◗ Other interest, dividends, and capital gains. Complete the Form 1, Line 27 Massachusetts AGI Worksheet to see if you may qualify for the Col lege Tuition Deduction (Schedule Y, line 11), No Tax Status or the Limited Income Credit. Form 1, Line 27 Massachusetts AGI Worksheet. No Tax Status (Only If Single, Head of Household or Married Filing Jointly) 1. Enter your total 5. 0% income from Form 1, line 10. Not less than 0. (Add back any Abandoned Building Renovation deduction claimed on Schedule(s) C and/or E before entering an amount in line 1. ). . . . 2. Add Schedule Y, lines 2 through 9b and line 10 . . . . . . . . 3. Subtract line 2 from line 1. Not less than 0. . . . . . . . . . 4. Reserved. . . . . . . . . . . . . . . . . 5. Enter amount from Schedule B, line 35. If there is no entry in Schedule B, line 35 or if not filing Schedule B, enter the amount from Form 1, line 20. . . . . . . . . . . 6. Enter the amount from Schedule D, line 19. Not less than 0. (If filing Schedule D-IS, Installment Sales, see the Schedule D-IS instructions, available at mass. gov/dor, for the amount to enter in line 6. ) . . . . . . . . . . . . . . . . . . . . . 7. Add lines 3 through 6 . . . . . . . If you are single and the total in line 7 is $8,000 or less, you qualify for No Tax Status. Fill in the oval in line 27, enter 0 in line 28 and omit lines 29 through 31. Also, enter 0 in line 32 and complete Form 1. However, if there is an amount entered in line 25, Credit Recapture Amount and/or line 26, Additional Tax on Installment Sales, enter that amount in line 28 and complete line 31. If you are single but do not qualify for No Tax Status, and your total in line 7 is $14,000 or less, complete Form 1, line 28 and see Form 1, line 29 instructions for the Limited Income Credit. If you are filing as head of household or married filing a joint return, compare line 7 with the No Tax Status/Limited Income Credit Chart to see if you may qualify for No Tax Status or the Limited In come Credit. Line 27. No Tax Status If you qualify for No Tax Status, fill in the oval in line 27, enter 0 in line 28 and omit lines 29 through 31. Also, enter 0 in line 32 and complete Form 1. However, if there is an amount entered in line 25, Credit Recapture Amount and/or line 26, Addi tional Tax on Installment Sale, enter that amount in line 28 and complete line 31. 2024 Form 1 Instructions 12 No Tax Status/limited Income Credit Chart Filing status: Number of dependents (from Form 1, line 2b): Head of household. Line 7 of the AG/ worksheet is less than or equal to:
Married filing a joint return. Line 7 of the AG/ worksheet is less than or equal to: a $14,400 $25,200 $16,400 $28,700 1 15,400 26,950 17,400 30,450 2 16,400 28,700 18,400 32,200 3 17,400 30,450 19,400 33,950 4 18,400 32,200 20,400 35,700 5 19,400 33,950 21,400 37,450 6 20,400 35,700
22,400 39,200 you qualify for No Tax Status you may qualify for the Limited Income Credit you qualify for No Tax Status you may qualify for the Limited Income Credit If the number of dependents is more than 6, add $1,000 per dependent to the No Tax Status column, or $1,750 per dependent to the Limited Income Credit column. If you qualify for No Tax Status, fill in the oval in line 27, enter "0" in line 28 and omit lines 29 through 31. Also, enter "0" in line 32 and complete Form 1. However, if there is an amount entered in line 25, Credit Recapture Amount and/or line 26, Additional Tax on Installment Sales, enter that amount in line 28 and complete line 31. To see if you may qualify for the Limited Income Credit, go to line 28 and complete the worksheet for line 29.
Note: If married filing separately, you do not qual- ify for No Tax Status. Line 28. Total Tax Line 28a. Income Tax Add lines 22-26 and enter the total in line 28a. Line 28b. 4% Surtax Enter in line 28b the amount from line 7 of the Schedule 4% Surtax. The 4% surtax applies to Massachusetts residents on the portion of their annual taxable income ex- ceeding $1,053,750 and to non-residents on the portion of their annual taxable income sourced to Massachusetts that exceeds $1,053,750. Line 28 Add lines 28a and 28b , enter the total in line 28. Line 29. Limited Income Credit Complete the Form 1, Line 29 Worksheet to see if you may qualify for the Limited Income Credit. Form 1, Line 29 Worksheet. Limited Income
Credit (Only if Single, Head of Household, or Married Filing Jointly) 1. Enter amount from line 7 of Massachusetts AGI Worksheet . . . . . . . . . . . . . . . . . . 2. Enter $8,000 if single . If married filing a joint re- turn or head of household, enter the amount from the No Tax Status column of the No Tax Status/Limited Income Credit chart . . . . . . . . . . 3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . 4. Enter in line 4 the amount of tax from Form 1, line 28 less any Credit Recapture Amount entered in line 25 and/or Additional Tax on Installment Sales in line 26 . . 5. Multiply line 3 by 10% ( .10) . . . . . . . . . . . . . . . . . . . . . . 6. If line 4 is smaller than line 5, you are not eligible for this credit . Enter 0 . If line 4 is larger than line 5, subtract line 5 from line 4 and enter result here and on Form 1, line 29 . . . . . . . . . . . Line 30. Taxes Due Any Other State If any of the income reported on this return is sub- ject to taxation in another state or jurisdiction and you have filed a return and paid taxes in the other state or jurisdiction, complete the following work- sheet and enter the amount of credit in line 30. Do not include taxes paid to the U.S. government. (This credit does not apply to city or local taxes.) You are allowed to claim a credit for taxes due to the following jurisdictions: ◗ Other states in the U.S., including payments made under the Rhode Island Temporary Disabil- ity Insurance Act (see DOR Directive (DD) 12-1); ◗ Any territory or dependency of the U.S. (includ- ing Puerto Rico, the Virgin Islands, Guam, the Dis- trict of Columbia); or ◗ The Dominion of Canada or any of its provinces (less any U.S. credit amount allowable from U.S. Form 1116). The total credit that you calculate on the work- sheet is the smaller of the amount of taxes due to other jurisdictions (net of certain adjustments) or the portion of your Massachusetts tax due on your gross income that is taxed in such other jurisdictions. Credit is not given for a property tax due to another jurisdiction on account of capital stock or property. This does not refer to a tax on gain or income from the sale of capital stock or property, as included on Schedule B or Schedule D. Credit is also not given for any interest and penalties paid on a tax due to another jurisdiction. Note: For questions on the Pass-through Entity Tax credit and its effect on this credit, refer to DOR Directive 19-1. For residents that are subject to the 4% surtax and that paid tax in another jurisdiction, complete the online Schedule OJC worksheet(s). You must complete separate worksheets if you had 5.0% income and interest income (other than interest from Massachusetts banks), dividends or capital gain income taxed by another jurisdiction. If you use this worksheet to calculate a credit for interest income (other than interest from Massa- chusetts banks), dividends or capital gain income, substitute interest income (other than interest from Massachusetts banks), dividends or capital gain income for 5.0% income in line 1 of the work- sheet. You must also substitute Schedule B, line 7 (interest and dividend income) and Schedule B, line 13c (taxable 8.5% and 12% capital gains) or Schedule D, line 13, (gross long-term capital gains and losses), but not less than 0, for Form 1, line 10 in line 2 of the worksheet, and the total of Form 1, line 20 multiplied by 0.05 (tax on interest and divi- dend income) and Form 1, line 23 (8.5% and 12% tax) or line 24 (tax on long-term capital gains) for Form 1, line 19 in line 4 of the worksheet. If completing multiple worksheets, the amount calculated as an Other Jurisdiction Credit on each worksheet should be combined for the total allow- able Other Jurisdiction Credit. Online worksheets are available. See https://www.mass.gov/info-de- tails/learn-about-the-income-tax-paid-to-another- jurisdiction-credit. ◗ When using the worksheet to calculate credit for interest income (other than interest from Massachusetts banks), dividends or capital gain income, enter in line 1 such income taxed in an- other jurisdiction calculated as if it was earned in Massachusetts. ◗ If you choose to pay the optional 5.85% tax rate, substitute 0.0585 for 0.05 in line 4 of the worksheet. Note: Be sure to complete and enclose Sched ule OJC, Income Tax Due to Other Jurisdic tions, and enter the two-letter state or juris dictional postal code for each state or jurisdic tion for which you are taking the credit. Tax payers from a territory or dependency of the U.S., or the Dominion of Canada or any of its provinces, must enter “FC” as the postal code. Form 1, Line 30 Worksheet for Taxes Due Any Other State 1. Enter the total 5. 0% income included in Form 1, line 10 subject to income tax in another jurisdiction. . . . . . . . . . . . . . . . . . 2. Enter the total of Form 1, line 10. . . . . . . . . . . . . . . 3. Divide line 1 by line 2. Not greater than 1. . . . . . . . . . . . . 4. Multiply Form 1, line 19 by 0. 05. . . . . . . . . . . . . . . . . . 5. Enter any Limited In- come Credit from Form 1, line 29. . . . . . . . . . . . . . . . . . . . . . 6. Subtract line 5 from line 4. . . . . . . . . . . . . . . . . . . . . . . 7. Multiply line 6 by line 3. . . . . 8. Enter the amount of tax due to another jurisdiction on income also reported on this return before credits and payments. This includes pay ments made under the Rhode Island Temporary Dis ability Insurance Act, if applicable. If you are claiming a credit for tax due to Canada or a Province of Canada, the amount reported on this line must be reduced by the amount claimed as a foreign tax credit on U. S. Form 1040, Schedule 3, line 1. . . . . . . . 9. Enter the smaller of lines 7 or 8 here and on Form 1, line 30. . . . . . . . . . . . . . . . . . . . . . Line 31. Other Credits (from Schedule CMS) Enter the total from Schedule CMS, Credit Man ager Schedule. Be sure to enclose Schedule CMS with your return. Failure to do so will delay the pro 2024 Form 1 Instructions 13
cessing of your return or result in the credit being adjusted or disallowed. Line 33. Voluntary Contributions You may contribute any amount you choose to the following funds. Remember, these amounts are added to your tax. They increase the amount of your payment or reduce the amount of your refund. a. Endangered Wildlife Conservation. The Natu ral Heritage and Endangered Species Fund is ad ministered by the Division of Fisheries and Wild life. Contributions are used to protect and restore rare and endangered wildlife and plants, and their habitats. This fund has helped restore and con serve in the Commonwealth populations of the Bald Eagle, Hessel’s Hairstreak Butterfly, the Red belly Turtle and the Plymouth Gentian. b. Organ Transplant Fund. The Organ Transplant Fund is administered by the Massachusetts De partment of Public Health. All contributions re ceived by the Fund assist patients with the costs of medications without which they might lose their transplanted organs. For information on how to become an organ donor, visit the Registry of Motor Vehicle’s website at mass.gov/rmv. c. Massachusetts Public Health HIV and Hepa titis Fund. The Massachusetts Public Health HIV and Hepatitis Fund is administered by the Mas sachusetts Department of Public Health. Contri butions are used for research, experimental treat ment and education related to Acquired Immune Deficiency Syndrome (AIDS). Massachusetts residents living with AIDS receive experimental treatment through clinical trials which are wholly supported with this Fund. The Fund also educates people with AIDS about treatment options and how to gain access to medication and experimen tal treatment. d. Massachusetts United States Olympic Fund. Contributions to this fund are used to assist Mas sachusetts residents in paying all or part of any costs associated with the development, mainte nance and operation of the United States Olym pic Team participating in the Olympics and the United States Paralympic Team participating in the Paralympics. e. Massachusetts Military Family Relief Fund. The Massachusetts Military Family Relief Fund Is administered by the Friends of Massachusetts Na tional Guard and Reserve Families. Contributions to this fund are used to help members of the Mas sachusetts National Guard and Massachusetts residents who are members of the reserves of the armed forces of the United States and who have been called to active duty after the September 11, 2001 terrorist attacks, and their families, to defray the costs of food, housing, utilities, medical ser vices, and other expenses. f. Homeless Animal Prevention and Care Fund. The Homeless Animal Prevention and Care Fund is administered by the Department of Agricultural Resources. Contributions will help animals by re ducing the number of homeless cats and dogs by spaying, neutering and vaccinating animals in shelters and animal control facilities and assist ing families who would not otherwise be able to afford these services for their pets. The Fund also provides training to municipal animal control offi cers so that they can safely and effectively protect animals and people in their communities. Line 34. Massachusetts Use Tax Due On Internet, Mail Order and Other Out-of- State Purchases Made in 2024 If you purchased taxable tangible personal prop erty out of state, over the Internet or from a catalog and did not pay Massachusetts sales tax at pur chase, a Massachusetts use tax is due. If an item is exempt from sales tax (such as food, or clothing that costs $175 or less), it is exempt from use tax. If you paid a sales or use tax to another state or territory of the United States when purchasing this item, you are generally entitled to a credit against the Massachusetts use tax, up to 6.25%. See TIR 03-1 for more information. No credit is allowed for a value-added tax (VAT) paid to another country. The following are items that are often purchased without paying sales tax. Residents owe use tax based on the purchase price. ◗ Electronics ◗ Software ◗ Appliances ◗ Computers ◗ Furniture ◗ CDs and DVDs ◗ Jewelry ◗ Video games ◗ Books ◗ Carpet ◗ Artwork ◗ Antiques For example: ◗ You purchased several DVDs on the Internet for $100 and paid no sales tax. Your use tax liability to Massachusetts on these items is $6.25 ($100 x .0625 = $6.25). ◗ You purchased a computer for $1,550 from a seller located outside of Massachusetts and paid no sales tax. Your use tax liability to Massa chusetts on this item is $96.88 ($1,550 x .0625 = $96.88). Taxpayers may choose the safe-harbor option for purchases of individual items each having a total sales price of less than $1,000. The safe-harbor provision makes it easier to comply with the use tax law by allowing taxpayers to self-report an es timated amount of use tax based on the average amount of online and/or out of state purchases a taxpayer in their income bracket would likely make during the year. Taxpayers do not need to keep re ceipts with safe-harbor reporting and will not be assessed additional use tax if audited, even if the actual amount of use tax due is greater than the safe-harbor amount reported. Mass. AGI per return* Use tax liability $ 0 – $ 25,000 $ 0 25,001 – 40,000 $20 40,001 – 60,000 $31 60,001 – 80,000 $44 80,001 – 100,000 56 If the Massachusetts AGI per return* is more than $100,000, multiply by .000625. *From line 7 of Massachusetts AGI worksheet. If you did not purchase any items with a total sales price of $1,000 or more, you may enter the safe-harbor amount from the table above directly on Form 1, line 34. Complete the following Form 1, line 34 Worksheet to calculate your use tax if you are not reporting a safe-harbor amount or if you purchased any individual items with a sales price of $1,000 or more. If you did purchase items with a sales price over $1,000 and you are reporting a safe-harbor amount, add the amount from the worksheet line 4 to the safe-harbor amount. Form 1, Line 34 Worksheet. Use Tax Due on Internet, Mail Order and Other Out-of-State Purchases 1. Total of purchases in 2024 subject to Massachusetts use tax. . . . . . . . . . . . . . . . . . . . . 2. Use tax. Multiply line 1 by . 0625 (6. 25%). . . . . . . . . . . . . 3. Credit for sales/use tax paid to other states or ju risdictions. Add the amount of any sales/use tax paid to another state or jurisdiction, or 6. 25% of the sales price, whichever is less, on each purchase reported in line 1. . 4. Total amount due. Subtract line 3 from line 2. Not less than 0. Enter here and on Form 1, line 34. . . . . Line 35. Health Care Penalty If you are subject to the Health Care Penalty for 2024 and are not appealing the application of the penalty, enter the penalty amount from line 8 of the Health Care Penalty Worksheet in line 35a for you and/or line 35b for your spouse. 2024 Form 1 Instructions 14
If married filing a joint return and both you and your spouse are subject to the penalty, separate Health Care Penalty Worksheets must be filled out to calculate the separate penalty amounts for you and your spouse, using your married filing jointly income. A taxpayer who does not have health insurance that meets the Massachusetts standard of min imum creditable coverage may be subject to a Massachusetts penalty. Enter the total of lines 35a and 35b in line 35, but not less than 0. Be sure to enclose Schedule HC with your re turn. Failure to do so will delay the processing of your return. Line 36. Overpayment from Original Return (amended return only) Include the amount listed on line 51 of your orig inal return. Line 38a. Massachusetts Income Tax Withheld from Form(s) W-2 Add the amounts shown as Massachusetts in come tax withheld on your Form(s) W-2. Enter the total on line 38a. The amount withheld should be shown in box 17 of Form W-2. Enclose your Form(s) W-2 with your return. Line 38b. Massachusetts Income Tax Withheld from Form(s) 1099 Include on line 38b any Massachusetts income tax withheld on your Form(s) 1099-R. The amount withheld should be shown in box 14. Enclose your Form(s) 1099-R with your return if Massachusetts income tax was withheld. If you received a Form 1099 showing Massachu setts income tax withheld on dividends, taxable or tax-exempt interest income, unemployment com pensation, or other income you received, include the amount withheld in the total on line 38b. This should be shown in box 14 of Form 1099. Note: Include on line 38b any tax withheld that is shown on Form PWH WA (Performer Withholding). Line 38c. Massachusetts Income Tax Withheld from Other Forms The amount withheld should be shown in box 15 of Form W-2G. Enclose Form(s) W-2G with your return if Massachusetts income tax was withheld. Note: Include on line 38c any Massachusetts in- come tax withheld that is shown on a Massachu setts Schedule K-1. Line 39. 2023 Overpayment Applied to Your 2024 Estimated Tax Include the exact amount of any 2023 overpay ment you applied to your 2024 estimated taxes from your 2023 Massachusetts Form 1, line 52 or Form 1-NR/PY, line 56. Do not include any 2023 refund in this line. Line 40. 2024 Massachusetts Estimated Tax Payments If you paid Massachusetts estimated income tax for 2024, enter in line 40 the total of all Massachu setts estimated tax payments. Be sure to include any last quarter (of 2024) payment made on or before January 15, 2025. Do not include any 2023 overpayment applied to your 2024 estimated tax. Every resident who expects to pay more than $400 in Massachusetts income tax on income which is not covered by Massachusetts withholding must pay Massachusetts estimated taxes. Estimated tax payments can be made online by using MassTax Connect by visiting mass.gov/dor or by filing Mas sachusetts Form 1-ES. Income that is not subject to withholding includes: ◗ Salaries and wages where the employer is not subject to Massachusetts withholding; ◗ Dividends and interest, including interest from Massachusetts banks; ◗ Gains from capital assets; ◗ Income from an individual trade, business or profession; ◗ Income from any estate or trust not taxed directly; ◗ Certain pensions; ◗ Taxable Keogh or IRA distributions (only if you elected not to have federal withholding); ◗ Rental, royalty or REMIC income; ◗ Unemployment compensation (from which no Massachusetts income tax was withheld); ◗ Taxable alimony received; ◗ Distributions from SIMPLE accounts; ◗ Illegal income; and ◗ Any other income received while a Massachu setts resident from which Massachusetts tax will not be withheld. Generally, the first payment must be filed on or before April 15 of the taxable year. The estimated tax may be paid in full with the first payment or in four installments on or before April 15, June 15, September 15 of the current taxable year and Jan uary 15 of the following year. You may verify estimated tax payments that have already been made through your MassTaxCon nect account. If you don’t have a MassTaxCon nect account, you can sign up at www.mass.gov/ masstaxconnect. You may request your employer to withhold ad ditional amounts from your salary on Form M-4, Massachusetts Employee’s Withholding Exemp tion Certificate to cover the taxes on other in come so that you do not have to file and pay es timated taxes. If 80% of the tax is not paid throughout the year through withholding and/or estimated payments, a penalty may be imposed. Line 41. Payments Made with Extension If you filed Massachusetts Form M-4868, Appli cation for Automatic Six-Month Extension of Time to File Massachusetts Income Tax Return, or made an electronic extension payment for 2024 on or before April 15, 2025, enter in line 41 the amount you paid with Massachusetts Form M-4868. Line 42. Payments Made with Original Return (amended return only) Use this line only if you are amending the original return. Enter in line 42 the amount of tax you paid with the original return from line 54, “Tax Due.” If estimated tax payments were made on the orig inal return, they should be reflected on line 40, as on the original return. Select the appropriate Amended return oval on page 1. Complete the entire return, correct the appropriate line(s) with the new information and recompute the tax liabil ity. On an enclosed sheet, explain the reason for the amendment(s) and identify the line(s) and amount(s) being changed on the amended re turn. Mail the amended return to Massachusetts Department of Revenue, PO Box 7000, Boston, MA 02204. If you owe additional tax, mail the amended return to Massachusetts Department of Revenue, PO Box 7003, Boston, MA 02204. Line 43. Earned Income Credit The Earned Income Credit (EIC) is a tax credit for certain taxpayers who work and have earned in come under $66,819 (maximum amount may be lower depending on filing status and number of eligible children). Taxpayers who qualify for and claim the federal EIC are allowed a refundable credit equal to 40% of the federal amount. If the credit due the taxpayer exceeds the amount of the total income tax payable for the year by the tax payer, the excess amount of the credit will be re funded to the taxpayer without interest. You must enter the number of qualifying children, if any, in line 43a. Then, enter in line 43b the federal EIC amount from your U.S. Form 1040, line 27. Mul tiply this amount by 0.40 (40%) and enter the result in line 43. Be sure to fill out Schedule DI, Dependent Information, if you are claiming this credit for one or more qualifying children/depen dents. Failure to do so will delay the processing of your return. 2024 Form 1 Instructions 15
