Massachusetts Form 1-NR/PY Instructions

Form 1-NR/PY Instructions 
Form 1-NR Instructions
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Department of Revenue  | Commonwealth of Massachusetts

2023
Massachusetts
Nonresident or
Part-Year Resident
Income Tax
Turn the page for information on e-filing your return this year.

FORM 1-NR/PY

2023 Form 1-NR/PY Instructions	

Give e-file a try this year!
C’mon, admit it — filing
­paper tax returns is no
fun! So forget about
longer refund wait
times and calculation
­mistakes. E-file this year!
There are three easy and convenient ways to do it.

1

File Electronically for Free

2

Commercial Tax Preparation Software

3

Tax Preparers

Many Massachusetts taxpayers qualify to file both 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. Check out the free filing options available to taxpayers at mass.gov/efile.

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, be sure to contact the software
manufacturer for instructions before filing to avoid having your return rejected. Also, be sure to use the correct 2D
barcode mailing address: PO Box 7000 for refunds/no payments or PO Box 7003 for payments. See DOR’s online
tax form instructions for more in­formation.

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.

mass.gov/efile
New! Fillable PDFs
A popular filing option among taxpayers over the years is the option to file using fillable PDFs. This year, Massachusetts will be bringing that
option to you. With fillable PDFs, you can directly enter your tax information and upon completion, print and send it to DOR. For more
information, see mass.gov/dor/incomeforms.

2023 Form 1-NR/PY Instructions	

Who Must File

You must file Massachusetts Form 1-NR/PY, Nonresident/Part-Year Resident Income Tax Return if
you were not a resident of Massachusetts for any
part of the year and the lesser of either:
1. Your Massachusetts source income was more
than $8,000; or
2. Your Massachusetts source income was more
than your personal exemption amount multiplied
by the ratio of your Massachusetts income to your
total income.
You also must file Form 1-NR/PY if you were a
resident of Massachusetts for part of the year and
you had more than $8,000 in gross income during
that time, whether received from sources inside or
outside of Massachusetts.
To see whether you are a full-year resident, nonresident, part-year resident, or a nonresident and
part-year resident, determine which category applies to you:
1. You are a full-year resident if your residence
(domicile) was in Massachusetts for the entire
taxable year or if you maintained a permanent
place of abode in Massachusetts and during the
year spent more than 183 days, in the aggregate,
in the state. If you fit this description, you should
file Form 1, Massachusetts Resident Income
Tax Return.

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income earned while a nonresident and the portion of income earned while a part-year resident.
Schedule R/NR is included in this booklet.
5.	Fill in the Nonresident composite return oval if
this return is being filed as a composite return on
behalf of nonresident professional athletic team
members. See the instructions on page 9.
For more information on Massachusetts source
income, refer to the section Filing Your Massachusetts Return.

Major 2023
Tax Changes

For more up-to-date and detailed information and
to view all of the public written statements referenced in these instructions, visit mass.gov/dor.

Filing Due Dates

Form 1-NR/PY is due on or before April 17, 2024.
April 15, 2024, when returns and payments would
nor­mally be due, is Pa­triots’ Day, a legal holiday in
the Commonwealth, and April 16, 2024 is Emancipation Day, a legal holiday in Washington, D.C.
As a result, returns, payments made with returns,
and estimated payments otherwise due on April
15, 2024, will be treated as timely if they are filed
and/or paid on or before April 17, 2024.

Annual Update of Circuit Breaker Tax
Credit

Taxpayers aged 65 or older who own or rent residential property located in Massachusetts are allowed 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 taxpayer’s total income. The credit cannot exceed a
certain maximum amount that is determined by
multiplying a statutory base amount by a cost-ofliving adjustment for the calendar year in which
the taxable year begins. Effective for tax years beginning on or after January 1, 2023, the statutory
base amount has been doubled, resulting in an
increase of the maximum credit to $2,590.

2023 Personal Income Tax Rates

The amount of the credit is subject to limitations
based on the taxpayer’s total income and the assessed value of the real estate, which for tax year
2023 must not exceed $1,025,000. For purposes
of calculating the credit, total income and maximum credit thresholds are adjusted annually for
inflation. For tax year 2023, an eligible taxpayer’s
total income cannot exceed $69,000 in the case of
a single filer who is not a head of household filer;
$86,000 in the case of a head of household filer;
and $103,000 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.

