Exemptions

(b) Deduction and Exemption Ratio . The non-resident's applicable exemption amounts must be totaled and apportioned to Massachusetts. The total exemption amount must be pro-rated by the "deduction and exemption ratio" of the taxpayer's Massachusetts source income to his or her total income. The deduction and exemption ratio is a fraction, the numerator of which is the non-resident's Massachusetts source income and the denominator of which is the non-resident's Massachusetts gross income for the tax year determined as if the taxpayer had been a Massachusetts resident. For more detail, see the instructions to Form 1 NR/PY.

Example (7)(b)(1.1). Taxpayer, an unmarried full year resident of New Hampshire, is over 65 and earns $ 20,000 in Massachusetts source income and $ 10,000 in New Hampshire during the tax year. Taxpayer is entitled to a personal exemption of $3,300 and an additional exemption of $700 for having attained the age of 65 before the close of the tax year. He may claim an exemption amount of $2,667, calculated on the following basis:

$3,300 (personal exemption) + $700 (age 65 exemption) = $4,000; $4,000 x $20,000 (Massachusetts source income)/($20,000 + $10,000) (total income from all sources) = $2,667.

Example (7)(b)(1.2). Husband and Wife are full year residents of Maine during the tax year. Husband has $24,000 of Massachusetts source income. Wife earns $25,000 in Maine and $1,000 in Massachusetts. They have one dependent child. They are entitled to claim an exemption of $3,800, calculated on the following basis:

$6,600 (personal exemption) + $1,000 (dependent child exemption) = $7,600;

$7,600 x ($24,000 + $1,000) (Massachusetts source income)/($24,000 + $25,000 + $1,000) (total income from all sources) = $3,800.

(c) Rules that Apply to a Taxpayer who is both a Non-Resident and Part-Year Resident during a tax year . If during a single tax year an individual changes status from that of resident to that of non-resident, or vice versa, the individual will be required to file one Form 1-NR/PY as both a non-resident and part-year resident. To calculate exemption amounts applicable for the period when the individual was considered a non-resident, refer to the instructions for Form 1-NR/PY.