If you choose to have the IRS compute your fed eral EIC, wait until the IRS notifies you of that amount before making an entry in line 43. If you do not receive this information before April 15, 2025, and you are expecting a refund, you may have ad ditional time to file your return. See When to File Your Return on page 5 for more information. For more information about the federal EIC, see IRS publication 596, available at irs.gov. Note: If you are considered married for federal and Massachusetts income tax purposes, you gener ally must file a joint return with your spouse to claim the EIC. However, recent federal legislation has expanded this beginning with tax year 2022. Massachusetts adopts the expansion of the fed eral EIC in calculating the Massachusetts EIC. In addition, even if you don't qualify under the newly expanded rules, if you are a victim of domestic abuse you may file a return as married filing sep arately and still claim the EIC in Massachusetts if the following apply to you: ◗ You are living apart from your spouse at the time you file your tax return; and ◗ You are unable to file a joint return because you are a victim of domestic abuse. If you have a filing status of married filing sepa rately and you claim the EIC under the Massachu setts exception, you should keep records demon strating the existence of domestic abuse. What constitutes adequate records will vary depend ing upon your circumstances. Some examples of documents that may meet this record-keeping re quirement include (do not enclose these records with your tax return): ◗ Protective and/or restraining order; ◗ Police report; ◗ Doctor’s report or letter; ◗ A statement from someone who was aware of, or who witnessed, the abuse or the results of the abuse. The statement should be notarized if possible; or ◗ A sworn statement from you attesting to the abuse. To claim this exception, you must fill in the oval on line 43. To determine if you qualify for the credit with a filing status exception as a victim of do mestic abuse, you should complete the IRS EIC worksheet. Note: You should answer No to question 4 of the EIC worksheet and when looking up the amount of the credit in the EIC table you should use the col umn for the filing status “single” and the number of children you have. To determine line 43, “Amount from U.S. return”: ◗ U.S. Form 1040, EIC Worksheet A filers should use the amount from Worksheet A, line 6. ◗ U.S. Form 1040, EIC Worksheet B filers should use the amount from Worksheet B, line 11. See TIR 17-10 for more information. Line 44. Senior Circuit Breaker Credit Certain senior citizens in Massachusetts may be eligible to claim a refundable credit on their state income taxes for the real estate taxes paid on the Massachusetts residential property they own or rent and which they occupy as their principal resi dence. The maximum credit allowed is $2,730 for the tax year beginning January 1, 2024. If the credit due the taxpayer exceeds the amount of the total income tax payable for the year by the taxpayer, the excess amount of the credit will be refunded to the taxpayer without interest. To determine if you qualify for this credit, refer to the Senior Circuit Breaker Credit instructions in this booklet. If you qualify for this credit and you are a home owner, enter the amount from Schedule CB, Circuit Breaker Credit, line 17; if you are a renter, enter the amount from line 21. Be sure to complete and en close Schedule CB with your return. Line 46. Child and Family Tax Credit You may claim a credit of $440 for an individual who is (1) under the age of 13 and who qualifies for exemption as a dependent for federal purposes; (2) a dependent, or the taxpayer’s spouse, who is physically or mentally incapable of taking care of himself or herself and principally lives with the tax payer; or (3) a dependent who is age 65 or over or disabled. Starting with tax years beginning on or after January 1, 2024, a noncustodial parent may claim the credit with respect to a child dependent that is age 13 or older and who is physically or mentally incapable of caring for himself or herself. Enter the number of qualified dependents in line 46a and multiply that amount by $440. Enter the result in line 46. You may only claim the credit if you file as single, head of household, or married filing jointly. You cannot claim this credit if you file as married filing separately. Line 47. Other Refundable Credits Enter in line 47 the amount from Schedule CMS, Credit Manager Schedule. Be sure to enclose Schedule CMS with your re turn. Failure to do so will delay the processing of your return. For more information on Sched ule CMS, refer to the Schedule CMS instructions on page 32. Line 49. Excess Paid Family Leave Withholding Businesses are required to withhold Paid Family and Medical Leave (PFML) contributions from employees and individuals whose payments for services are reported on U.S. Form 1099-MISC (1099-MISC workers) up to the annual income limit set by the Social Security Administration for the Social Security Program. Self-employed individuals not otherwise covered by PFML may opt to participate in the PFML pro gram and pay PFML contributions from their net earnings from their self-employment income, sub ject to this same limitation. For the 2024 tax year, the income limit is set at $168,600 and the maxi mum PFML contribution amount for most individ uals is $775.56. For a self employed individual not subject to PFML withholding who opts into PFML, the maximum PFML contribution is $1,483.68. A single employer may not withhold, and a self-employed individual may not contribute, more than the maximum PFML contribution amount in a tax year. If a single employer withholds more than the maximum yearly PFML contribution amount, the employee should contact their employer di rectly regarding a refund. If your PFML contri butions or the amount of PFML contributions withheld on your behalf during the tax year ex ceeded the maximum PFML contribution amount, or you are self-employed and your contributions were made based on your gross earnings and did not take into account your business expenses, you may have excess PFML contributions that entitles you to seek a credit on your individual tax return, subject to certain requirements. • W-2 filers: If you worked for two or more Mas sachusetts businesses that each remitted PFML contributions on your behalf during the 2024 tax year, and the total amount of your combined Mas sachusetts W-2 wage income exceeded $168,600, you should complete the worksheet below to de termine if you have excess PFML withholding. The PFML law follows the unemployment stat ute, malegislature.gov/Laws/GeneralLaws/PartI/ TitleXXI/Chapter151A/Section1, for determining what counts as wages. If all of the wages reported on your W-2s are subject to PFML withholding, you should use the greater of Box 3 (Social Se curity Wages) or Box 5 (Medicare Wages) when completing the worksheet. If a portion of your wages are not subject to PFML withholding, you should reduce your Box 3 (Social Security Wages) or Box 5 (Medicare Wages) by any wages that were not subject to PFML withholding. To be eligi ble for a credit the total PFML contribution amount remitted on your behalf must exceed $775.56. If only one employer withheld PFML contributions, and your PFML contributions exceeded the proper amount due, you must seek reimbursement from your employer. You are not eligible to claim a credit on line 49. 2024 Form 1 Instructions 16
• 1099-MISC workers: If you worked for one or more Massachusetts businesses that remitted PFML contributions on your behalf based on your 1099-MISC gross earnings during the 2024 tax year, you should complete the worksheet below to determine if you have any excess PFML contributions. • Self-employed individuals that opt in to PFML: If you are a self-employed individual that has opted to participate in the PFML program, your required PFML contributions are based on your net earn ings from self-employment. You may complete the worksheet below to determine if you have any ex cess PFML contributions. • Joint returns: The maximum PFML contribution amount applies on an individual basis. If filing a joint return, figure the amount of excess PFML withholding separately for each spouse and enter the combined total. For more information about the PFML program, including how PFML contributions are calcu lated, see the Department of Family and Med ical Leave’s (DFML) regulation at 458 CMR 2.00, and DFML’s website at mass.gov/orgs/ department-of-family-and-medical-leave. Line 49. Excess Paid Family and Medical Leave Contributions Worksheet If you are eligible to claim a credit for excess PFML contributions, enter in line 49 the amount of excess PFML contributions as determined by completing the below worksheet. 1. Enter your income as shown on your combined Form W-2s. If greater than $168,600, then enter $168,600. . . . . . . . . . . . . . . . . . 2. W-2 PFML contribution amount. Multiply line 1 by 0. 0046. . . . . . . . . . . . . . . . . . . . . 3. Enter the lesser of your 1099-MISC worker net income or ($168,600 - line 1). If you have a loss, enter 0. . . . . . . 4. 1099-MISC PFML contribution amount. Multiply line 3 by 0. 0046. . . . . . . . . . . . . . . . . . . . . 5. Enter the lesser of your self-employed opt-in net income or ($168,600- (line 1 + line 3)). If you have a loss, enter 0. . . . . . . . . . . . . . . . . . . . . . 6. Self-employed opt-in PFML contribution amount. Multiply line 5 by 0. 0088. . . . . . . . . . . . . . 7. Total combined PFML contribution amount. Add lines 2, 4 and 6. . . . . . . . . . . . . . . . . . . . . . . 8. Combine actual amounts of PFML contributions shown as withheld on Forms W-2, 1099-MISC and all amounts actually contributed by a self-employed individual that opted in (No single employer can ex ceed the maximum PFML contribution amount). . . . . . . . . . 9. Excess PFML Contributions withheld. If line 8 is equal to or less than line 7, enter zero in line 9. If line 8 is greater than line 7, subtract line 7 from line 8 and enter difference in line 9 . . . . . . . . . . . . Enter total in line 9 on line 49 of Form 1. *If filing a joint return add the amounts on line 9 from each spouse’s worksheet and enter the total, in whole dollars only, on line 49 of Form 1. Refund Amount Line 52. Amount of Overpayment You Want Applied to Your 2025 Massachusetts Estimated Tax Enter the amount of your 2024 overpayment that you wish to apply to your 2025 Massachusetts es timated tax. Once an election is made to apply your overpayment to your 2025 estimated tax, it cannot be refunded after the due date of the return or ap plied to any additional tax you may owe for 2024, including any tax due on an amended return. The amount entered in this line can only be claimed as a credit on your 2025 Massachusetts return. Note: This amount cannot be changed on an amended return. Line 53. Refund Amount Subtract line 52 from line 51. Enter the result in line 53. This is the amount of your refund. Note: Your state tax refund may be taxable on your federal tax return if you deducted state income tax paid as an itemized deduction on U.S. Schedule A. You may elect to have your refund deposited di rectly into your savings or checking account. Check with your financial institution to make sure that it accepts direct deposit and verify the routing transit number (RTN) of the issuing financial insti tution. If we are unable to honor your request for a direct deposit, a paper check will be sent to you. The routing number of your financial institution is nine digits and begins with 01 through 12 or 21 through 32. The account number can be up to 17 characters (both numbers and letters). Omit hyphens, spaces and special symbols. Enter the number from left to right and leave any unused boxes blank. You must enter the routing number and the account number in the spaces provided in line 53 if you are requesting direct deposit. Failure to do so will result in your request for direct de posit being denied. Tax Due Line 54. Tax Due If line 37 is larger than line 50, subtract line 50 from line 37, and enter the result in line 54. This is the amount of tax you owe with your return. Pay in full with your return. Go to mass.gov/masstax connect for online payment options. If you need to mail your payment, make your check or money order payable to the Commonwealth of Massachu setts and write your Social Security number on the front of your check or money order in the lower left corner. Enclose the check with your return. Be sure to use the light blue mailing label when mail ing your Form 1. Failure to file or failure to pay the proper amount of tax when due will result in an increasing amount of interest and penalties. It is to your advantage to file when your return is due, whether or not you are able to make full payment. If you owe any interest, penalty or addition for the underpayment of estimated tax, add those amounts to the tax you owe when making your payment. What Are Interest and Penalties? Interest. If you fail to pay the tax when due, in terest will be charged. For an explanation of how interest is compounded in Massachusetts, see TIR 92-6, available at mass.gov/dor. Penalty for late payment. The penalty for late pay ment is 1% per month (or fraction thereof) of the tax due, up to a maximum of 25%. Penalty for failure to file. The penalty for failure to file a tax return by the due date is 1% per month (or fraction thereof) of the tax due, up to a maxi mum of 25%. If you were required to file a tax re turn for income received in any prior year and you did not file, you must file for that prior year. Penalty for protested (“bad”) payment. If your payment is not honored by your bank because of insufficient funds or any other reason, a penalty may be added of $30 or the amount of the pay ment, whichever is less. Addition for underpayment of estimated tax. You will generally be subject to this addition to tax if you did not have withholding and/or estimated payments equal to 80% of the total tax liability re quired to be paid and your 2024 tax due after cred its and withholding is greater than $400. The 80% 2024 Form 1 Instructions 17
requirement is reduced to 66.67% for individuals who receive two-thirds of their income from fish ing or farming. If you failed to meet these require ments, you must complete and enclose Massa chusetts Form M-2210 to calculate the amount you must add to line 54. You do not have to com plete Form M-2210 if the balance due with your return is $400 or less. You may not be subject to an underpayment penalty if you qualify for one of the following exceptions: ◗ You are a qualified farmer or fisherman and are paying the full amount of the tax due on or before March 1, 2025; ◗ You were a Massachusetts resident and were not liable for 2023 taxes (where the taxable year was 12 months); or ◗ The sum of your estimated payments and with holding equals or exceeds your 2023 tax (where the taxable year was 12 months and a return was filed). If you qualify for one of these exceptions, fill in the Exception oval under line 54 on Form 1 and enclose Form M-2210 indicating which of the ex ceptions applies to your circumstances. A limited number of taxpayers may also qualify for a waiver of the underpayment penalty for one or more installments if: ◗ The underpayment was because of casualty or disaster; or ◗ During 2023 or 2024 you retired after reach ing age 62 or became disabled and the underpay ment was due to reasonable cause and not will ful neglect. If you think you qualify for one of these waivers, go to mass.gov/dor and use DOR’s online ap plication for abatement return or enclose Form M-2210 and an explanatory statement with your return and fill in the Exception oval under line 54. If your waiver is not for all four installments, com plete Form M-2210 to calculate the underpayment penalty for the installments which are not covered by the waiver. Form M-2210 is available by visiting mass.gov/dor. Penalty for failure to report federal change. If the IRS changes your federal taxable income for a prior year (generally through audit), file an amended return within one year of the final fed eral determination to avoid this penalty. This pen alty is equal to 10% of the additional tax due. If the change indicates a refund, you must file an amended return within one year of federal determi nation, including acceptance of an amended fed eral return by the IRS. Sign Here Now that you have completed Form 1, sign your name at the bottom of page 1 of Form 1. Your spouse must also sign if this is a joint return. Write the date you signed the return. Note: Be sure to include all four pages of Form 1, as well as Schedule HC and all other applicable schedules. Enclose with your Form 1 all state copies of your Forms W-2, W-2G, PWH-WA, 2G, any Schedule K-1s, and any Forms 1099 which included Mas sachusetts withholding. Go to mass.gov/mas staxconnect for online payment options. If you need to mail your payment, make your check or money order payable to Commonwealth of Mas sachusetts and be sure to sign the check and write your Social Security number on it. Also, be sure to use the light blue mailing label when mailing your Form 1 with a payment. Paid Preparer Must Sign Your Return Generally, anyone you pay to prepare your return must sign it in the space provided at the bottom of page 4 of the Form 1. Tax return preparers are authorized to sign the return by means of a rubber stamp, mechanical device, or computer software program, which must include either a facsimile or printed name of the preparer. Preparers are per sonally responsible for affixing their signatures to returns. Preparers must also provide their Social Security number (SSN) or Preparer Tax Identifica tion Number (PTIN) and Employer Identification Number (EIN) in the spaces provided at the bot tom of page 4 of the Form 1. The preparer must give you a copy of the return for your records. Someone who prepares your return but does not charge you should not sign your return. Paid Preparer Authorization If you want to allow the DOR to discuss your 2024 tax return with the paid preparer who signed it, fill in the Yes oval in the signature area of the return at the bottom of page 4 of the Form 1. This autho rization applies only to the individual whose signa ture appears in the paid preparer section of your return. It does not apply to the firm, if any, shown in that section. If you fill in the Yes oval, you, and your spouse if filing a joint return, are authorizing DOR to call the paid preparer to answer any questions that may arise during the processing of your return. You are also authorizing the paid preparer to: ◗ Give DOR any information that is missing from your return; ◗ Call DOR for information about the processing of your return or the status of your refund or pay ment(s); and ◗ Respond to certain DOR notices that you have shared with the preparer about math errors, off sets and return preparation. The notices will not be sent to the preparer. You are not authorizing the paid preparer to receive any refund check, bind you to anything (including any additional tax liability), or otherwise repre sent you before DOR. If you want to expand the paid preparer’s authorization, see Form M-2848, Power of Attorney and Declaration of Represen tative. Form M-2848 is available at mass.gov/dor. The authorization cannot be revoked. However, the authorization will automatically end no later than the due date (without regard to extensions) for fil ing your 2025 tax return. This is April 15, 2026 for most people. E-File Opt Out Income tax return preparers who completed more than 10 original Massachusetts Forms 1 and 1-NR/PY (including those E-filed) during the pre vious calendar year are required to use electronic means to file all personal income tax returns, un less the taxpayer specifically directs on the paper form that the filing be on paper and signs Form EFO, Personal Income Tax Declaration of Paper Filing. Fill in the oval at the bottom of page 4 of Form 1 if you do not want your preparer to file your return electronically. See TIR 11-13 for more information. Mailing E-filing is the fastest most efficient way to sub mit your return and to receive your refund. How ever, if you are mailing your return follow these guidelines: ◗ If you are expecting a refund or if you have no tax due, use the white mailing label on the back of the envelope that came with this booklet. If you do not have one, mail your original or amended Form 1 to Massachusetts Department of Revenue, PO Box 7000, Boston, MA 02204-7000. If using a tax software product, be sure to use the correct PO box. See the inside front cover for this information. ◗ If you have a tax due, use the light blue mail ing label on the back of the envelope that came with this booklet. If you do not have one, mail your original or amended Form 1 to Massachusetts De partment of Revenue, PO Box 7003, Boston, MA 02204-7003. If using a tax software product, be sure to use the correct PO box. See the inside front cover for this information. 2024 Form 1 Instructions 18
Note: Schedule lines without specific instructions are considered to be self-explanatory. Be sure to list on each schedule the name and Social Security number that appears first on Form 1. Do not cut or separate schedules. Schedule DI Dependent Information Be sure to enclose with Form 1. You must complete this schedule if you are claim ing a dependent exemption(s) on Form 1, line 2b or taking a credit(s) on Form 1, lines 43 or 46 (if applicable). Failure to provide this information will delay the processing of your return. You must complete the information for each dependent. In the spaces provided enter the name, Social Se curity number, date of birth and the relationship of the dependent to you (son, daughter, mother, father, etc.). Also, if the dependent is a qualifying child for the Earned Income Credit, fill in the oval. If you are claiming more than 10 dependents, en close a statement listing the name, Social Security number, date of birth and the relationship of the dependent to you and if the dependent is a quali fying child for the Earned Income Credit. Schedule X Other Income Be sure to enclose with Form 1. Line 1. Taxable Alimony Received Enter in Schedule X, line 1 the total amount of taxable alimony and separate maintenance re ceived as reported on U.S. Form 1040, Schedule 1, line 2a. Note: Payments specified as child support are not taxable. Line 2. Taxable IRA/Keogh, Qualified Charitable IRA Distributions and Roth IRA Conversion Distributions Complete the Schedule X, Line 2 Worksheet to calculate the taxable portion of any amount you received from an Individual Retirement Account (IRA), Keogh, qualified charitable IRA distribution or Roth IRA conversion distribution. Since Massa chusetts does not allow a deduction for amounts originally contributed to an IRA or Keogh, the dis tributions are not taxable until the full amount of your contributions which were previously subject to Massachusetts taxes are recovered. Contributions made to Keogh accounts prior to 1975 were deductible when made. Therefore, no deduction may be taken from a Keogh distribution for amounts contributed before 1975. Note: Contributions from a deferred plan, such as a 401(k), that were rolled over into an IRA are not considered previously taxed contributions and are fully taxable upon distribution. Schedule X, Line 2 Worksheet. Taxable IRA/ Keogh Plan, Qualified Charitable IRA Distri butions and Roth IRA Conversion Distributions 1. Total IRA/Keogh plan distributions, qualified charitable IRA distributions, Roth IRA conversion distributions received during 2024. . . . . . . . . . 2. Total contributions previously taxed by Massachusetts. . . . . . . . 3. Total distributions re- ceived in previous years. . . . . . . . 4. Subtract line 3 from line 2. If line 3 is larger than line 2, enter 0. . . . . . . . . . . . . . . . . . . . . . 5. Subtract line 4 from line 1 and enter the result here. Not less than 0. . . . . . . . . . . . . . . . . . 6. Total qualified charitable IRA distributions in 2024 included in line 1. . . . . . . . . . . . . 7. Taxable IRA/Keogh distributions or Roth IRA conversion distributions. Subtract line 6 from line 5. Enter the result here and in Schedule X, line 2. Not less than 0. . . . . . . . . . . . . . . Note: You must complete separate worksheets if married filing a joint return and both you and your spouse received IRA/Keogh Plan, qualified charita ble IRA distributions, and/or Roth IRA conversion distributions. Line 3. Other Gambling Winnings Enter in Schedule X, line 3 all sports wagering win nings and all gambling winnings from casinos, raf fles, races, beano or other events of chance, wher ever held, and winnings from non-Massachusetts lotteries. Do not enter less than 0. You may only deduct the price of the winning ticket. Certain sports wagering and all gambling losses are now deductible under Massachusetts law. See Sched ule Y, line 17 and TIR 15-14 for more information. Note: Do not report Massachusetts state lottery winnings in Schedule X, line 3. Instead, report them on Form 1, line 8b. Line 4. Fees and Other 5.0% Income The following items should be reported on line 4 of Schedule X. Do not enter less than 0. Enclose addi tional statements if more space is needed. ◗ All fee income, such as payments for jury duty, election worker payments, director’s fees, com pensation received as executor or administrator of an estate, and commission income or tips not reported in line 3 of Form 1 are taxable. Also, re port all bartering income not reported on Sched ule C (the fair market value of goods or services received in payment for your services). ◗ All prizes and awards won in a quiz program, drawing, beauty contest, etc. are taxable at fair market value. Awards and bonuses received from your employer for performance of services not part of a qualified award plan are also taxable. ◗ Forgiveness of debt and mortgage forgiveness. ◗ Other Massachusetts 5.0% income reported on U.S. Form 1040, Schedule 1, line 9 and not re ported elsewhere in Form 1, lines 3 through 8 or Schedule X, lines 1 through 3 must be reported in line 4 of Schedule X. Note: Do not include U.S. Shareholders IRC § 965(a) inclusion amounts that are included in the U.S. Form 1040, Schedule 1, line 9 in line 4 of Schedule X. These amounts are included in Sched ule B, see Schedule FCI for additional details and instructions. ◗ Pre-1996 installment sales classified as ordi nary income for Massachusetts purposes (from Massachusetts Schedule D, line 10) are taxed as 5.0% income and must be reported on line 4 of Schedule X. ◗ Embezzled or other income from illegal activi ties is taxable and should be reported on Schedule X, line 4. ◗ Any benefits paid to you by a union as strike or lockout benefits to the extent included on U.S. Form 1040, line 1h. The following items should not be reported on your Massachusetts return: ◗ Any net operating loss reported as a negative amount on U.S. Form 1040, Schedule 1, line 9 cannot be entered on Schedule X. A net operating loss from a business or profession cannot be car ried forward or backward to offset individual in come in any other year under Massachusetts law. ◗ Refunds of U.S. and Massachusetts income taxes are not considered income under Massachu setts law. If you received interest on refunds, re port such interest on Massachusetts Schedule B. 2024 Form 1 Instructions 19
Line 5. PFML Taxable Distributions Enter in Schedule X, line 5 all income received from the Department of Family and Medical Leave. The amount should be in box 1 of the 1099-G issued to you by the Commonwealth Of Massachusetts, MA Department of Family and Medical Leave. Line 6. Excess Business Loss Adjustment For tax year 2024, taxpayers must report on Schedule X, line 6 any excess business loss (EBL) stated on U.S. Form 1040, Schedule 1, line 8p. Generally, EBL is the amount by which the total deductions attributable to a taxpayer’s trades or businesses exceed the sum of (i) the taxpayer’s total gross income and gains attributable to those trades or businesses and (ii) a threshold amount of $305,000 for single filers and $610,000 for joint returns. Differences between Massachusetts and federal income and deductions (e.g., bonus depre ciation) should be taken into account by adjusting the amount reported on Massachusetts Schedule X, line 6. Explain any difference between amounts reported on Massachusetts Schedule X, line 6, and on U.S. Schedule 1, line 8p, using Massachusetts Schedule TDS. Unlike on federal returns, you may not carry forward disallowed EBL because those losses are treated, for federal purposes, as net op erating losses, which are not allowed as a Massa chusetts deduction. Schedule Y Other Deductions Be sure to enclose with Form 1. Line 2. Penalty on Early Savings Withdrawal If you were charged a penalty because of early withdrawal of savings, and interest on the savings that such a penalty relates to is income reported in line 5 or line 20 of this return or on a prior-year Massachusetts return, you may deduct the pen alty. This deduction is the same as the amount al lowable on U.S. Form 1040, Schedule 1, line 18. Enter this amount in line 2 of Schedule Y. Line 3. Deductible Alimony Paid Enter in Schedule Y, line 3 the total deductible ali mony paid to your former spouse as reported on U.S. Form 1040, Schedule 1, line 19a. Line 4. Amounts Excludible Under MGL Ch 41, § 111F or U.S. Tax Treaty Included in Form 1, Line 3 Massachusetts allows an exclusion from income of amounts received by a firefighter or police of ficer incapacitated in the line of duty, per MGL ch 41, § 111F, and an exclusion from income of amounts received by a qualifying student or tax payer exempt under a U.S. tax treaty. Enter any excludible amount of income received while you were a firefighter or police officer inca pacitated in the line of duty in line 4 of Schedule Y that was included in Form 1, line 3, and fill in the appropriate oval. If you were a qualifying student or a taxpayer with income exempt under a United States tax treaty, enter any excludible amount of income received that was exempt under such tax treaty in line 4 of Schedule Y that was included in Form 1, line 3, and fill in the appropriate oval. Line 5. Moving Expenses for Members of the Armed Forces For tax years 2018 through 2025, for qualifying members of the Armed Forces, enter in Sched ule Y, line 5 the amount of moving expenses as reported on U.S. Form 1040, Schedule 1, line 14. Line 6. Medical Savings Account Enter in Schedule Y, line 6 the amount of the Med ical Savings Account deduction included in U.S. Form 1040, Schedule 1, line 23, “MSA.” Line 7. Self-Employed Health Insurance Enter in Schedule Y, line 7 the amount from U.S. Form 1040, Schedule 1, line 17. Note: The amount on Schedule Y, line 7 should be the same as the amount on U.S. 1040, Schedule 1, line 17. If you elected to claim the federal credit for health insurance costs and were required to reduce the U.S. Form 1040, Schedule 1, line 17 deduction by the amount of the federal credit, you may not add the federal credit to the amount on Schedule Y, line 7. Line 8. Health Savings Accounts Enter in Schedule Y, line 8 the amount from U.S. Form 1040, Schedule 1, line 13. Line 9. Other Qualified Deductions You may claim only the deductions listed below for Schedule Y, line 9. ◗ 9a Certain qualified deductions from U.S. Form 1040. Enter the sum of the amounts re ported on U.S. Form 1040, Schedule 1, line 11 (Educator expenses), line 24a (Jury duty pay), line 24b (Deductible expenses related to income re ported on line 8l from the rental of personal prop erty engaged in for profit) but only to the extent it relates to income reported on Massachusetts Schedule X, line 4, line 24c (nontaxable value of Olympic and Paralympic medals and the amount of United States Olympic Committee (USOC) prize money), line 24d (Reforestation amortization and expenses), line 24e (Repayment of supplemental unemployment benefits under the Trade Act of 1974), line 24g (Contributions by certain chap lains to § 403(b) plans), line 24h (Attorney fees and court costs for action involving certain unlaw ful discrimination claims), line 24i (Attorney fees and court costs you paid in connection with an award from the IRS for information you provided that helped the IRS detect tax law violations), and line 24z (Other adjustments), but only to the extent deductible in Massachusetts. Do not include amounts reported on U.S. Form 1040, Schedule 1, lines 12 through 23, or amounts not identified above in line 24; including but not limited to amounts contributed to § 501(c)(18) pension plans and IRC § 404 deduction for con tributions on behalf of IRC § 401(c)(1) employees (sole proprietors and partners). See TIR 08-3. ◗ 9b Business Expenses of National Guard and Reserve Members, Performing Artists, and Fee-Basis Government Officials; Impair ment-related Work Expenses of Persons with Qualifying Disabilities. Note: No deduction is allowed to a taxpayer who files a joint federal income tax return unless a MA joint return is also filed. MGL, ch 62, § 2(d)(2). Enter the sum of 1) the amount from U.S Form 1040, Schedule 1, line 12; and 2) certain impair ment-related work expenses included on U.S. Form 1040, Schedule A, line 16. 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 Re serve member, you're allowed a deduction for unreimbursed overnight travel, meals and lodg ing expenses. If you perform services as an official 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 of ficial duties. If you meet the federal qualifications to be con sidered a qualified performing artist, you're al lowed a deduction for expenses you paid related to your performances. Impairment-related Work Expenses of Persons with Qualifying Disabilities are the allowable ex penses of an individual with physical or mental disabilities for attendant care at his or her place of employment. They also include other expenses in connection with the place of employment that enable the employee to work. Employees who are not salespersons who so licit business for an employer away from the em ployer's place of business may only report im pairment-related expenses from U.S. Form 1040, Schedule A, line 16 that are expenses of travel, 2024 Form 1 Instructions 20
meals, and lodging while away from home, or ex penses of transportation. ◗ 9c Charitable Contribution Deduction. Mas sachusetts allows a charitable deduction in an amount equal to the federal charitable deduc tion, except that the state deduction does not in clude any amounts for contributions of household goods or used clothing. Taxpayers do not have to itemize their deductions for federal tax purposes to claim the Massachusetts deduction. The Massachusetts deduction may only be used to reduce Part B adjusted gross income – e.g. wages – and cannot be used to reduce capital gain, divi dend, or interest income other than interest from Massachusetts banks. Taxpayers must keep records to substantiate cash and non-cash charitable contributions to the same extent as specified in U.S. Form 1040, Schedule A instructions. On line 9c, enter the amount entered on U.S. Form 1040, Schedule A, line 14, excluding the value of household goods or used clothing. If you did not itemize deductions on your U.S. re turn, enter on line 9c the amount you would have entered on U.S. Form 1040, Schedule A, line 14 (excluding the value of household goods or used clothing) if you had itemized. If you deduct more than $500 of non-cash con tributions, you must complete and attach U.S. Form 8283. Line 10. Student Loan Interest Deduction Enter the amount from U.S. Form 1040, Schedule 1, line 21, not to exceed $2,500. This deduction is only allowed if not claiming the same expenses in line 12 of Schedule Y, Undergraduate Student Loan Interest Deduction. Line 11. College Tuition Deduction A deduction is allowed for tuition payments paid by you, for yourself or a dependent, to a qualifying two- or four-year college leading to an undergrad uate or associate’s degree, diploma or certificate. Tuition payments for students pursuing graduate degrees at such a college or university are not eligible for the college tuition deduction. The de duction is equal to the amount by which the tuition payments, less any scholarships, grants or finan cial aid received, exceed 25% of Massachusetts AGI. The amount of the college tuition deduction is limited to qualified tuition expenses paid during a taxable year in connection with an academic term beginning during such taxable year or during the first three months of the next taxable year. Qualified tuition expenses include only those ex penses designated as tuition or mandatory fees required for the enrollment or attendance of the taxpayer or any dependent of the taxpayer at an eligible educational institution. No deduction is al lowed for any amount paid for room and board, books, supplies, equipment, personal living ex penses, meals, lodging, travel or research, ath letic fees, insurance expenses or other expenses unrelated to an individual’s academic course of in struction. Also, no deduction is allowed for reim bursements or refunds of qualified tuition and re lated expenses made by an insurer. Complete the Massachusetts AGI Worksheet and the Schedule Y, line 11 worksheet to see if you may qualify for this deduction. This deduction is only available to full year residents. See TIRs 97-13 and 16-15 for more information. Schedule Y, Line 11 Worksheet. College Tuition Deduction 1. Enter total tuition payments paid by you, for yourself or a dependent, to a qualifying two- or four-year college in 2024. . . . . . . . . . . . . . . 2. Enter amount of scholarships, grants or financial aid received in 2024 for amounts shown in line 1. . . . . . . . . . . . . . . . . . . . . 3. Enter amount of reimbursements or refunds received in 2024 of amounts shown in line 1 reported by an insurer (from U. S. Form 1098-T, box 10). . . . . . 4. Subtract lines 2 and 3 from line 1. If 0 or less, you do not qualify for this deduction. . . . . . . 5. Enter amount from line 7 of the Massachusetts AGI Worksheet. . . . . . . . . . . . . . . . . . . 6. Multiply line 5 by . 25. . . . . . . . 7. If line 4 is smaller than line 6, you are not eligible for this deduction. Enter 0. If line 4 is larger than line 6, subtract line 6 from line 4 and enter the result here and on Schedule Y, line 11. . . . . . . . . . . .