4% Surtax on Taxable Income Over $1
Million

Employer-Provided Parking, Transit Pass,
and Commuter Highway Vehicle Benefits
Exclusion Amounts

2.	You are a nonresident if you are not a resident
of Massachusetts as defined above but received
Massachusetts source income (e.g. from a job in
Massachusetts). Fill in the Nonresident oval at the
top of the form if this category applies to you. A
nonresident who is filing Form 1-NR/PY to report
income not included on a Nonresident Composite
Return filed on their behalf also should fill in the
Nonresident oval.

The tax rate on most classes of tax­able 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 shortterm gains from the sale or exchange of capital
assets is 8.5%.

3.	You are a part-year resident if, during the taxable year, you moved to Massachusetts or established a permanent place of abode here and
became a resident, or you terminated your status
as a Massachusetts resident to establish a residence outside the state. Fill in the Part-year resident oval at the top of the form if this category
applies to you.

For tax years beginning on or after January 1,
2023, MGL ch 62 taxpayers must pay an additional 4% (“4% surtax”) on taxable income over
a certain threshold. In 2023, this threshold is
$1,000,000. The threshold is subject to an annual
inflation adjustment. See Technical Information
Release (TIR) 23-12 and the 4% Surtax FAQ for
more information.

4.	If you were a Massachusetts resident for part
of the 2023 tax year, and while you were not a
resident of Massachusetts you received Massachusetts source income (e.g., from a job in
Massachusetts), file as both a nonresident and
part-year resident. Fill in the Filing as both a nonresident and part-year resident oval below the
address section of the form if this category applies to you. Complete Schedule R/NR, Resident/
Nonresident Worksheet, to calculate the portion of

insurance but fail to obtain it are generally subject
to penalties in Massachusetts for each month of
noncompliance in the tax year. The monthly penalties for 2023, which will be imposed through the
individual’s personal income tax return, are set
out in TIR 22-17 and are based on the monthly
insurance premium for which an individual would
have qualified through the Health Connector.

Penalty for Failure to Obtain Health
Insurance

Massachusetts requires most adults 18 and over
with access to affordable health insurance to obtain it. In 2023, individuals must be enrolled in
health insurance policies that meet minimum
creditable coverage standards defined in regulations adopted by the Commonwealth Health Insurance Connector Authority (Health Connector).
Individuals who are deemed able to afford health

Massachusetts conforms to Internal Revenue
Code (“IRC”) § 132(f) as amended and in effect
on January 1, 2022. IRC § 132(f) excludes from
an employee’s gross income (subject to a monthly
maximum adjusted annually for inflation) employer-provided parking, transit pass, and commuter
highway vehicle transportation benefits. The
IRS has determined the 2023 monthly exclusion
amounts to be $300 for employer-provided parking and $300 for combined transit pass and commuter highway vehicle transportation benefits.
See TIR 22-15 for more information.

Reinstatement of the Personal Income Tax
Deduction for Charitable Contributions

For tax years beginning on or after January 1,
2023, a deduction for charitable contributions is
available for MGL ch 62 taxpayers. This deduction

2023 Form 1-NR/PY Instructions	

had been suspended since the 2002 tax year. See
Schedule Y instructions for more details.

Increase to the Rental Deduction

The rental deduction is equal to half of the rent
paid for a principal residence located in Massachusetts in a taxable year. The rental deduction
cannot exceed a maximum amount. For tax years
beginning on or after January 1, 2023, the maximum amount of the rental deduction is $4,000
($2,000 if married filing a separate return). Previously, the maximum amount of the rental deduction was $3,000 ($1,500 if married filing a separate return).

Expansion of the Commuter Deduction

For tax years beginning on or after January 1,
2023, the commuter deduction has been expanded to include expenses incurred for all Massachusetts Bay Transit Authority (“MBTA”) fares,
Massachusetts regional transit authority fares,
fares for any commuter boat owned, operated, or
contracted by a municipality, public or quasi-public entity, agency, or authority, bikeshare memberships, and the cost of bicycles purchased for
commuting (including electric bicycles and bicycle improvements, repairs, and storage). Previously, the deduction was available only for tolls
paid for through a Fast Lane account or for weekly
or monthly MBTA transit commuter passes for
transit, bus, commuter rail, or commuter boat.