Line 12. Undergraduate Student Loan Interest Deduction A deduction is allowed for interest paid on a quali fied undergraduate student loan. To be eligible for the deduction, the “education debt” must be a loan that is administered by the financial aid office of a two-year or four-year college at which you, or a qualified dependent, were enrolled as an under graduate student. Additionally, the loan must have been secured through a state student loan pro gram, a federal student loan program, or a com mercial lender, and must have been spent solely for the purposes of paying tuition and other ex penses directly related to the school enrollment. Enter the amount of such interest paid in Sched ule Y, line 12. This deduction is only allowed if not claiming the same expenses in line 10 of Schedule Y, Student Loan Interest Deduction. Line 13. Deductible Amount of Qualified Contributory Pension Income from Another State or Political Subdivision Included in Form 1, Line 4 Massachusetts allows a deduction for contribu tory pension income received from another state or one of its political subdivisions that does not tax such income from Massachusetts or its political subdivisions. For guidelines to determine which state’s pensions are exempt in Massachusetts, see TIR 95-9. Enter any deductible amount of such in come in line 13 of Schedule Y that was included in Form 1, line 4. Line 14. Claim of Right Deduction Taxpayers who have paid Massachusetts personal income taxes in a prior year on income attributed to them under a “claim of right” may deduct the amount of that income from their gross income if it later develops that they were not in fact enti tled to the income, and have repaid the amounts in question. The deduction is allowed in the year of repayment, provided that the repayment is not otherwise deductible in determining Massachu setts income taxable under MGL ch 62. Some examples in which the claim of right may be ap plied for are: ◗ Stock under claim of ownership. Gains from sales of stock under a claim of ownership must be included, regardless of whether the taxpayer actually owned it; ◗ Employment contracts. Amounts in settle ment of employment contracts must be included not-withstanding the prospect of eventual repay ment to the employer of an amount equivalent to or greater than the amount received; ◗ Dividends. Where a taxpayer receives a divi dend that must be repaid in a later year (e.g., be cause it impaired corporate capital), the dividend must be included in the year of receipt; ◗ Corporate notes. Where a taxpayer receives a distribution with respect to holding of notes, the income must be included regardless of whether it could be challenged by senior creditors; ◗ Mistake in validity of claim. The claim of right doctrine applies where a taxpayer merely mistakes the validity of his claim; ◗ Advanced insurance commissions; or ◗ Repayment of unemployment compensation and supplemental unemployment benefits in a subsequent year. 2024 Form 1 Instructions 21
If you are entitled to claim this deduction, enter the amount claimed in Schedule Y, line 14. For more information, see TIR 06-4. Line 15. Commuter Deduction A deduction is allowed for certain amounts paid by an individual for tolls paid for through an E-Z Pass account or all MBTA fares, not just weekly or monthly transit commuter passes, and includes RTA fares, bikeshare memberships, bike pur chases (including e-bikes), bike improvements/ repair/storage, and fares on non-MBTA commuter boats that are owned, operated or contracted by a municipality or a public or quasi-public entity, agency or authority, not including amounts reim bursed or otherwise deductible. In the case of a single person or a married person filing a separate return or as head of household, this deduction applies only to the portion of such expended amount that exceeds $150, and the total amount deducted cannot exceed $750. In the case of a married couple filing a joint return, this deduc tion applies only to the portion of such amount ex pended by each individual that exceeds $150, and the total amount deducted cannot exceed $750 for each individual. Also, one spouse cannot transfer his or her excess deduction to the other spouse; separate worksheets must be completed to calcu late the deduction. See TIR 06-14 for additional information. The deduction is allowed where an individual pur chases an MBTA pass for a dependent who is claimed on that individual’s tax return, provided the dependent does not also claim the deduction. However, the total amount deducted cannot ex ceed $750 for each individual taxpayer who is fil ing a return. In the case of married taxpayers filing a joint return, the total amount deducted cannot exceed $750 per taxpayer; thus, the maximum de duction for a joint return is $1,500. Complete the Schedule Y, Line 15 Worksheet to calculate the commuter deduction. Schedule Y, Line 15 Worksheet. Commuter Deduction 1. Enter amount paid in 2024 for tolls through an E-Z Pass account. . . . . . . . . . . . . . . . . . . . . 2. Enter amount paid in 2024 for commuting costs. (Do not include amounts reimbursed or otherwise deductible). . . . . . . . 3. Add lines 1 and 2. If $150 or less, you do not qualify for this deduction. Omit remainder of this worksheet. Otherwise, complete lines 4 through 6 . . . . . . . . . . . . .
4. Enter $150. . . . . . . . . . . . . . . . 5. Subtract line 4 from line 3. . . . . . . . . . . . . . . . . . . . . . . 6. Enter the lesser of line 5 or $750 here and on Schedule Y, line 15. . . . . . . . . . . . Line 16. Deduction for Expenses of Human Organ Transplant An individual may deduct certain expenses and other costs incurred in the process of donating an organ for a human organ transplant to another in dividual. For purposes of this deduction, “human organ” shall mean all or part of human bone mar row, liver, pancreas, kidney, intestine or lung. In the case of an individual who donates an organ to another person for human organ transplantation, the individual may deduct the following expenses that are incurred by the individual and related to the individual’s organ donation: ◗ Travel expenses; ◗ Lodging expenses; and ◗ Lost wages not to exceed $10,000. An individual who is a nonresident of Massachu setts for all or part of the taxable year is not eli gible to claim this deduction. If you are entitled to claim this deduction, enter the amount claimed in Schedule Y, line 16. See TIR 11-6 for further information. Line 17. Certain Gambling Losses Massachusetts allows a deduction from 5.0% income for losses from wagering transactions that were incurred in a calendar year at a Mas sachusetts gaming establishment licensed in ac cordance with MGL ch 23K or a racing meeting licensee or simulcasting licensee, only to the ex tent of the gains from such transactions. See TIR 15-14 for more information. For tax years begin ning on or after January 1, 2023, this deduction also includes losses from sports wagers that were incurred through a Massachusetts sports wager ing operator licensed under MGL ch 23N. A taxpayer may claim a deduction for qualifying sports wagering and gambling losses incurred in the calendar year from the above Massachusetts sources only if the taxpayer had sports wagering or gambling winnings in the same calendar year from any such Massachusetts source. The de duction allowed for such losses may not exceed the amount of such winnings included in gross income for the calendar year. Because Massachusetts does not adopt the de ductions under IRC § 165(d), the deduction for sports wagering and gambling losses set forth in MGL ch 62, § 3(B)(a)(18) is the only deduction for such losses allowed a Massachusetts taxpayer, unless the sports wagering and gambling activities of the taxpayer constitute a trade or business. Example For calendar year 2024, taxpayer, a Massachusetts resident, has: ◗ Gambling winnings of $500 from Massachu setts state lottery; ◗ Gambling winnings of $800 from a casino li censed under MGL ch 23K; ◗ Gambling winnings of $1200 from a Las Vegas casino; ◗ Sports waging winnings of $500 from a sports wagering operator licensed under MGL ch 23N; ◗ Sports waging winnings of $600 from a sports wagering operator in Las Vegas; ◗ Gambling losses of $1600 from a Las Vegas casino; ◗ Gambling losses of $510 from Massachusetts Lottery scratch tickets; ◗ Gambling losses of $1000 from a casino li censed under MGL ch 23K; ◗ Sports waging losses of $700 from a sports wa gering operator licensed under MGL ch 23N; ◗ Sports waging losses of $200 from a sports wa gering operator in Las Vegas. For Massachusetts income tax purposes, the tax payer must include $500 of their Massachusetts state lottery winnings on Form 1, line 8b and the remaining $3,100 of their gambling and sports wagering winnings on Schedule X, line 3. The tax payer may claim a deduction for gambling losses from casinos licensed under ch 23K and for sports wagering losses from sports wagering op erators licensed under MGL ch 23N but only to the extent of winnings from casinos licensed under ch 23K and sports wagering operators licensed under MGL ch 23N. No deduction is available for the taxpayer’s gambling and sports wagering losses from other sources. The taxpayer had win nings of $800 and losses of $1,000 from casinos licensed under ch 23K. The taxpayer had winnings of $500 and losses of $700 from sports wagering operators licensed under MGL ch 23N. Thus, the taxpayer may claim a deduction of $1300, the ex tent of aggregate winnings from qualifying Mas sachusetts sources. The remaining $400 of loss from casinos licensed under ch 23K and sports wagering operators licensed under MGL ch 23N may not be deducted. Gambling losses from the Massachusetts state lottery are not deductible. If you are entitled to claim this deduction, enter the qualified amount in Schedule Y, line 17. 2024 Form 1 Instructions 22
Line 18a. Prepaid Tuition or College Savings Plan Deduction A deduction is available for purchases of or con tributions made to an account in a pre-paid tuition program or a college savings program established by the Commonwealth. The deduction is capped at $1,000 for a single person, married filing sepa rate, or head of household and $2,000 for a mar ried couple filing a joint return. The deduction is subject to recapture in the taxable year or years in which distributions or refunds are made from the tuition or college savings account for any reason other than: ◗ To pay qualified higher education expenses, as defined by IRC § 529(e)(3); or ◗ The beneficiary’s death, disability or receipt of a scholarship. Enter the allowable amount on Schedule Y, Line 18a. For more information, see TIR 16-15. Line 18b. Student Loan Repayment Assistance Deduction A deduction is available for employer-provided student loan repayment assistance to the extent not already excluded from federal gross income. Employer-provided student loan repayment as sistance is the employer’s payment of an employ ee’s principal or interest on a qualified education loan, as defined in IRC § 221. Employees enter on line 18b the amount of such employer-pro vided student loan repayment assistance that ex ceeds $5,250. Schedule B Note: If showing a loss, be sure to mark over the X in the box to the left. Also, be sure to enclose with Form 1. Interest, Dividends and Certain Capital Gains and Losses You must file Massachusetts Schedule B if you had: ◗ Dividend income; ◗ Any interest income other than from Massachu setts banks taxed at 5.0%; ◗ Short-term capital gains or losses; ◗ Carryover short-term losses from prior years; ◗ Long-term gains on collectibles and pre-1996 installment sales classified as capital gain income for Massachusetts purposes; ◗ Gains or losses from the sale, exchange or in voluntary conversion of property used in a trade or business; ◗ Net long-term capital gains and losses; or ◗ Excess exemptions. Collectibles are defined as any capital asset that is a collectible within the meaning of IRC § 408(m), as amended and in effect for the taxable year, in cluding works of art, rugs, antiques, metals, gems, stamps, alcoholic beverages, certain coins, and any other items treated as collectibles for federal tax purposes. ◗ You need not file Massachusetts Schedule B if all interest income you had was from Massa chusetts banks (reportable in Form 1, line 5), and you have no short-term capital gains or losses, long-term gains on collectibles and pre-1996 in stallment sales, gains or losses from the sale, exchange or involuntary conversion of property used in a trade or business, allowable deductions from your trade or business, carryover short- term losses from prior years, net long-term capi tal gains or losses, or excess exemptions. ◗ You must complete Massachusetts Schedule B if your interest or dividend income includes: divi dends taxed directly to trusts or estates on a Mas sachusetts Fiduciary Return, Form 2; or distribu tions that are returns of capital. Part 1. Interest and Dividend Income Line 1. Total Interest Income Enter your total interest income from your U.S. Form 1040, lines 2a and 2b. Line 2. Total Ordinary Dividends Enter your total ordinary dividends from your U.S. Schedule B, Part II, line 6. If you did not file U.S. Schedule B, enter the amount from U.S. Form 1040, line 3b. Line 3. Other Interest and Dividends Enter the following amounts and their sources (enclose additional statement if more space is necessary): ◗ Interest from obligations of other states and their political subdivisions (including your share, if any, from a partnership, an S corporation and a grantor-type trust or non-Massachusetts trust). Do not include exempt interest already included in Schedule B, line 1; ◗ Taxable distributions from Massachusetts S corporations not reported in Schedule B, line 2. Distributions in excess of the Massachusetts ac cumulated adjustments account are dividends to the extent of the corporation’s Massachusetts ac cumulated earnings and profits. For more infor mation, see 830 CMR 62.17A.1; ◗ Interest and dividends from a partnership, S corporation, grantor-type trust, or non-Massachu setts estate or trust from Massachusetts Sched ule E. Generally, portfolio interest and dividend income from partnerships and S corporations should already be included in Schedule B, line 1 and line 2 amounts; ◗ Interest from a trade or business that is re ported on Massachusetts Schedule C; ◗ Interest or dividends from a mutual fund, if such distributions are not included in Schedule B, line 1 or line 2. See Schedule B, line 6a; or ◗ Global Intangible Low-Taxed Income (GILTI), to the extent included in income reported on federal Schedule 1. See Technical Information Release (TIR) 19-11. Lines 5 and 6 Enter only amounts related to income that you have already included in lines 1, 2, and 3. Line 5. Total Interest from Massachusetts Banks Enter the total interest included in Form 1, line 5. Line 6a. Other Interest and Dividends to Be Excluded Enter the total interest and dividends from the fol lowing sources (enclose an additional statement, if necessary) only if it has been included in lines 1 or 3 of this schedule: ◗ Interest on U.S. debt obligations. Enter inter est received on treasury bills, notes and bonds, savings bonds or other obligations of the United States, including its territories or dependencies. Such interest is tax-exempt in Massachusetts. For further information concerning exempt obligations of the United States, see TIR 89-8; ◗ Interest and dividends taxed directly to Massa chusetts estates and trusts. Enter the interest and dividends that are taxed directly to a Massachu setts estate or trust (reportable on a Massachu setts Fiduciary Return, Form 2); ◗ Any distribution which is a return of capital in cluded in total gross dividends, line 2; ◗ Any interest or dividends from obligations of the Commonwealth of Massachusetts or its polit ical subdivisions held by you; ◗ Any exempt portion of interest or dividends from a mutual fund included in lines 1, 2 or 3 of this schedule. Enter only the exempt portion of in terest or dividends derived from obligations of the U.S. government or the Commonwealth of Massa chusetts or its political subdivisions; or ◗ Any interest on pre-retirement distributions from state and municipal contributory pension plans. Do not enter in line 6a either of the following: ◗ Dividends from the earnings and profits accu mulated prior to January 1, 1971, by any corporate trust which was not taxed directly by Massachu setts in prior years, even though such an entity is 2024 Form 1 Instructions 23
taxed directly now (obtain from the entity the tax able status of dividends paid to you); or ◗ Dividends from any corporate trust which is not taxed directly by Massachusetts. Such entities in clude: those not doing business in Massachusetts; regulated investment companies or real estate in vestment trusts (as defined under IRC §§ 851 and 856 respectively); or holding companies (as de fined in MGL ch 62, § 8). Line 8. Allowable Deductions from Your Trade or Business Enter the appropriate amount from Massachu setts Schedule C-2 if you qualify for an excess trade or business deduction. Generally, taxpay ers may not use excess 5.0% deductions to offset other income. However, where the taxpayer files a Massachusetts Schedule C or Schedule E, Massa chusetts law allows such offsets if the following requirements are met: the excess 5.0% deduc tions must be adjusted gross income deductions allowed under MGL ch 62, § 2(d); and these ex cess deductions may only be used to offset other income which is effectively connected with the ac tive conduct of a trade or business or any other in come allowed under IRC, § 469(d)(1)(B) to offset losses from passive activities. Line 9. Subtotal Interest and Dividend Income Subtract line 8 from line 7. Part 2. Short-Term Capital Gains and Losses and Long-Term Gains on Collectibles and Pre-1996 Installment Sales If you do not have short-term capital gains or losses, long-term capital gains on collectibles, pre-1996 installment sales, short-term capital gains or losses from the sale, exchange or invol untary conversion of property used in a trade or business, or Massachusetts short-term losses from prior year carryover, omit Part 2, lines 10-28 and go to Part 3, line 29. If there are any differences between U.S. and Mas sachusetts amounts reported in lines 10, 11, 12, 16 and 17, be sure to enter the Massachusetts amount. Possible differences include: ◗Short-term capital gains taxed directly to Mas sachusetts estates and trusts (reportable on a Massachusetts Fiduciary Return, Form 2); ◗Upon the sale of stock of an S corporation, the federal basis must be modified according to Massachusetts Income Tax Regulation, 830 CMR 62.17A.1; and ◗Massachusetts has adopted basis adjustment rules to take into account differences between Massachusetts and federal tax laws. For more information regarding basis adjustment rules, see TIR 88-7. Line 10. Massachusetts Short-Term Capital Gains Enter the gross short-term capital gains from U.S. Schedule D, lines 1 through 5, column h. Note: If there are any differences between U.S. and Massachusetts complete the line 10 worksheet. Schedule B, Line 10 Worksheet 1. Gross short-term capital gains from U. S. Schedule D, lines 1 through 5, column h . . . . . . . . . . . . . . . . . 2. U. S. and Massachusetts differences. . . . . . . . . . . . . . . . . . 3. Combine lines 1 and 2. . . . . . . 4. Capital loss transactions now included in line 3. Enter here and on line 6 of the Schedule B, Line 16 Worksheet. . . . . . . . . . . . 5. Subtract line 4 from line 3. . . . 6. Capital gain transactions from line 4 of the Schedule B, Line 16 Worksheet. . . . . . . . . . . . 7. Total Massachusetts short-term capital gains. Add lines 5 and 6. Enter here and on Schedule B, line 10. . . . . . . . . . . . . . . . . . . . . . Line 11. Long-Term Capital Gains on Collectibles and Pre-1996 Installment Sales Enter the amount of long-term capital gains on collectibles and pre-1996 installment sales classi fied as capital gain income for Massachusetts pur poses, from Massachusetts Schedule D, line 12. Line 12. Gain on Sale of Business Property Enter from U.S. Form 4797 the amount of gain from the sale, exchange or involuntary conversion of property used in a trade or business and held for one year or less. Schedule B, Line 12 Worksheet. 1. Gross gain on sale of business property held for one year or less from U. S. Form 4797. . . . . . . . . . 2. U. S. and Massachusetts differences. . . . . . . . . . . . . . . . . . 3. Combine lines 1 and 2. . . . . . . 4. Loss transactions now included in line 3. Enter here and in line 6 of the Schedule B, Line 17 Worksheet. . . . . . . . . . . . . . . . . . . 5. Subtract line 4 from line 3. . . . 6. Gain transaction from line 4 of the Schedule B, Line 17 Worksheet. . . . . . . . . . . . . . . . . . . 7. Total Massachusetts gain on the sale, exchange or involuntary conversion of property used in a trade or business and held for one year or less. Add lines 5 and 6. Enter here and on Schedule B, line 12. . . . . . . . . Line 13a. Add lines 10, 11 and 12 Full-year residents enter this amount here and on line 13c. Line 14. Allowable Deductions from Your Trade or Business Enter the appropriate amount from Massachu setts Schedule C-2 if you qualify for an excess trade or business deduction. Generally, taxpay ers may not use excess 5.0% deductions to offset other income. However, where the taxpayer files a Massachusetts Schedule C or Schedule E, Massa chusetts law allows such offsets if the following requirements are met: the excess 5.0% deduc tions must be adjusted gross income deductions allowed under MGL Ch 62, § 2(d); and these ex cess deductions may only be used to offset other income which is effectively connected with the ac tive conduct of a trade or business or any other in come allowed under IRC, § 469(d)(1)(B) to offset losses from passive activities. Line 16. Short-Term Capital Losses Enter the gross short-term capital losses included in U.S. Schedule D, lines 1 through 5, column h. If there are any differences between U.S. and Massa chusetts complete the line 16 worksheet. Schedule B, Line 16 Worksheet 1. Gross short-term capital losses from U. S. Schedule D, lines 1 through 5, column h . . . . . . . . . . . . . . . . . 2. U. S. and Massachusetts differences. . . . . . . . . . . . . . . . . . 3. Combine lines 1 and 2. . . . . . . 4. Capital gain transaction now included in line 3. Enter here and on line 6 of the Schedule B, Line 10 Worksheet . . . . . . . . . . . . 5. Subtract line 4 from line 3. . . . 6. Capital loss transactions from line 4 of the Schedule B, Line 10 Worksheet. . . . . . . . . . . . 7. Total Massachusetts Short-term Capital losses. Add lines 5 and 6. Enter here and on Schedule B, line 16. . . . . . . . . . . . . . . . . . . . . . 2024 Form 1 Instructions 24
Line 17. Loss on Sale of Business Property Enter from U.S. Form 4797 the amount of loss from the sale, exchange or involuntary conversion of property used in a trade or business and held for one year or less. If there are any differences be tween U.S. and Massachusetts complete the line 17 worksheet. Schedule B, Line 17 Worksheet 1. Gross loss on sale of business property held for one year or less from U. S. Form 4797. . . . . . . . . . 2. U. S. and Massachusetts differences. . . . . . . . . . . . . . . . . . 3. Combine lines 1 and 2. . . . . . . 4. Gain transactions now included in line 3. Enter here and in line 6 of the Schedule B, Line 12 Worksheet. . . . . . . . . . . . . . . . . . . 5. Subtract line 4 from line 3. . . . 6. Loss transactions from line 4 of the Schedule B, Line 12 Worksheet. . . . . . . . . . . . . . . . . . . 7. Total Massachusetts losses on the sale, exchange or involuntary conversion of property used in a trade or business and held for one year or less. Add lines 5 and 6. Enter here and on Schedule B, line 17. . . . . . . . . . . . Line 18. Prior Years Short-Term Unused Losses Enter here the amount from your 2023 Massachu setts Schedule B, line 40. 19a. Combine lines 15, 16, 17 and 18. Enter here and in line 19c. Line 20. Short-term losses applied against interest and dividends. If you have a loss on line 19c you can apply up to $2,000 of it against interest and dividends re ported in line 9. If line 19c is zero or greater, go to line 24. If line 19 c is zero or less, enter the smaller of line 9 or line 19c on line 20 (considered as a positive amount). Not more than $2,000. Line 21. Available Short-Term Losses Combine lines 19c and 20. This amount should be 0 or less. If line 21 is less than 0, go to line 22. If line 21 is 0, omit lines 22 through 28 and go to Part 3. If Schedule B, line 21 is a loss and Schedule D, line 13 is a loss, omit line 22, enter the amount from line 21 in line 23 and line 40, omit lines 24 through 28 and complete Part 3. Line 22. Short-Term Losses Applied Against Long-Term Gains If Schedule B, line 21 is a loss and Schedule D, line 13 is greater than 0, enter the smaller of Schedule B, line 21 (considered as a positive amount) or Schedule D, line 13 in Schedule B, line 22 and in Schedule D, line 14. Line 24. Short-Term Gains and Long-Term Gains on Collectibles Enter the amount from Schedule B, line 19c. If Schedule D, line 13 is 0 or greater, omit line 25 and enter the amount from line 24 in line 26. If Sched ule D, line 13 is a loss, go to Schedule B, line 25. Line 25. Long-Term Losses Applied Against Short-Term Gains If Schedule B, line 24 is greater than 0, and Sched ule D, line 13 is a loss, enter the smaller of Sched ule B, line 24 or Schedule D, line 13 (considered as a positive amount) in Schedule B, line 25 and in Schedule D, line 14. Line 27. Long-Term Gains Deduction Schedule B, Line 27 Worksheet. Long-Term Gains Deduction Complete only if line 26 is greater than 0 and there is an entry in line 11. 1. Enter amount from Schedule B, line 11. . . . . . . . . . . . 2. Enter the total of Schedule B, lines 10 and 12. . . . . . . . . . . . . . . 3. Enter the total of Schedule B, lines 16, 17, 18, and 25. . . . . . 4. If line 3, considered as a positive amount, is less than line 2, enter 0. If line 3, considered as a positive amount, is greater than line 2, combine lines 2 and 3. . . . . . . . . . . . . . . . . . . . . 5. Combine lines 1 and 4. . . . . . . 6. Multiply line 5 by . 5 (50%). . . 7. Enter the amount from Schedule B, line 26. . . . . . . . . . . . 8. Enter the smaller of line 6 or line 7 here and on Schedule B, line 27. Not less than 0. . . . . . . . . ◗ If there are no losses reported on lines 16, 17, 18 and 25, enter 50% of line 11. ◗ If the losses reported on lines 16, 17, 18 and 25 do not exceed the total amount of gain on lines 10 and 12, enter 50% of line 11. ◗ If the losses reported on lines 16, 17, 18 and 25 exceed the total amount of gain on lines 10 and 12 enter 50% of line 11 minus 50% of the excess loss (total of lines 16, 17, 18 and 25 minus the total of lines 10 and 12). Example ◗ Jack has a long-term capital gain on collectibles of $1,000 entered in line 11 and line 15. He does not have any other interest income (other than in terest from Massachusetts banks) and dividend income. Jack also has a short-term capital loss of $100 entered in line 16 and a prior-year short-term unused loss of $200 entered in line 18. Jack en ters $350 in line 27: $500 (50% of $1,000) – $150 (50% of $300) = $350. Part 3. Adjusted Gross Interest, Dividends Short-Term Capital Gains and Long-Term Gains on Collectibles Line 31. Subtotal Interest and Dividends If Schedule D, line 15 is 0 or greater, omit Sched ule B, line 32 and enter the amount from Schedule B, line 31 in Schedule B, line 33. If Schedule D, line 15 is a loss, go to Schedule B, line 32. Line 32. Long-Term Losses Applied Against Interest and Dividends If Schedule B, line 31 is a positive amount and Schedule D, line 15 is a loss, complete the Long- Term Capital Losses Applied Against Interest and Dividends Worksheet for Schedule B, Line 32 and Schedule D, Line 16. When completing the worksheet, be sure to enter all losses as a posi tive amount. Schedule B, Line 32 and Schedule D, Line 16 Worksheet. Long-Term Capital Losses Applied Against Interest and Dividends Complete only if Schedule B, line 31 is a positive amount and Schedule D, line 15 is a loss. Enter all losses as positive amounts. 1. Enter amount from Schedule B, line 29. . . . . . . . . . . . 2. Enter the lesser of line 1 or $2,000. . . . . . . . . . . . . . 3. Enter the amount from Schedule B, line 30. . . . . . . . . . . . 4. Subtract line 3 from line 2. If 0 or less omit the remainder of worksheet. Otherwise, complete lines 5 and 6. . . . . . . . . . . . . . . . . . . . . . . 2024 Form 1 Instructions 25 continue on next page ...
5. Enter any loss from Schedule D, line 15 as a positive amount. Otherwise, enter 0. . . . . . . . . . . . . 6. If line 4 is less than or equal to line 5, enter line 4 here and in Schedule B, line 32 and in Schedule D, line 16. If line 4 is larger than line 5, enter line 5 here and in Schedule B, line 32 and in Schedule D, line 16. . . . . . Line 36. Excess Exemptions Enter the amount from line 5 of the Schedule B, Line 36 and Schedule D, Line 20 Worksheet on page 11 (only if single, head of household or mar ried filing a joint return and Form 1, line 18 is greater than Form 1, line 17). Line 39. Total Taxable 8.5% and 12% Capital Gains Schedule B, Line 39 Worksheet Complete only if reporting an amount in Schedule B, Part 2, line 11. If no entry in Schedule B, Part 2, line 11, omit this worksheet and report the amount from Schedule B, line 39 on Form 1, line 23a, 8. 5% Income. 1. Total taxable gains from Schedule B, line 39. . . . . . . . . . . . 2. Long-term gains deductions from Schedule B, line 27 less the amount on Schedule B, line 36. Not less than 0.. . . . . . . . . . . . . . . 3. Enter the smaller of line 1 or line 2. Enter result here and on Form 1, line 23b, 12% Income. . . . . . . . . 4. Subtract line 3 from line 1. Enter result here and on Form 1, line 23a, 8. 5% Income. . . . . . . . . . . . . . . . Schedule D Note: If showing a loss, be sure to mark over the X in the box to the left. Also, be sure to enclose with Form 1. Long-Term Capital Gains and Losses Excluding Collectibles You must complete Massachusetts Schedule D if you had long-term gains or losses from the sale or exchange of capital assets or from similar transac tions which are granted capital gain or loss treat ment on your U.S. return, or if you had capital gain distributions. If you did not file U.S. Schedule D but are reporting capital gain distributions on U.S. Form 1040, line 7, you must complete Massa chusetts Schedule D (see line 6 instructions). In clude gains from all property, wherever located. Long-term capital gains are gains on the sale or exchange of capital assets that have been held for more than one year on the date of the sale or ex change. Long-term capital losses are losses on the sale or exchange of capital assets that have been held for more than one year on the date of the sale or exchange. The law defines capital gain income as gain from the sale or exchange of a capital asset. The defini tion of capital asset includes: ◗ An asset which is a capital asset under IRC § 1221; or ◗ Property that is used in a trade or business within the meaning of IRC § 1231(b) without regard to the holding period as defined in said § 1231(b). For a detailed explanation of the law, see DOR’s Regulation on Capital Gains and Losses at 830 CMR 62.4.1. Differences Significant differences between the U.S. and Mas sachusetts capital gain provisions are: ◗ IRC § 1244 losses reported as ordinary losses on your U.S. return must be reported on Massa chusetts Schedule D; ◗ If you made a federal election under § 311 of the Tax Relief Act of 1997 to recognize gain on the deemed sale of a capital asset held on Janu ary 1, 2001, Massachusetts does not follow the federal rules at § 311 for determining the basis of the asset. See TIR 02-3. If you sold a capital asset in 2024 for which you made a federal § 311 election, the Massachusetts initial basis will not be the federal basis. The Massachusetts initial basis will be determined as of the date the asset was first acquired; ◗ Upon the sale of stock of an S corporation, the federal basis must be modified according to 830 CMR 62.17A.1; and ◗ Massachusetts has adopted basis adjustment rules to take into account differences between Massachusetts and federal tax laws. For more information regarding basis adjustment rules, see TIR 88-7. Net ordinary losses that are itemized deductions on U.S. Schedule A are not allowable. Installment Sales If a sale was treated as an installment sale for U.S. income tax purposes, it may be treated the same way on your Massachusetts income tax return. Gains from pre-1996 installment sales are clas sified as either capital gains or ordinary income under the Massachusetts law in effect on the date the sale or exchange took place. Gains from pre-1996 installment sales that are classified as capital gains should be reported as 12% income on Massachusetts Schedule B. If the asset was held for more than one year when it was sold, the gain will be eligible for a 50% long- term deduction. Gains from pre-1996 installment sales that are classified as capital gains included on Massachusetts Schedule D, line 4 should be reported on Massachusetts Schedule D, line 12 (Long-term gains on collectibles and pre-1996 installment sales). The amount of such gain is then reported on Massachusetts Schedule B, Part 2, line 11. Gains from pre-1996 installment sales classified as ordinary income and that are included on Mas sachusetts Schedule D, line 4 should be reported on Massachusetts Schedule D, line 10 (Differ ences). The amount of such gain classified as or dinary income should then be reported on Form 1, line 9 (Other income) and included on Schedule X, line 4 and identified as 2024 gain from pre-1996 installment sale. Note: If you are reporting an installment sale oc curring on or after January 1, 2003, report those gains on Schedule D. If you are reporting capital gains on installment sales that occurred during January 1, 1996 through December 31, 2002, do not file Schedule D. Instead, you must file Sched ule D-IS, Installment Sales. Schedule D-IS can be obtained on DOR’s website at mass.gov/dor. Effective for sales on or after January 1, 2005, if you wish to report a sale on your Massachusetts return as an installment sale and the Massachu setts gain is $1 million or greater, you must apply in writing to DOR’s Installment Sales Unit. See TIR 04-28. The Commissioner of Revenue must ap prove your application to report the sale on the installment basis in Massachusetts before you file your return, and appropriate security must be posted. An explanatory statement must be en closed with each return for the life of the install ment sale. For further information contact the In stallment Sales Unit at (617) 887-6950. Exclusion of Gains from the Sale of Qualified Small Business (QSB) Stock or Reduced Capital Gains Tax Rate for Gains from the Sale of Stock in Certain Massachusetts-Based Start-Up Corporations Massachusetts excludes from gross income 100% of gain on sales or exchanges of qualified small business (QSB) stock held for more than 5 years to the same extent as allowed under IRC § 1202, as amended and in effect on January 1, 2024, so long as the sale or exchange occurred on or after January 1, 2024. For both federal and 2024 Form 1 Instructions 26
Massachusetts purposes, this exclusion applies to gain on QSB stock acquired on or after September 27, 2010. See TIR 23-5 for more information. In addition, gains derived from the sale of invest ments in small businesses which do not qualify for the above exclusion may be eligible for a re duced tax rate of 3%. In order to qualify for the 3% rate, investments must have been made within five years of the corporation’s date of incorpora tion and must be in stock that generally satisfies the definition of QSB stock under IRC § 1202 (c), other than the requirement that the stock be stock of a C corporation. In addition, the stock must be held for three years or more and the investments must be in a corporation which: ◗ Is domiciled in Massachusetts; ◗ Is incorporated on or after January 1, 2011; ◗ Has less than $50 million in assets at the time of investment; and ◗ Complies with applicable portions of the active business requirements of § 1202 of the IRC, i.e., §§ 1202 (e)(1), (e)(2), (e)(5), and (e)(6). Note: If you are reporting a sale of stock in a cer tain Massachusetts-based start-up corporation(s), do not file Schedule D. Instead, you must report that gain(s) on Schedule D-IS, Installment Sales or qualified small business stock gains. Sched ule D-IS can be obtained on DOR’s website at mass.gov/dor. Long-Term Capital Gains and Losses, Excluding Collectibles Line 1. Long-Term Capital Gains and Losses Enter the gain or loss from U.S. Schedule D, lines 8a and 8b, column h. Line 2. Long-Term Capital Gains and Losses Enter the gain or loss from U.S. Schedule D, line 9, column h. Line 3. Long-Term Capital Gains and Losses Enter the gain or loss from U.S. Schedule D, line 10, column h. Line 4. Gain from Sales of Business Property and Other Long-Term Gains and Losses Enter the gain or loss from U.S. Schedule D, line 11, column h. Line 5. Net Long-Term Gain or Loss from Partnerships, S Corporations, Estates and Trusts Enter the gain or loss from U.S. Schedule D, line 12, column h. Line 6. Capital Gain Distributions If you did not file U.S. Schedule D, enter the cap ital gain distributions reported to you by a mu tual fund or real estate investment trust from U.S. Form 1040, line 7. If you did file a U.S. Schedule D, enter the capital gain distributions reported to you by a mutual fund or real estate investment trust from U.S. Schedule D, line 13, column h. Line 7. Massachusetts Long-Term Capital Gains and Losses from U.S. Form 4797, Part II Enter amounts from U.S. Form 4797, Part II treated as capital gains or losses for Massachu setts purposes (not included in lines 1 through 6). These include ordinary gains from the sale of 1231 property, recapture amounts under §§ 1245, 1250 and 1255, § 1244 losses and the loss on the sale, exchange or involuntary conversion of prop erty used in a trade or business not held for one year or less. Line 8. Massachusetts Carryover Losses from Previous Years If you have a carryover loss from a prior year, enter in line 8 the total amount of Massachusetts carryover losses from your 2023 Massachusetts Schedule D, line 23. Line 10a. Massachusetts Adjustments Enter any differences between the gains or losses reportable for Massachusetts tax purposes and the U.S. gains or losses reported in Massachu setts Schedule D, lines 1 through 8 and on line 10c. Differences include: ◗ Pre-1996 installment sales classified as ordi nary income for Massachusetts purposes; ◗ Long-term capital gains or losses from transac tions reported as installment sales for U.S. income tax purposes but not for Massachusetts (Note: In come and gain transactions should be reported as positive and loss transactions should be reported as negative in line 10a.); and ◗ Massachusetts has adopted basis adjustment rules to take into account differences between Massachusetts and federal tax laws (Note: Mas sachusetts basis adjustment increases should be reported as negative and Massachusetts basis ad justment decreases should be reported as positive in line 10a). Line 10c. Total Massachusetts Adjustments Enter the amount from line 10a. Line 11. Massachusetts Capital Gains and Losses Exclude/subtract line 10c from line 9 and enter the result in line 11. ◗ If line 9 is positive and line 10c is positive, sub tract line 10c from line 9. ◗ If line 9 is positive and line 10c is negative, add line 10c as a positive value to line 9. ◗ If line 9 is negative and line 10c is negative, sub tract line 10c from line 9. ◗ If line 9 is negative and line 10c is positive, add line 10c as a negative value to line 9. Line 12. Long-Term Gains on Collectibles and Pre-1996 Installment Sales Enter in line 12 the amount of long-term gains on collectibles and pre-1996 installment sales clas sified as capital gain income for Massachusetts purposes that are included in line 11. Long-term gains on collectibles and pre-1996 in stallment sales classified as capital gain income for Massachusetts purposes are taxed at the 12% rate and should be entered on Schedule B, line 11. Collectibles are defined as any capital asset that is a collectible within the meaning of IRC § 408(m), as amended and in effect for the taxable year, in cluding works of art, rugs, antiques, metals, gems, stamps, alcoholic beverages, certain coins, and any other items treated as collectibles for federal tax purposes. Line 13. Subtotal Subtract line 12 from line 11 and enter the result in line 13. If Schedule D, line 13 is a loss and Schedule B, line 21 is less than 0, omit Schedule D, lines 14 through 16, enter the amount from Schedule D, line 13 in Schedule D, line 17, omit Schedule D, lines 18 through 22 and enter the amount from Schedule D, line 17 in Schedule D, line 23, and enter 0 on Form 1, line 24. If Schedule D, line 13 is a gain and Schedule B, line 21 is a loss, go to Schedule D, line 14. If Schedule D, line 13 is a loss and Schedule B, line 24 is 0 or greater, go to Schedule D, line 14. If Schedule D, line 13 is a gain, and Schedule B, line 24 is 0 or greater, omit Schedule D, lines 14 through 16 and enter the amount from Schedule D, line 13 in Schedule D, line 17. 2024 Form 1 Instructions 27