Deduction for employer-provided student
loan payment assistance

For tax years beginning on or after January 1,
2023, employees may deduct the amount of employer-provided “student loan payment assistance” received during the taxable year that has
not already been excluded from their gross income under IRC § 127. Employer-provided “student loan payment assistance” is an employer’s
payment of an employee’s principal or interest
on a qualified education loan, as defined in IRC
§ 221. Up to $5,250 of these employer payments
made in a calendar year beginning before January 1, 2026 are excluded from federal and, therefore, Massachusetts gross income. See TIR 23-5
for more information. As a result, if an employer
made payments on an employee’s principal or interest on a qualified education loan during the taxable year, the employee may deduct the amount
of such “student loan payment assistance” that
exceeds $5,250. Employees may not claim any
other deduction, such as for student loan interest, for employer-provided “student loan payment
assistance.”

Wind Power Incentive Jobs Credit

For tax years beginning on or after January 1,
2023, and until tax years ending on or before

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December 31, 2032, a business subject to tax
under MGL ch 62 may, to the extent authorized
by the offshore wind tax incentive program established in MGL ch 23J, § 8A(d), be allowed a
refundable credit in an amount determined by the
Massachusetts Clean Energy Technology Center,
in consultation with the Department of Revenue.
A business taking this credit must commit to the
creation of a minimum of 50 net new permanent full-time employees in Massachusetts. See
TIR 23-6 and MGL ch 62, § 6(bb) for additional
information.

Wind Power Incentive Investment Credit

For tax years beginning on or after January 1,
2023, and until tax years ending on or before December 31, 2032, a business subject to tax under
MGL ch 62 may, to the extent authorized by the
offshore wind tax incentive program established
in MGL ch 23J, § 8A(d), be allowed a refundable
credit in an amount, as determined by the Massachusetts Clean Energy Technology Center, of up
to 50 percent of its total capital investment in an
offshore wind facility. See TIR 23-6 and MGL ch
62, § 6(cc) for additional information.

National Guard Hiring Tax Credit

For tax years beginning on or after January 1,
2023, a business subject to tax under MGL ch 62
that employs not more than 100 employees may
be allowed a credit equal to $2,000 for each member of the Massachusetts National Guard hired by
the business after July 1, 2022. See TIR 23-6 and
MGL ch 62, § 6(aa)for additional information.

Disability Hire Tax Credit

For tax years beginning on or after January 1,
2023, businesses subject to tax under MGL ch
62 that hire employees after July 1, 2021 with a
disability who live and work in Massachusetts
may be eligible for a credit. The credit is equal
to the lesser of $5,000 or 30% of the wages paid
to a qualified employee in the first year of employment, and the lesser of $2,000 or 30% of
the wages paid to a qualified employee in each
subsequent year of employment. For additional
information, see 830 CMR 63.38JJ.1: Disability
Employment Tax Credit.

Child and Family Tax Credit

Starting with tax years beginning on or after January 1, 2023, individuals subject to tax under MGL
ch 62 may claim a refundable, non-transferable
child and family tax credit (“CFTC”) if they maintain a household as provided under IRC § 21. The
household must include an individual who is (1)
under the age of 13 and who qualifies for exemption as a dependent under IRC § 151; (2) a qualifying individual pursuant to IRC § 21, which includes a dependent, as defined in IRC § 152, or

the taxpayer’s spouse, who is physically or mentally incapable of taking care of himself or herself
and principally lives with the taxpayer; or (3) a
dependent under IRC § 152 who is age 65 or over
or disabled. For the tax year beginning on or after
January 1, 2023, the amount of the CFTC is equal
to $310 for each such individual. The CFTC will
be increased to $440 for each such individual beginning with tax years beginning on or after January 1, 2024.
The CFTC replaces the Dependent Care Tax Credit
and the Household Dependent Tax Credit, which
were repealed for tax years beginning on or after
January 1, 2023.

Increase in the Massachusetts Earned
Income Tax Credit

Effective for tax years beginning on or after January 1, 2023, the amount of the Massachusetts
earned income tax credit an individual may claim
is 40% of the computed federal credit. The credit
cannot be claimed by married taxpayers that
file separate Massachusetts personal income
tax returns. With respect to a taxpayer who is a
non-resident for part of the taxable year, the credit
must be multiplied by a fraction, the numerator
of which is the number of days in the taxable
year the taxpayer resided in the Commonwealth
and the denominator of which is the total number of days in the taxable year. A taxpayer who is
a non-resident for the entire taxable year cannot
claim the credit.

Increase to the Lead Paint Tax Credit

Effective for tax years beginning on or after January 1, 2023, the maximum amount of the Lead
Paint Tax Credit has been increased from $1,500
for each residential unit in which lead paint was
deleaded to $3,000. In addition, the maximum
amount of the credit for residential units in which
lead paint was partially covered or removed has
been increased from $500 to $1,000.

Increase to the Septic Credit

Effective for tax years beginning on or after January 1, 2023, the maximum amount of the Septic Credit taxpayers may claim per taxable year
has been increased from $1,500 to $4,000. Excess amounts may be claimed in the subsequent
five tax years. The maximum total credit amount
that can be claimed with respect to a particular
project is increased from $6,000 to $18,000. In
addition, the percentage of allowable septic system expenditures used to calculate the credit increased from 40% to 60%. If you claimed a Septic
Credit before January 1, 2023, and will claim excess amounts in the 2023 and later tax years, the
amount of the credit continues to be governed by
the prior limitations: the maximum annual credit

2023 Form 1-NR/PY Instructions	

amount is $1,500; the maximum total credit
amount is $6,000; and the percentage of allowable septic system expenditures used to calculate
the credit is 40%.

Extension of Brownfields Tax Credit

The brownfields tax credit, previously scheduled
to expire on August 5, 2023, has been extended
for five additional years. To qualify for a brownfields tax credit, a taxpayer must commence the
environmental response action on or before August 5, 2028, and incur net response and removal
costs before January 1, 2029. See TIR 23-12 for
more information.

Conformity to the Internal Revenue Code
(IRC)

As a general rule, Massachusetts does not conform to any personal income tax law changes to
the IRC made after January 1, 2022. See TIR 23-5
for more information. However, certain specific
Massachusetts personal income tax provisions,
as set forth in MGL ch 62, § 1(c), automatically
conform to the IRC currently in effect. The provisions of the IRC that Massachusetts 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, the 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
processing and keeping track of returns and in de-

5

termining and collecting the proper amount of tax
due. Under MGL ch 62C, § 40, the taxpayer’s identifying 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.

◗	 Any trade, business, or employment carried on
in Massachusetts (see the following section);

Filing Your
Massachusetts
Return

◗	 All wages, salaries, tips, bonuses, fees and
other compensation which relate to activities carried on in Massachusetts, regardless of where or
when the compensation is paid;

As a nonresident, you must file Form 1-NR/PY if
your Massachusetts source income for 2023 exceeded the smaller of your apportioned personal
exemption, or $8,000.

Am I a Resident, Nonresident, or
Part‑Year Resident?

There are four different categories of resident status 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 resident of Massachusetts but earned Massachusetts
income (e.g., from a job in Massachusetts). You
must report such income by filing a Massachusetts 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 certain income, deductions and exemptions based on
the number of days you were a resident or on the
amount of your income that is subject to Massachusetts tax. Part-year residents must file a Massachusetts Form 1-NR/PY.
◗	 You are both a nonresident and part-year resident 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.

What Is Massachusetts Source Income for
Nonresidents?

The term “Massachusetts source income” is used
throughout this booklet to describe the types of
income which are taxable to a nonresident.
A nonresident is only subject to tax on items of in­
come derived from or effectively connected with:

◗	 Participation in any lottery or wagering transaction in Massachusetts; or
◗	 Ownership of any interest in real or tangible
per­sonal property located in Massachusetts.
Some examples of the types of income taxable to
a nonresident:

◗	 Unemployment compensation related to previous Massachusetts employment;
◗	 Profit from a business, trade, profession, partnership, or S corporation conducted in Massachusetts;
◗	 Rents and royalties from real and tangible personal property located in Massachusetts or from
other business activities in Massachusetts;
◗	 Gain from the sale of real or tangible personal
property located in Massachusetts;
◗	 Interest and dividends, only if derived from or
connected with Massachusetts business activity,
or the ownership of Massachusetts real estate or
tangible personal property; and
◗	 The definition of Massachusetts source income
now includes gain from the sale of a business or
an interest in a busi­ness, separation, sick or vacation pay, deferred compen­sation, income from
covenants not to compete, and nonqualified pension income that federal law allows states to tax.
Income from Massachusetts sources which is not
taxed to residents is not taxed to nonresidents,
e.g., interest on debt obligations of the U.S. and
amounts received as Social Security and certain
worker’s compensation.
In general, the same exemptions and deductions
allowed to residents are available to nonresidents
to determine taxable income. These items are allowed, however, only to the extent they relate to,
or are allocable to, Massachusetts source income.