Line 14. Capital Losses Applied Against Capital Gains If Schedule D, line 13 is a positive amount and Schedule B, line 21 is a loss, enter the smaller of Schedule D, line 13 or Schedule B, line 21 (con sidered as a positive amount) in Schedule D, line 14 and in Schedule B, line 22. If Schedule D, line 13 is a loss and Schedule B, line 24 is a positive amount, enter the smaller of Schedule D, line 13 (considered as a positive amount) or Schedule B, line 24 in Schedule D, line 14 and in Schedule B, line 25. Line 15. Subtotal If line 13 is greater than 0, subtract line 14 from line 13. If line 13 is less than 0, combine lines 13 and 14. If Schedule D, line 15 is a loss and Schedule B, line 24 is 0 or greater and Schedule B, line 31 is a posi tive amount, go to Schedule D, line 16. If Schedule D, line 15 is a loss, and Schedule B, line 21 is 0 or less, omit Schedule D, line 16, enter the amount from Schedule D, line 15 in Schedule D, line 17, omit Schedule D, lines 18 through 22 and enter the amount from Schedule D, line 17 in Schedule D, line 23, and enter 0 on Form 1, line 24. Line 16. Long-Term Capital Losses Applied Against Interest and Dividends If Schedule D, line 15 is a loss, and Schedule B, line 24 is 0 or greater and Schedule B, line 31 is a positive amount, complete the Long-Term Capi tal Losses Applied Against Interest and Dividends Worksheet for Schedule B, Line 32 and Schedule D, Line 16 on page 26. Line 17. Subtotal Combine line 15 and line 16. If Schedule D, line 17 is 0, enter 0 in lines 18 through 21 and omit lines 22 and 23. If Schedule D, line 17 is a loss, omit lines 18 through 22 and enter the amount from line 17 in line 23. Line 18. Allowable Deductions From Your Trade or Business Enter the appropriate amount from Massachu setts Schedule C-2 if you qualify for an excess trade or business deduction. Generally, taxpay ers may not use excess 5.0% deductions to offset other income. However, where the taxpayer files a Massachusetts Schedule C or Schedule E, Massa chusetts law allows such offsets if the following requirements are met: the excess 5.0% deduc tions must be adjusted gross income deductions allowed under MGL ch 62, § 2(d); and these ex cess deductions may only be used to offset other income which is effectively connected with the ac tive conduct of a trade or business or any other in come allowed under IRC, § 469(d)(1)(B) to offset losses from passive activities. Line 20. Excess Exemptions Enter in line 20 the amount from line 8 of the Schedule B, Line 36 and Schedule D, Line 20 Worksheet on page 11 (only if single, head of household or married filing joint return). Line 22. Tax On Long-Term Capital Gains Multiply line 21 by 0.05 and enter the result here and in Form 1, line 24. Note: If choosing the optional 5.85% tax rate, mul tiply line 21 by 0.0585 and enter the result here and in Form 1, line 24. Line 23. Available Losses for Carryover Enter the amount from Schedule D, line 17, only if it is a loss. Schedule C Note: If showing a loss, be sure to mark over the X in the box to the left. Also, be sure to enclose with Form 1. Substituting U.S. Schedule C U.S. Schedule C is not allowed as a substitute for Massachusetts Schedule C. Profit or Loss from Business or Profession Massachusetts Schedule C is provided to report income and deductions from each business or profession operated as a sole proprietorship. If your business deductions, excluding the Aban doned Building Renovation Deduction, exceed Schedule C income and any other income taxable at the 5.0% rate, such excess deductions may be subtracted from the other income that is effec tively connected with the active conduct of your trade or business and any other income allowed under IRC § 469(d)(1)(B) to offset losses from passive activities. To compute the excess trade or business deductions use Massachusetts Schedule C-2. This form is available by visiting mass.gov/ dor, or you may have one mailed to you by calling (617) 887-6367. Registration Information In the space provided, describe the business or professional activity that provided your principal source of income reported on line 1. If you owned more than one business, you must complete a separate Schedule C for each business. Give the general field or activity and the type of product or service. Employer Identification Number You need an Employer Identification number (EIN) only if you had a Keogh plan, were required to file an employment, excise, estate, trust, or alcohol, tobacco and firearms tax return or employ con tract labor. If you do not have an EIN, leave the line blank. Do not enter your Social Security number. Accounting Method If you filed a return on the accrual basis last year, your return for this year must be on the same basis. If a taxpayer requesting permission to change an accounting method for Massachusetts purposes is eligible for an automatic change of accounting method federally, and has correctly followed the most recently issued federal revenue procedure for requesting an automatic change, then the taxpayer should file his/her annual return using the new method and write at the top, “Au tomatic Change of Accounting Method — filed in compliance with DD 02-13.” The taxpayer should enclose a copy of U.S. Form 3115, together with any required statements. See DD 02-13 for fur ther information. See also, TIR 19-6: Impact of the Federal Tax Cuts and Jobs Act on a Taxpay er’s Overall Method of Accounting for Massachu setts Purposes. Material Participation Indicate if you materially participated in the op eration of this business during 2024. If you did not materially participate and have a loss from this business, see line 33 for further instructions. Started or Acquired this Business Indicate if you started or acquired this business in 2024. Also, fill in the oval if you are reopening or restarting this business after temporarily clos ing it, and you did not file a 2023 Schedule C for this business. Suspended Passive-Activity Loss Indicate if you have any suspended passive-activ ity losses that relate to the schedule being com pleted. See TIR 89-2 for further information and line 36 instructions. Small Business Energy Exemption If you are claiming the small business energy ex emption from the sales tax on purchases of tax able energy or heating fuel during 2024, you must have five or fewer employees. You must enter the number of your employees in the space provided. Statutory Employee If you received a Form W-2 and the “Statutory em ployee” box in item 13 of that form was checked, report your income and expenses related to that income on Schedule C. Enter your statutory em ployee income from box 1 of Form W-2 on line 1a of Schedule C and fill in the oval. Statutory em ployees include full-time life insurance agents, certain agent or commission drivers and travel ing salespersons and certain homeworkers. If you had both self-employment income and statutory 2024 Form 1 Instructions 28
employee income, do not combine these amounts on a single Schedule C. In this case, you must file separate Schedule Cs. Interest (other than from Massachusetts banks) and Dividend Income If you have interest (other than from Massachu setts banks) and dividend income reported on U.S. Schedule C, lines 1 and/or 6, fill in the oval and enter that amount in the space provided and in Massachusetts Schedule B, line 3. Do not include such amounts on Massachusetts Schedule C, lines 1 and/or 4. Examples of interest (other than from Massachusetts banks) and dividend income are interest received on loans, notes receivable or charge accounts that you accept in the ordinary course of business, and dividends on stocks re ceived in payment for goods and services. Capital gains from the sale or exchange of assets used in your business are not reported on Schedule C. Use U.S. Form 4797 and report the amount in Form 1, Schedule B and/or Schedule D. You must also exclude from Schedule C any income and expenses that pertain to activities for yourself as distinguished from those performed for your cus tomers. Such income must be reported by class of income in Schedules B and D. Personal expenses are not deductible. Line 1a. Gross Receipts or Sales In the boxes provided, enter gross receipts or sales from your business. Be sure to include on this line amounts you received in your trade or business as shown on Form 1099-MISC, Miscel laneous Income. If the nature of your business is such that you have gross or other income that is interest (other than from Massachusetts banks) and dividend income, exclude this income from lines 1 and 4 on Massachusetts Schedule C and include it in the space provided and in Schedule B, line 3. Note: Personal expenses are not deductible. To de termine if you need to file Schedule B, refer to the Schedule B instructions in this booklet. Line 4. Other Income If you received bartering income, you must report the fair market value of goods or services received in payment for your goods and services in line 4. Do not include interest income (other than from Massachusetts banks) and dividends here. Line 7. Bad Debts From Sales or Services Include debts and partial debts from sales or ser vices that were included in income and are defi nitely known to be worthless. If you later collect a debt that you deducted as a bad debt, include it as income in the year collected. Note: Cash method taxpayers cannot take a bad debt deduction unless the amount was previously included in income. Line 9. Commissions, Fees and Contract Labor Line 9a. Commissions and Fees Enter the total commissions and fees for the tax year. Do not include commissions or fees that are capitalized or deducted elsewhere on your return. Line 9b. Contract Labor Enter the total cost of contract labor for the tax year. Contract labor includes payments to persons you do not treat as employees (for example, inde pendent contractors) for services performed for your trade or business. Do not include contract labor deducted elsewhere on your return, such as contract labor included on line 15, 19, 25, or Schedule C-1, line 3. Also, do not include salaries and wages paid to your employees; instead, see Line 25, later. Line 11. Depreciation and § 179 Deduction Massachusetts adopts the current federal §179 rules for expensing certain depreciable business assets. The maximum § 179 expensing allowance is $1,220,000. Line 17. Pension and Profit-Sharing Plans Enter your deduction for contributions to a pen sion, profit-sharing or annuity plan, or plans for the benefit of your employees. If the plan includes you as a self-employed person, do not include contributions made as an employer on your be half. See DD 08-3 for more information. Line 22. Travel Enter your expenses for lodging and transporta tion connected with overnight travel for business while away from your tax home. Generally, your tax home is your main place of business regard less of where you maintain your family home. You cannot deduct expenses paid or incurred in con nection with employment away from home if that period of employment exceeds one year. Spouse’s and other family members’ travel expenses are generally disallowed as a business deduction. Do not include expenses for meals and entertain ment on this line. Line 23. Deductible Meals Your deductible business meal expenses are a per centage of your actual business meal expenses. Include meals while traveling away from home for business. Instead of the actual cost of your meals while traveling away from home, you may use the standard meal allowance. Business meal expenses are deductible only if they are: ◗Directly related to or associated with the con duct of your trade or business; ◗ Not lavish or extravagant; and ◗ Incurred while you or your employee is present at the meal. Generally, you may deduct only 50% of your busi ness meal expenses, including meals incurred while traveling away from home on business. Business meals are 100% deductible if: ◗The meals and incidentals are furnished or re imbursed to an employee if you properly treat the expense as wages subject to withholding; and ◗The meals and incidentals are provided to a nonemployee to the extent the expenses are in cludible in the gross income of that person and reported on Form 1099-NEC. For individuals subject to the Department of Trans portation (DOT) hours of service limits, the per centage is 80% of business meals consumed during, or incident to, any period of duty for which those limits are in effect. Daycare providers can deduct 100% of the actual cost of food consumed by daycare recipients. Providers who qualify as family daycare provid ers may use the standard meal and snack rates to compute their deductible meals and snacks. Figure how much of your business meal expenses are subject to limitations, add that amount to your fully deductible meals amount and enter the result in line 23 of Massachusetts Schedule C. Schedule C, Line 23 Worksheet 1. 100% deductible meals. . . . . . 2. 80% deductible meals. . . . . . . 3. 50% deductible meals. . . . . . . 4. Total deductible meals. Add lines 1 through 3 Enter here and on Schedule C, line 23 . . . . . . . . . . . Line 26. Other Expenses Ordinary and Necessary Business Expense De ductions Available for Licensed Massachusetts Marijuana Businesses IRC § 280E prohibits marijuana businesses from deducting expenses and claiming tax credits for federal tax purposes. Effective for taxable years beginning on or after January 1, 2023, Massachu setts decoupled from the IRC § 280E deduction disallowance with respect to licensed marijuana 2024 Form 1 Instructions 29
businesses only. As a result, for Massachusetts tax purposes, a licensed Massachusetts marijuana business can deduct ordinary and necessary busi ness expenses that would otherwise be disallowed under IRC § 280E. These ordinary and necessary trade or business expenses should be reported on Schedule C, Line 26 “Other expenses.” Line 30. Abandoned Building Renovation Deduction Massachusetts allows businesses to deduct 10% of the costs incurred in renovating certain build ings located in an Economic Opportunity Area (EOA). The buildings must be designated as aban doned by the Economic Assistance Coordinating Council. The renovation deduction may be taken in addition to any other deduction for which the ren ovation costs may qualify. For more information, contact the Massachusetts Office of Business De velopment by calling (617) 973-8600. In line 30 enter 10% of the costs of renovating a qualifying abandoned building. Line 31. Profit or Loss Subtract the total of line 29 and line 30 from line 28. If a profit enter here and on line 34. If a loss enter here and go to line 32. Line 32. Deductible Loss. If line 31 is a loss do not enter the loss in line 32 until you have applied the at-risk rules and the passive-activity loss rules. (For the at-risk rules, see instructions for line 33. For the passive-activity loss rules, see instructions for U.S. Form 8582.) The amount on line 32 will be your deductible loss; note that it might be smaller than the line 31 loss. Line 33. If You Have a Loss Fill in the oval in line 33a if all of your investment is at risk. Enter your loss from line 31 on line 32. If you did not fill in the oval to this question, com plete a pro forma copy of U.S. Form 8582 that re flects only income being reported on your Mas sachusetts return. Enter in Massachusetts Sched ule C, line 32 your allowable loss calculated on Form 8582. Fill in the oval in line 33b if only some of your in vestment is at risk. To determine the amount of your allowable loss, complete a pro forma copy of U.S. Form 6198 that reflects only income being reported on your Massachusetts return. Enter the amount calculated on U.S. Form 6198 in line 32. If you did not materially participate in the operation of this business, your loss is further limited. Use the amounts calculated on your pro forma U.S. Form 6198 to complete a pro forma U.S. Form 8582. If your at-risk amount is 0 or less, enter 0 in line 32. Line 34. Profit Enter the profit from line 31. Line 35. Total Profit or Loss. If line 31 is a profit enter the amount from line 34. If line 31 is a loss enter the amount from line 32. Line 36. Allowable Prior-Year Suspended PAL If your gross income is more than your expenses and you do not have prior-year unallowed pas sive-activity losses, enter 0 in line 36. If your gross income is more than your expenses and you have prior-year unallowed passive-activ ity losses, calculate the amount of Massachusetts prior-year unallowed passive-activity losses claim able for this activity. Use a pro forma version of U.S. Form 8582 to calculate the amount of eligible Massachusetts prior-year unallowed passive-ac tivity losses (PAL). If you are claiming PAL, enter the amount of those allowable prior-year sus pended PAL you are applying in line 36. Line 37. Net Profit or Loss. Combine lines 35 and 36, then include on Form 1, line 6a. Schedule CB What Is It? Senior citizens in Massachusetts may be eligible to claim a refundable credit on their state income taxes for the real estate taxes they paid on the Massachusetts residential property they own or rent and which they occupy as their principal resi dence. The maximum credit allowed is $2,730 for the tax year beginning January 1, 2024. See TIR 24-10 for more information. Eligible taxpayers who own their property may claim a credit equal to the amount by which their property tax payments in tax year 2024 (exclud ing any exemptions and/or abatements), including water and sewer debt charges, exceed 10% of their total income for the same current tax year. Taxpay ers residing in communities that do not include water and sewer debt service in their property tax assessments may claim, in addition to their prop erty tax payments, 50% of the water and sewer use charges, including stormwater fees, actually paid during the tax year when figuring their credit. Renters may claim a credit in the amount by which 25% of their annual rental payment is more than 10% of their total income. If your principal residence is held in trust If your principal residence is owned by a grantor trust, and either you or your spouse is a trustee, then you would qualify as a homeowner. If your principal residence is owned by a grantor trust, and you or your spouse are not Trustees, then renter rules are applied when determining the allowable credit. For example, you're a former owner who creates a life estate and puts property into the trust for your children's benefit. Generally, if you're under the terms of the trust, you pay to the trust in lieu of rent, you may treat these payments the same as if they were rent and should follow the renter rules when filing for the credit. Renter rules also apply if the principal residence is owned by an irrevocable trust, regardless of whether you or your spouse is a trustee Who Is Eligible for the Credit? To be eligible for the credit for the 2024 tax year, a taxpayer must be 65 years of age or older before January 1, 2025, (for joint filers, it is sufficient if one taxpayer is 65 years of age or older), must own or rent residential property in Massachusetts and occupy the property as his or her principal residence, and must not be the dependent of an other taxpayer. The taxpayer’s total income can not exceed $72,000 for a single filer who is not the head of a household, $91,000 for a head of household, or $109,000 for taxpayers filing jointly. No credit is allowed for a married taxpayer unless a joint return is filed. Moreover, the assessed valu ation of the real estate cannot exceed $1,172,000. No credit is allowed if the taxpayer claims the sta tus of married filing separate, receives a federal or state rent subsidy, rents from a tax-exempt entity, or is the dependent of another taxpayer. Note: Make sure the over age 65 oval(s) is filled in on Form 1, line 2c. Is the Tax Credit Considered Income? Tax credits received by eligible taxpayers are not considered income for the purpose of obtaining eligibility or benefits under other means-tested as sistance programs including food, medical, hous ing, energy and educational assistance programs. How Does a Taxpayer Claim the Credit? Taxpayers who are eligible for the tax credit in the 2024 tax year can claim the credit by submitting a completed Schedule CB, Circuit Breaker Credit, with their 2024 state income tax return. Eligible taxpayers who do not normally file a state income tax return may obtain a refund by filing a return with Schedule CB. As with all claimed tax credits and deductions, the taxpayer must keep all perti 2024 Form 1 Instructions 30