Am I Carrying on a Trade, Business or
Employment in Massachusetts as a
Nonresident?

A nonresident generally does not have a trade,
business or employment carried on in Massachusetts if his/her presence for business in Massachusetts is casual, isolated and inconsequential.
A nonresident’s presence for business will be
considered casual, isolated and inconsequential
if the nonresident’s business presence in Massachusetts is an­cillary to the nonresident’s primary
busi­ness or employment duties performed at a
base of operations outside Massachusetts — for

2023 Form 1-NR/PY Instructions	

example, an occasional presence in Massachusetts for management functions, and other similar
activities which are secondary to the individual’s
primary out-of-state duties.

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 guidelines)
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 Massachusetts. The
terms “residence” and “domicile” are used to denote that place where you have your permanent
home and to which, whenever you are absent, you
have the intention of returning. Nonresident military personnel stationed in Massachusetts 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 Residency Relief Act (P.L. 111- 97) prohibits a servicemember’s spouse from either losing or acquiring
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 servicemember
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 Education Improvement Act (P.L. 117–333) allows a
servicemember and the spouse of such servicemember 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 following: (a) the residence or domicile of the servicemember; (b) the residence or domicile of the
spouse; or (c) the permanent duty station of the
servicemember.
Note: Massachusetts excludes from gross income compensation earned by members of the
armed forces for service in a combat zone, to the
same extent it is excluded under federal law.

6

regard as your true home or principal residence.
You cannot choose to make your home in one
place for the general purposes of life and in another for tax pur­poses. Your residence is usually
the place where you maintain your most important family, social, economic, political and religious
ties. A change of residence will not be accomplished by a temporary or protracted absence
from a place; you must not intend to return.
Note: A person is also considered a resident if
they maintain a permanent place of abode in
Massachu­setts and spend more than 183 days,
in the aggre­gate, in the state. See TIR 95-7 for a
further explanation.

◗	 Amounts received as U.S. Social Security, public welfare assistance, Veterans Administration
disability payments, G.I. Bill education payments,
certain worker’s compensation, gifts, accident or
life insurance payments, or certain payments received 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).

What Adjustments Must I Make as a
Part‑Year Resident?

Gross income for a part-year resident includes:

Part-year residents must adjust income, deductions and exemptions when completing Form
1-NR/PY. In general, these items are reduced because all of your income may not be subject to
Massachusetts tax. Your deductions and exemptions are based on the number of days you were a
Massachusetts resident or the amount of income
that is subject to Massachusetts tax.

◗	 All wages, salaries, tips, bonuses, fees and
other compensation;

Income

What is Gross Income for a Part‑Year
Resident?

As a part-year resident, you must file Form 1-NR/
PY if your gross income was more than $8,000 —
whether received from sources inside or outside
of Massachusetts.

◗	 Taxable pensions and annuities;
◗	 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 following which are not subject to the U.S.
income tax:

No guidance is intended on the tax treatment of
such pay under the laws of other states. Generally, when income is taxable in two jurisdictions,
a credit for taxes paid to the other jurisdiction is
allowed on the taxpayer’s return in the state of his/
her residence.

◗	 Interest from obligations of states and their political subdivisions, other than Massachusetts and
its political subdivisions; and

How Do I Determine My Residence
(Domicile)?

◗	 Interest on obligations of the U.S. and U.S.
­territories;

Your residence is determined by all the facts and
circumstances in your case. If you have two or
more residences, your residence is the one you

of the U.S. government or the Commonwealth of
Massachusetts and its political subdivisions.

◗	 Income earned by a resident from foreign
­employment.
Massachusetts gross income does not include:

◗	 Pension income received from a contributory
annuity, p­ ension, endowment or retirement fund

Lines 5 through 11, 24, 27 and
Schedule D, Line 21

If you earned only a portion of the income you
reported on your U.S. return while you were a
Mass­achusetts resident, subtract from your U.S.
income the amount earned and received while you
were domiciled in another state or country. However, you may be required to include all income
derived from Massachusetts sources earned
while you were a nonresident, such as from rental
property or from a trade or business, including
employment, on Schedule R/NR, Resident/Nonresident Worksheet. Such income now includes
gains from the sale of a business or an interest in
a business, separation, sick or vacation pay, deferred compensation, income from cove­nants not
to compete, and nonqualified pension income that
federal law allows states to tax.

Deductions
Lines 15 through 19

Most deductions are based on the actual amounts
paid by you associated with the deduction for the
period of time you were in Massachusetts.
The deductions listed below are based on the proration of the number of days you were a Massachusetts resident. See line 3 on Form 1-NR/PY for
the proration formula.
◗	 Schedule Y, line 6, Archer medical savings account (MSA) deduction;
◗	 Schedule Y, line 8, health savings account
deduction;

2023 Form 1-NR/PY Instructions	

◗ Schedule Y, line 9c, charitable contribution
deduction;
◗	 Schedule Y, line 10, student loan interest
deduction;
◗	 Schedule Y, line 12, undergraduate student loan
interest deduction;
◗	 Schedule Y, line 15, commuter deduction; and
◗	 Schedule Y, line 18, prepaid tuition or college
savings program deduction and student loan repayment assistance deduction.
The deductions listed below are based on the actual amounts paid or received for the period of
time you were in Massachusetts. For example,
you may only deduct alimony (to the extent allowable as a deduction) paid while you were a
Massachusetts resident. (See Schedule Y, line 3).
Similarly, the deduction for attorney’s fees and
court costs involving certain unlawful discrimination suits (Schedule Y, line 9) must be directly
related to Massachusetts income as reported on
Form 1-NR/PY, line 12.
◗	 Schedule Y, lines 2 through 4;
◗	 Schedule Y, line 5, moving expenses;
◗	 Schedule Y, line 7, self-­employed health insurance deduction;
◗	 Schedule Y, line 9, Other Qualified Deductions;
◗	 Schedule Y, line 13, deductible amount of qualified contributory pension income from another
state or political subdivision;
◗	 Schedule Y, line 14, claim of right deduction; and
◗	 Schedule Y, line 17, certain gambling losses.

Exemptions
Lines 4a through 4f

Your total exemptions (line 4g) must be prorated
based upon the ratio of days you were a Massachusetts resident. To adjust your exemptions, use
the formula in line 3 and see line 22 instructions.

Health Care Penalty
Line 39

If you are a part-year resident subject to the
Health Care Penalty for 2023 and are not appealing the application of the penalty, enter the penalty amount from line 8 of the Health Care Penalty
Worksheet in line 39a for you and/or line 39b for
your spouse. Enter the total of lines 39a and 39b
in line 39, but do not enter less than 0. Be sure
to enclose Schedule HC with your return. Failure
to do so will delay the processing of your return.
If married filing a joint return and both you and
your spouse are subject to the penalty, separate

7

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 part-year resident taxpayer who does not have
health insurance that meets the Massachusetts
standard of minimum creditable coverage may be
subject to a Massachusetts penalty.

Earned Income Credit
Line 47

Your earned income credit (line 47) must be prorated based upon the ratio of days you were a
Massachusetts resident. To adjust this credit, use
the formula in line 3 and see line 47 instructions.

Should I Make Estimated Tax Payments in
2024?

Every taxpayer (whether a resident or nonresident) who expects to pay more than $400 in Massachusetts income taxes on income which is not
covered by Massachusetts withholding must pay
Massachusetts estimated taxes. Estimated tax
payments can be made online by using DOR’s
Mass­TaxConnect application at mass.gov/dor. See
line 44 instructions for more information.

How Do I File a Decedent’s Return?

A final income tax return must be filed for a taxpayer who died during the taxable year. It must
be signed and filed by his/her executor, administrator or surviving spouse for the portion of the
year before the taxpayer’s death. Be sure to fill in
oval 1 if the tax­payer who was listed first on last
year’s income tax return 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 with the refund claimant’s name and Social 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
decedent 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 Massachusetts Form 2, Massachusetts Fiduciary Income Tax Return.
If the decedent’s return shows a refund due, and
if the Probate Court has not appointed a legal representative and none is contemplated, a Massachusetts Form M-1310, Statement of Claim­ant to
Refund Due on Behalf of Deceased Taxpayer, must
be enclosed with the return so the refund check
may be made payable to the proper person.

When to File Your
Return

Your 2023 Form 1-NR/PY is due on or before
April 17, 2024.