nent records, receipts and other documentation supporting his or her claim for the credit. Line 1. Living Quarters Status During 2024 Be sure to fill in the appropriate oval. If you were a renter in 2024 and you received any federal and/or state subsidy, or you rent from a tax-exempt entity, you do not qualify for the Circuit Breaker Credit. Homeowners must fill in the appropriate oval to indicate if they owned a multi-use or multi-family property or if their land exceeds one acre. A tax payer who owns a principal residence with a land area in excess of one acre or a multi-use build ing or land area, for example, a storefront with an apartment above, may only claim the taxpayer’s proportional share of the real estate tax payments (Schedule CB, line 10), including water and sewer use charges (Schedule CB, line 13), which corre sponds to the portion of the residence used and occupied as principal residence. A taxpayer who owns a multiple family dwelling (a multi-family residence that includes the taxpayer’s personal residence), may only claim the taxpayer’s propor tional share of the taxes (Schedule CB, line 10) or sewer and water use charges (Schedule CB, line 13) paid. For example, where a condominium as sociation pays one sewer and water bill for multi ple owners, each owner may only claim the pro portional share of the use charges attributable to the taxpayer’s condominium (for example, the condominium owner’s percentage interest in the undivided interest of common areas and facilities). Line 2. Assessed Value of Principal Residence as of January 1, 2024 Enter the amount of the assessed value of your principal residence as of January 1, 2024. If you own a multi-family home, mixed-use property, or more than one acre of land, only the assessed value of your principal residence, together with the land that immediately surrounds and is associated with that residence, not to exceed one acre, should be used (see worksheet in Schedule CB instruc tions). If the assessed value is over $1,172,000, you do not qualify for the credit. Contact your local city or town’s assessors’ office if you have any questions in determining the amount of the assessed value of your principal residence as of January 1, 2024. Income Calculation Qualifying income for the Circuit Breaker Credit (Schedule CB, lines 3 through 9) is the taxpayer’s Massachusetts AGI as defined in MGL ch 62, § 2 increased by various amounts that may have been excluded or subtracted when originally calculating the taxpayer’s Massachusetts AGI, less certain ex emptions claimed by the taxpayer. Amounts added back to Massachusetts AGI in computing qualify ing income include income from Social Security, retirement, pension or annuities, cash public as sistance, tax-exempt interest and dividends, net capital losses, long-term capital losses, certain capital gains, income from a partnership or trust not otherwise included in the taxpayer’s Massa chusetts AGI, and gross receipts (for example, the return of capital or gifts) from any other source except the tax credit itself. The exemptions allowed which decrease the total income amount are those allowed for blindness, dependents and taxpayers who are at least age 65 by the end of the tax year. Line 4. Total Social Security Benefits Enter in line 4 the amount of Social Security ben efits received in 2024. Social Security benefits include retirement, disability, dependent, survi vorship and insurance. Medicare premiums with held from Social Security payments should not be excluded. Line 5. Pension, Annuities, IRA/Keogh Distributions Not Taxed on Your Massachusetts Tax Return Enter in line 5 the amount of pension, annuities, IRA/Keogh distributions not taxed on your Massa chusetts Form 1. See Form 1, line 4 instructions, Pension and Annuities, for a list of exempt items that must be included in Schedule CB, line 5 as part of total income for the purposes of calculating the Circuit Breaker Credit. Line 6. Miscellaneous Income Including Cash Public Assistance Enter the amount of miscellaneous income, in cluding cash public assistance, received during 2024. This includes but is not limited to food stamps and welfare payments, disability income, gifts, sick pay, worker’s compensation and return of capital. Line 9. Total Qualifying Income Total income is not the same as taxable income for purposes of the tax credit, a taxpayer’s total qualifying income includes taxable income as well as exempt income such as Social Secu rity, Treasury bills and public pensions. For a complete list of what constitutes total qualify ing income to calculate your total income and determine if you qualify for the credit, please visit our website at mass.gov/info-details/ massachusetts-senior-circuit-breaker-tax-credit. Credit Calculation If you filled in the Homeowner oval in line 1, com plete lines 10 through 17, if you filled in the Renter oval in line 1, go to line 18. Line 10. Real Estate Taxes Paid in Calendar Year 2024 for Your Principal Residence Enter the amount of real estate taxes paid in cal endar year 2024. Be sure to include real estate tax payments made pursuant to the Community Preservation Act, the Cape Cod Open Space Land Acquisition Program and/or paid to a tax-levy ing district. If you own a multi-family home, mixed-use prop erty, or your principal residence has a land area in excess of one acre, see TIR 01-19 for information on how to prorate real estate taxes paid. If your property is in Excess of one acre, please see the schedule CB line 10 property in excess of one acre Real Estate Tax Calculation worksheet in the Schedule CB instructions. Note: Real estate taxes paid in a calendar or tax able year generally reflect taxes assessed for two different fiscal years. If a community collects taxes quarterly, a taxpayer may have made four payments during a calendar year. These payments are billed as due on the following dates: February 1, May 1, August 1, and November 1. If a commu nity collects taxes semi-annually, a taxpayer may have made two payments during the calendar year. The first payment is billed as due on May 1 and the second as due on November 1, or 30 days after it is mailed, if the bill is mailed after October 1. If you own a multi-family home, mixed-use property, or your principle residence has a land area in ex cess of one acre, contact your local city or town’s collector’s office if you have any questions in de termining the amount of real estate taxes paid in calendar year 2024 for your principal residence. Line 11. Adjustments to Real Estate Taxes Paid Enter the amount from line 4 of the Adjustments to Real Estate Taxes Paid Worksheet for Schedule CB, line 11, on page 2 of Schedule CB. Adjust ments to real estate taxes paid include: ◗Abatements granted by local assessors or earned through the Senior Work Program (do not exclude this amount if it was already reflected on your tax bill and you did not pay it); ◗Exemptions granted by cities or towns to qual ifying veterans, surviving spouses, blind persons and the elderly (do not exclude this amount if it was already reflected on your tax bill and you did not pay it); ◗Interest charges assessed due to delinquent payments; and ◗Betterments or special assessments levied upon the property. Line 13. Water and Sewer Use Charges Paid in 2024 Contact your town official to determine if your community has elected to include water and sewer debt charges in the property tax assessment. Tax payers residing in communities that do not include 2024 Form 1 Instructions 31
water and sewer debt charges in the property tax assessments may include 50% of the actual water and sewer use charges, including stormwater fees, paid during the taxable year. If they have elected to include those charges in the property tax assessment, enter 0 in line 13. If they have not elected to include those charges, enter 50% of your actual water and sewer use charges paid in 2024 in line 13. If you own a multi-family home, mixed-use prop erty, or your principal residence has a land area in excess of one acre, see TIR 01-19 for information on how to prorate water and sewer use charges. Line 18. Rent Paid for Your Principal Residence in 2024 Enter in line 18a the total amount of rent paid for your principal Massachusetts residence in 2024. Divide that amount by 4 (25%) and enter the result in line 18. In the space provided, be sure to enter your landlord’s name and address. If you received any federal and/or state rent subsidy, or you rent from a tax-exempt entity, you do not qualify for the Circuit Breaker Credit. Schedule CMS Be sure to enclose with Form 1. Credit Manager Schedule You must complete Schedule CMS to claim most credits available for use in the current taxable year (the Child and Family, Earned Income, Limited In come and Circuit Breaker Tax credits are claimed directly on the tax return). Credits may be used to offset a tax due, may be passed or shared with another person or entity, or, in some cases credits may be fully or partially refundable. For each credit claimed on a Schedule CMS, report the amount of the credit available for use and the amount of credit claimed to reduce tax for the cur rent taxable year. For pass-through entities, report the amount of credit distributed to partners/share holders/beneficiaries in the credit shared column. Taxpayers also report the amount of a refundable credit they are using to request a refund of tax. See the Credit Manager Schedule Instructions for more information on how to complete the Sched ule CMS and claim the credits. Credits reported on the Schedule CMS are gen erally identified either by a certificate number as- signed by the issuing agency (which may be the Department of Revenue) or by the tax period end date in which the credit originated. If a credit has been assigned a certificate number, the certificate number must be included on the Schedule CMS. A taxpayer that does not include an assigned cer tificate number on the Schedule CMS will not be allowed the credit on the tax return and will have their tax liability adjusted by the Department of Revenue. Be sure to omit hyphens, spaces, deci mals and other special symbols when entering the certificate number. Also, enter the number from left to right. Likewise, a taxpayer that is required to complete a separate schedule to claim a credit must include the separate schedule with the taxpayer’s return filing. Failure to do so may result in the credit being disallowed. If, by operation of MGL ch 63, § 32C or another provision of law, a credit normally identified by tax period end date is eligible for indefinite carryover, the credit should be reported as “non-expiring” and identification of the tax period of origin is not necessary. Overview of Schedule CMS The following is a brief overview of the Schedule CMS sections and where certain credits should be reported. If a taxpayer is using a credit to reduce a taxpayer’s current year tax liability, whether it is a non-refundable credit or a refundable credit, the credit should be reported in Section 1 or 3 of the Schedule CMS. Only a refundable credit that the taxpayer is seeking a refund for should be re ported in either Section 2 or 4 of the Schedule CMS. Generally, a credit should only be reported in one section on the Schedule CMS unless a por tion of it is being used to offset a tax and a portion is being refunded. Section 1. Non-Refundable Credits Section 1 is for reporting credits the taxpayer is using (i) to offset or reduce the taxpayer’s total tax due (ii) to pass to any partner, shareholder or beneficiary of the taxpayer or (iii) to share with taxpayer affiliates. The Brownfields Credit, Film Incentive Credit, or Medical Device Credit should always be included in Section 1, unless the tax payer is requesting a refund of the Film Incentive Credit. However, a taxpayer that received a credit on a Massachusetts K-1 schedule from a pass- through entity or a credit transfer should report such credit in Section 3 or 4, as applicable. Section 2. Refundable Credits Section 2 is for reporting refundable credits the taxpayer is using to request a refund. The Film In centive Credit should always be included in Sec tion 2 to the extent that the taxpayer is requesting a refund. However, a taxpayer that received a re fundable credit on a Massachusetts K-1 from a pass-through entity or a credit transfer should re port such credit in Section 4, to the extent that the taxpayer is requesting a refund. For each refund able credit, report the amount of the credit avail 2024 Form 1 Instructions 32 Schedule CMS, Example 1 2a. Credit type 2b. Period end date (mm/dd/yyyy) 2c. Certificate number 2d. Credit available or certificate balance 2e. Reduction in balance for refund 21. Refundable credit taken (100% or 90%) RMCFO 0000000011 $10,000 $10,000 $9,000 CN3.ND 1110000000 $ 1,000 $ 1,000 $1,000 The total of the amounts shown in column fare shown on the appropriate line of the taxpayer's return. Schedule CMS, Example 2 1a. Credit type 1b. Fill in ii non-expiring 1 c. Period end date (mm/dd/yyyy) 1 d. Certificate number 1e. Credit available or certificate balance 11. Credit taken this year 1 g. Credit shared this year 0 12/31/2024 $18,000 $4,000 I..El'D PAINT 0 12/31/2024 $1,000 $1,000 The Credit Manager Schedule will now also be used by individual taxpayers for certain credits. In Example 2, the taxpayer is an individual filing a return for the taxable year ending December 31, 2024 and has an available Septic Credit of $18,000 in the current year. Since this is the first year the taxpayer is claiming the Septic Credit the individual taxpayer must also enclose a Schedule SC. The individual should file Part 1 of the Schedule CMS to reflect a claimed credit of $4,000 (Schedule SC, line 13).
able after taking into consideration any amount of the credits that may have been taken to offset a tax or shared as reported in Section 1 of this sched ule. Enter the amount by which the available credit balance is being reduced and the amount to be treated as a refundable credit, which may be ei ther 90% or 100% of the reduction. See TIR 13-6, Example 3, for an illustration. Section 3. Non-Refundable Credits Received from Massachusetts K-1 Schedules Section 3 is for reporting credits the taxpayer re ceived on a Massachusetts K-1 schedule (SK-1, 2K-1 or 3K-1) that the taxpayer is using (i) to offset or reduce the taxpayer’s total tax due (ii) to pass to any partner, shareholder or beneficiary of the taxpayer or (iii) to share with taxpayer af filiates. The Brownfields Credit, Film Incentive Credit, or Medical Device Credit should never be included in Section 3. Note: You do not report the Brownfields Credit, Film Incentive Credit, and Medical Device Credit in this section because these credits are issued new certificate numbers from the Department of Rev enue when they are received from a pass-through entity or a credit transfer. These credits should al ways be reported in Section 1, unless the taxpayer is requesting a refund of the Film Incentive Credit. Section 4. Refundable Credits Received from Massachusetts K-1 Schedules Section 4 is for reporting credits the taxpayer re ceived on a Massachusetts K-1 schedule (SK-1, 2K-1 or 3K-1) and that the taxpayer is using to re quest a refund. The Film Incentive Credit should never be included in Section 4. For each refund able credit, report the amount of the credit avail able after taking into consideration any amount of the credits that may have been used to offset a tax or shared as reported in Section 3 of this schedule. Enter the amount by which the available credit balance is being reduced and the amount to be treated as a refundable credit, which may be ei ther 90% or 100% of the reduction. See TIR 13-6, Example 3, for an illustration. Note: You do not report the refundable Film Incen tive Credit in this section because these credits are issued new certificate numbers from the Depart ment of Revenue when they are received from a pass-through entity or a credit transfer. If the tax payer is requesting a refund of the Film Incentive Credit, it should be reported in Section 2. Credit Table The Credit Table located at the end of these in structions lists all of the Massachusetts credit types with their respective attributes. Credits that may be available to a taxpayer subject to tax under MGL ch 62 must be claimed on Schedule CMS. The taxpayer should refer to this table for guidance when completing Schedule CMS.
2024 Form 1 Instructions 33
Credit name
Requirements
Refundable?
Credit type a. MGL Chapter
Section b. MGL Chapter Section Angel Investor*** Certificate number* No AGLCRD 62 6(t) Apprenticeship Certificate number Yes, at 100% APPCRD 62 6(v) 63 38HH Brownfields Certificate number No BRWFLD 62 6(j) 63 38Q Certified Housing Certificate number No CRTHOU 62 6(q) 63 38BB Community Investment Certificate number Yes, at 100% CMMINV 62 6M 63 38EE Conservation Land Certificate number Yes, at 100% CNSLND 62 6(p) 63 38AA Cranberry Bog Renovation Certificate number Yes, at 100% CRBCRD 62 6(w) 63 38II Dairy Farm Certificate number Yes, at 100% DAIFRM 62 6(o) 63 38Z Disability Employment Period end date Yes DETCRD 62 6(z) 63 38JJ
EDIP Certificate number and Schedule EDIP** If authorized, at 100% EDIPCR 62 6(g) 63 38N EDIP-Vacant Store Front Certificate number Yes, at 100% VACSTR 62 6(g) 63 38N
EOAC Period end date and Schedule EOAC** If authorized EOACCR 62 6(g) 63 38N
Farming and Fisheries Period end date and Schedule FAF** No FRMFSH 62 6(s) Film Incentive Certificate number If authorized, at 90% FLMCRD 62 6(l) 63 38X
Harbor Maintenance**** Period end date No HRBMNT
63 38P Historic Rehabilitation Certificate number No HISRHB 62 6J 63 38R
Investment Tax Period end date and Schedule H** No INVTAX
63 31A
Lead Paint Period end date and Schedule LP** No LEDPNT 62 6(e)
Life Science (FDA) Period end date and Schedule RLSC** If authorized, at 90% LFSFDA 62 6(n) 63 31M
Life Science (ITC) Period end date and Schedule RLSC** If authorized, at 90% LFSITC 62 6(m) 63 38U
Life Science (Jobs) Period end date and Schedule RLSC** If authorized, at 90% LFSJOB 62 6(r) 63 38CC
Life Science (RD) Period end date and Schedule RLSC** If authorized, at 90% LFSRDC
63 38W Low-Income Housing Certificate number No LOWINC 62 6I 63 31H Credit Table * As of 2023 the method for reporting the Angel Investor credit on Schedule CMS is by certificate number. Prior to 2023 the method of reporting was by period end date. ** A schedule is required when the credit is generated or awarded in the current year. *** Eligibility for obtaining the Angel Investor Tax Credit has been repealed for tax years beginning on or after January 1, 2024. Taxpayers must continue to report available carryover credits on Schedule CMS to the extent they are allowed to use them. **** Eligibility for obtaining the Harbor Maintenance Tax Credit has been repealed for tax years beginning on or after January 1, 2022. Taxpayers must con tinue to report available carryover credits on Schedule CMS to the extent they are allowed to use them.
Credit name Requirements Refundable? Credit type a. MGL Chapter
Section b. MGL Chapter Section Low-Income Housing Donation Certificate number No LIHDON 62 6I 63 31H Medical Device**** Certificate number No MEDDVC 62 61⁄2 63 31L National Guard Employee Certificate number No NGHCRD 62 6(aa) 63 38KK Offshore Wind Facility Capital Investment Period end date Yes OSWITC 62 6(cc) 63 38MM Offshore Wind Jobs Period end date Yes OSWJTC 62 6(bb) 63 38LL Pass-Through Entity Excise Tax (Form 63D-ELT) Period end date Yes***** ELTCRD 63D 2
Research Period end date and Schedule RC** No REARCH
63 38M
Septic Period end date and Schedule SC** No SEPTIC 62 6(i)
Solar and Wind Energy Period end date and Schedule EC** No SLRWND 62 6(d) Training Tax Certificate number No TTCCRD 62 6(dd)(1) 63 38NN(a)
Vanpool Period end date and Schedule VP** No VANPOL
63 31E Veteran’s New Hire Tax Certificate number No VETHIR 62 6(u) 63 38GG Credit Table ** A schedule is required when the credit is generated or awarded in the current year. **** Eligibility for obtaining the Medical Device Tax Credit has been repealed for tax years beginning on or after January 1, 2022. Taxpayers must continue to report available carryover credits on Schedule CMS to the extent they are allowed to use them. ***** Shareholders, partners, or beneficiaries of an eligible pass-through entity (qualified members) may claim a refundable credit equal to 90% of their allocable share of PTE Excise paid by such pass-through entity. See MGL ch 63D §§ 1-7; TIR 22-6 Pass-through Entity Excise. See also Elective pass- through entity excise FAQs. Note: Certified life sciences companies with a Research Credit exceeding the amount of credit that may be claimed under section 38M for a taxable year may, to the extent authorized under the Life Sciences Tax Incentive Program, elect to make 90% of the balance of remaining credits refundable. See MGL ch 63, § 38M(j). 2024 Form 1 Instructions 35
2024 Massachusetts Income Tax Table at the 5.0% Rate Use this table to calculate tax for taxable 5.0% income {line 21) of not more than $24,000. Line 22 instructions: To find your tax on 5.0% Income (line 22), read down the tax table income column to the line containing the amount you entered in line 21. Then read across to the TAX column and enter this amount in line 22. If your taxable 5.0% income in line 21 is greater than $24,000, multiply the amount by .05. Enter the result in line 22. If your 5.0% income for the tax table is less than $10, your tax is 0. Note: If choosing the optional 5.85% tax rate, multiply line 21 and the amount in Schedule D, line 21 by .0585. INCOME More than But not more than TAX - $ 9 $ 50 $ 1 50 100 4 100 150 6 150 200 9 200 250 11 250 300 14 300 350 16 350 400 19 400 450 21 450 500 24 500 550 26 550 600 29 600 650 31 650 700 34 700 750 36 750 800 39 800 850 41 850 900 44 900 950 46 950 1,000 49 1,000 1,050 51 1,050 1,100 54 1,100 1,150 56 1,150 1,200 59 1,200 1,250 61 1,250 1,300 64 1,300 1,350 66 1,350 1,400 69 1,400 1,450 71 1,450 1,500 74 1,500 1,550 76 1,550 1,600 79 1,600 1,650 81 1,650 1,700 84 1,700 1,750 86 1,750 1,800 89 1,800 1,850 91 1,850 1,900 94 1,900 1,950 96 1,950 2,000 99 2,000 2,050 101 2,050 2,100 104 2,100 2,150 106 2,150 2,200 109 2,200 2,250 111 2,250 2,300 114 2,300 2,350 116 2,350 2,400 119 2,400 2,450 121 2,450 2,500 124 2,500 2,550 126 2,550 2,600 129 2,600 2,650 131 2,650 2,700 134 2,700 2,750 136 2,750 2,800 139 2,800 2,850 141 2,850 2,900 144 2,900 2,950 146 2,950 3,000 149 3,000 3,050 151 3,050 3,100 154 3,100 3,150 156 3,150 3,200 159 3,200 3,250 161 3,250 3,300 164 3,300 3,350 166 3,350 3,400 169 3,400 3,450 171 3,450 3,500 174 3,500 3,550 176 3,550 3,600 179 3,600 3,650 181 3,650 3,700 184 3,700 3,750 186 3,750 3,800 189 3,800 3,850 191 3,850 3,900 194 3,900 3,950 196 3,950 4,000 199 INCOME More than But not more than TAX - $4,000 $4,050 $201 4,050 4,100 204 4,100 4,150 206 4,150 4,200 209 4,200 4,250 211 4,250 4,300 214 4,300 4,350 216 4,350 4,400 219 4,400 4,450 221 4,450 4,500 224 4,500 4,550 226 4,550 4,600 229 4,600 4,650 231 4,650 4,700 234 4,700 4,750 236 4,750 4,800 239 4,800 4,850 241 4,850 4,900 244 4,900 4,950 246 4,950 5,000 249 5,000 5,050 251 5,050 5,100 254 5,100 5,150 256 5,150 5,200 259 5,200 5,250 261 5,250 5,300 264 5,300 5,350 266 5,350 5,400 269 5,400 5,450 271 5,450 5,500 274 5,500 5,550 276 5,550 5,600 279 5,600 5,650 281 5,650 5,700 284 5,700 5,750 286 5,750 5,800 289 5,800 5,850 291 5,850 5,900 294 5,900 5,950 296 5,950 6,000 299 6,000 6,050 301 6,050 6,100 304 6,100 6,150 306 6,150 6,200 309 6,200 6,250 311 6,250 6,300 314 6,300 6,350 316 6,350 6,400 319 6,400 6,450 321 6,450 6,500 324 6,500 6,550 326 6,550 6,600 329 6,600 6,650 331 6,650 6,700 334 6,700 6,750 336 6,750 6,800 339 6,800 6,850 341 6,850 6,900 344 6,900 6,950 346 6,950 7,000 349 7,000 7,050 351 7,050 7,100 354 7,100 7,150 356 7,150 7,200 359 7,200 7,250 361 7,250 7,300 364 7,300 7,350 366 7,350 7,400 369 7,400 7,450 371 7,450 7,500 374 7,500 7,550 376 7,550 7,600 379 7,600 7,650 381 7,650 7,700 384 7,700 7,750 386 7,750 7,800 389 7,800 7,850 391 7,850 7,900 394 7,900 7,950 396 7,950 8,000 399 INCOME More than But not more than TAX - $8,000 $8,050 $401 8,050 8,100 404 8,100 8,150 406 8,150 8,200 409 8,200 8,250 411 8,250 8,300 414 8,300 8,350 416 8,350 8,400 419 8,400 8,450 421 8,450 8,500 424 8,500 8,550 426 8,550 8,600 429 8,600 8,650 431 8,650 8,700 434 8,700 8,750 436 8,750 8,800 439 8,800 8,850 441 8,850 8,900 444 8,900 8,950 446 8,950 9,000 449 9,000 9,050 451 9,050 9,100 454 9,100 9,150 456 9,150 9,200 459 9,200 9,250 461 9,250 9,300 464 9,300 9,350 466 9,350 9,400 469 9,400 9,450 471 9,450 9,500 474 9,500 9,550 476 9,550 9,600 479 9,600 9,650 481 9,650 9,700 484 9,700 9,750 486 9,750 9,800 489 9,800 9,850 491 9,850 9,900 494 9,900 9,950 496 9,950 10,000 499 10,000 10,050 501 10,050 10,100 504 10,100 10,150 506 10,150 10,200 509 10,200 10,250 511 10,250 10,300 514 10,300 10,350 516 10,350 10,400 519 10,400 10,450 521 10,450 10,500 524 10,500 10,550 526 10,550 10,600 529 10,600 10,650 531 10,650 10,700 534 10,700 10,750 536 10,750 10,800 539 10,800 10,850 541 10,850 10,900 544 10,900 10,950 546 10,950 11,000 549 11,000 11,050 551 11,050 11,100 554 11,100 11,150 556 11,150 11,200 559 11,200 11,250 561 11,250 11,300 564 11,300 11,350 566 11,350 11,400 569 11,400 11,450 571 11,450 11,500 574 11,500 11,550 576 11,550 11,600 579 11,600 11,650 581 11,650 11,700 584 11,700 11,750 586 11,750 11,800 589 11,800 11,850 591 11,850 11,900 594 11,900 11,950 596 11,950 12,000 599 INCOME More than But not more than TAX - $12,000 $12,050 $601 12,050 12,100 604 12,100 12,150 606 12,150 12,200 609 12,200 12,250 611 12,250 12,300 614 12,300 12,350 616 12,350 12,400 619 12,400 12,450 621 12,450 12,500 624 12,500 12,550 626 12,550 12,600 629 12,600 12,650 631 12,650 12,700 634 12,700 12,750 636 12,750 12,800 639 12,800 12,850 641 12,850 12,900 644 12,900 12,950 646 12,950 13,000 649 13,000 13,050 651 13,050 13,100 654 13,100 13,150 656 13,150 13,200 659 13,200 13,250 661 13,250 13,300 664 13,300 13,350 666 13,350 13,400 669 13,400 13,450 671 13,450 13,500 674 13,500 13,550 676 13,550 13,600 679 13,600 13,650 681 13,650 13,700 684 13,700 13,750 686 13,750 13,800 689 13,800 13,850 691 13,850 13,900 694 13,900 13,950 696 13,950 14,000 699 14,000 14,050 701 14,050 14,100 704 14,100 14,150 706 14,150 14,200 709 14,200 14,250 711 14,250 14,300 714 14,300 14,350 716 14,350 14,400 719 14,400 14,450 721 14,450 14,500 724 14,500 14,550 726 14,550 14,600 729 14,600 14,650 731 14,650 14,700 734 14,700 14,750 736 14,750 14,800 739 14,800 14,850 741 14,850 14,900 744 14,900 14,950 746 14,950 15,000 749 15,000 15,050 751 15,050 15,100 754 15,100 15,150 756 15,150 15,200 759 15,200 15,250 761 15,250 15,300 764 15,300 15,350 766 15,350 15,400 769 15,400 15,450 771 15,450 15,500 774 15,500 15,550 776 15,550 15,600 779 15,600 15,650 781 15,650 15,700 784 15,700 15,750 786 15,750 15,800 789 15,800 15,850 791 15,850 15,900 794 15,900 15,950 796 15,950 16,000 799 INCOME More than But not more than TAX - $16,000 $16,050 $801 16,050 16,100 804 16,100 16,150 806 16,150 16,200 809 16,200 16,250 811 16,250 16,300 814 16,300 16,350 816 16,350 16,400 819 16,400 16,450 821 16,450 16,500 824 16,500 16,550 826 16,550 16,600 829 16,600 16,650 831 16,650 16,700 834 16,700 16,750 836 16,750 16,800 839 16,800 16,850 841 16,850 16,900 844 16,900 16,950 846 16,950 17,000 849 17,000 17,050 851 17,050 17,100 854 17,100 17,150 856 17,150 17,200 859 17,200 17,250 861 17,250 17,300 864 17,300 17,350 866 17,350 17,400 869 17,400 17,450 871 17,450 17,500 874 17,500 17,550 876 17,550 17,600 879 17,600 17,650 881 17,650 17,700 884 17,700 17,750 886 17,750 17,800 889 17,800 17,850 891 17,850 17,900 894 17,900 17,950 896 17,950 18,000 899 18,000 18,050 901 18,050 18,100 904 18,100 18,150 906 18,150 18,200 909 18,200 18,250 911 18,250 18,300 914 18,300 18,350 916 18,350 18,400 919 18,400 18,450 921 18,450 18,500 924 18,500 18,550 926 18,550 18,600 929 18,600 18,650 931 18,650 18,700 934 18,700 18,750 936 18,750 18,800 939 18,800 18,850 941 18,850 18,900 944 18,900 18,950 946 18,950 19,000 949 19,000 19,050 951 19,050 19,100 954 19,100 19,150 956 19,150 19,200 959 19,200 19,250 961 19,250 19,300 964 19,300 19,350 966 19,350 19,400 969 19,400 19,450 971 19,450 19,500 974 19,500 19,550 976 19,550 19,600 979 19,600 19,650 981 19,650 19,700 984 19,700 19,750 986 19,750 19,800 989 19,800 19,850 991 19,850 19,900 994 19,900 19,950 996 19,950 20,000 999 INCOME More than But not more than TAX - $20,000 $20,050 $1,001 20,050 20,100 1,004 20,100 20,150 1,006 20,150 20,200 1,009 20,200 20,250 1,011 20,250 20,300 1,014 20,300 20,350 1,016 20,350 20,400 1,019 20,400 20,450 1,021 20,450 20,500 1,024 20,500 20,550 1,026 20,550 20,600 1,029 20,600 20,650 1,031 20,650 20,700 1,034 20,700 20,750 1,036 20,750 20,800 1,039 20,800 20,850 1,041 20,850 20,900 1,044 20,900 20,950 1,046 20,950 21,000 1,049 21,000 21,050 1,051 21,050 21,100 1,054 21,100 21,150 1,056 21,150 21,200 1,059 21,200 21,250 1,061 21,250 21,300 1,064 21,300 21,350 1,066 21,350 21,400 1,069 21,400 21,450 1,071 21,450 21,500 1,074 21,500 21,550 1,076 21,550 21,600 1,079 21,600 21,650 1,081 21,650 21,700 1,084 21,700 21,750 1,086 21,750 21,800 1,089 21,800 21,850 1,091 21,850 21,900 1,094 21,900 21,950 1,096 21,950 22,000 1,099 22,000 22,050 1,101 22,050 22,100 1,104 22,100 22,150 1,106 22,150 22,200 1,109 22,200 22,250 1,111 22,250 22,300 1,114 22,300 22,350 1,116 22,350 22,400 1,119 22,400 22,450 1,121 22,450 22,500 1,124 22,500 22,550 1,126 22,550 22,600 1,129 22,600 22,650 1,131 22,650 22,700 1,134 22,700 22,750 1,136 22,750 22,800 1,139 22,800 22,850 1,141 22,850 22,900 1,144 22,900 22,950 1,146 22,950 23,000 1,149 23,000 23,050 1,151 23,050 23,100 1,154 23,100 23,150 1,156 23,150 23,200 1,159 23,200 23,250 1,161 23,250 23,300 1,164 23,300 23,350 1,166 23,350 23,400 1,169 23,400 23,450 1,171 23,450 23,500 1,174 23,500 23,550 1,176 23,550 23,600 1,179 23,600 23,650 1,181 23,650 23,700 1,184 23,700 23,750 1,186 23,750 23,800 1,189 23,800 23,850 1,191 23,850 23,900 1,194 23,900 23,950 1,196 23,950 24,000 1,199
Department of Revenue Resources Where to find help DOR’s website at mass.gov/dor is a valuable resource for tax information 24 hours a day. Thousands of taxpayers use it to find answers to tax questions and to check the status of their refunds. Through MassTaxConnect, taxpayers can make estimated tax payments or review their estimat ed tax payment histories, in addition to many other options. Where to get forms and publications Most Massachusetts tax forms and publications are available via the DOR website at mass.gov/dor/forms. To obtain Massachusetts forms and publications by phone, call DOR’s customer service at (617) 887-6367 or toll-free in Massachusetts at (800) 392-6089. During the income tax filing season, you can pick up Massachusetts personal income tax forms at most local libraries. Forms may also be available at local IRS district offices. Note: Call in advance to check on availability. To obtain federal tax information and forms online, go to irs.gov or call the IRS toll-free at (800) 829-3676. For help in one of the following specific areas ◗ Certificates of Good Standing: Call (617) 887-6400 ◗ Installment Sales: Call (617) 887-6950 ◗ Requests for this publication in an alternative format, such as large print, can be sent to the Problem Resolution Office at (617) 626-3833. Requests for other reasonable accommodations for individuals with disabilities can be directed to the Office of Diversity and Equal Opportunity by phone at (617) 626-3410 or by email at motenkoa@dor.state.ma.us. To report allegations of suspected misconduct or impropriety involving DOR employees, call the Office of Ethics and Employee Responsibility’s Integrity Hotline at (800) 568-0085 or write to PO Box 9567, Boston, MA 02114-9567.
Massachusetts Department of Revenue PO Box 7011 Boston, MA 02204 PRSRT STD
PAID COMMONWEALTH OF MASSACHUSETTS U.S. POSTAGE A Special Message from Revenue Commissioner Geoffrey E. Snyder I hope you find this Form 1 booklet helpful in preparing your taxes. When you are ready to file, please consider electronic filing rather than filing on paper. There are benefits to e-filing your tax return. Last year, almost 95% of Massachusetts taxpayers e-filed their returns. ◗ Refunds can be issued faster to those who e-filed than those filing on paper. ◗ Processing is much faster. ◗ Automatic corrections help you file a more accurate return. ◗ Security features are in place to protect e-filed tax returns. ◗ If you need to pay, you can set up an electronic payment and choose the date. You will save time and a trip to the post office. There are free filing options available for qualifying taxpayers. Please review the opportunities at mass.gov/efile. Rather than filing using the paper form this tax season, consider all your choices, including hiring a tax preparer or filing on your own with approved tax preparation software. I hope that e-filing is your first choice. Sincerely, Commissioner Geoffrey E. Snyder 95.6M 12/24 2025E02PRINTOFF48004 partially printed on recycled paper mass.gov/efile