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.
Visit mass.gov/dor to file via the Web.
Form 1-NR/PY Extension Worksheet
1. Enter amount from Form
1-NR/PY, line 41.  .  .  .  .  .  .  .  .  .
2. Enter the total of Form 1-NR/PY,
lines 42 through 44 and 47
through 51 .  .  .  .  .  .  .  .  .  .  .  .  .  .
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 withholding, estimated tax payments or with your extension. Form M-4868 is available at mass.gov/
dor or by calling (617) 887-6367 or toll-free in
Massachusetts (800) 392-6089.

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
and if you receive permission from the Commissioner 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 complete and file Form 13, Notice of Designation of
Fiscal Year, available at mass.gov/dor or by calling (617) 887-6367 or toll-free in Massachusetts
(800) 392-6089.

2023 Form 1-NR/PY Instructions	

Fiscal Year Filers

Fiscal year filers should file using the tax form for
the calendar year within which the fiscal year begins or 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 liability 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 Mass­
TaxConnect 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
Mass­
TaxConnect application at mass.gov/dor
or by calling DOR at (617) 887-6367 or toll-free
in Massachusetts (800) 392-6089. Setting up a
small payment agreement will allow you to make
monthly payments within a set time period to satisfy 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 on
your return. Also, enter your Social Security num­
ber on pages 2 through 5 of Form 1-NR/PY and on
page 2 of Schedules B or 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 numbers in the order they
appear on your federal return. Also, be sure your
employer has listed the correct Social 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 separate
return, except as provided below. See line 1 instructions fro married filing a separate return.
To apply for an SSN, you must complete Form
SS-5. Form SS-5 is available online at socialsecurity.gov, from your local Social Security Administration (SSA) office, or by calling the SSA at (800)
772-1213. It usually takes about two weeks to receive an SSN. If you are a nonresident or resident

8

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.

Consent to Extend the Time to Act on an
Amended Return treated as Abatement
Application

Filing an Amended Return

Note: When filing an Amended return, the
Amended return oval must be filled in. For example, 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.

In certain instances, an amended return showing a reduction of tax may be treated by DOR as
an abatement application. Under such circumstances, by filing an amended return, you are giving your consent for the Commissioner of Revenue to act upon the abatement application after
six months from the date of filing. See TIR 1611. You may withdraw such consent at any time
by contacting the DOR in writing. If consent is
withdrawn, any requested reduction in tax will
be deemed denied either at the expiration of six
months from the date of filing or the date consent
is withdrawn, whichever is later.

Filing an Amended Return

Filing an Application for Abatement

Note: You must wait until you receive an ITIN or
SSN to file your Massachusetts return.

If you need to change a line item on your return, 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 return 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 information 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
amending 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
return or from a federal audit (for example, if the
amended Massachusetts return is reporting a
rental deduction not claimed on the original return) 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 Part­
nership 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.

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 online at mass.gov/masstaxconnect. If you cannot
file online, use Form ABT.
Visit mass.gov/dor/amend for additional information about filing an amended return, or filing an
application for abatement.

Form 1-NR/PY 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 middle in the designated fields for each type.
◗	 Line 4c – You must fill in the bubble for each
spouse over 65 and enter a “1” or “2” in the Total
box accordingly.
◗	 Line 5 – 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 18 – Enter the total qualified rent paid in
2023 in the box, then divide by 2.
◗	 Line 42 – You must submit all documents that
have Massachusetts withholding, including passthrough entity or K-1 withholding.
◗	 Lines 43 and 44 – Be sure to differentiate any
overpayment from 2022 as a credit carry forward
on line 43 and do not list it as 2023 estimated tax
payment on line 44.
◗	 Line 48 – Schedule CB must be completed and
submitted with your return.

2023 Form 1-NR/PY Instructions	

◗	 Line 53 – Excess Paid Family Leave withholding (PFML) is not the amount shown on your
Form W-2. You must use the worksheet for line
53 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
$509.44 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 submit Schedule HC showing the FEIN and 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 (part-year residents only)
You, and your spouse if filing jointly, may voluntarily contribute $1 each to the state Election Cam­
paign Fund. The purpose of the 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, Operation Noble Eagle or Operation Sinai Peninsula
and were discharged under honorable conditions
and were domiciled for six months in Massachusetts immediately prior to entry into the Armed
Forces. DOR will then forward the name and address 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.

9

cense, passport, etc.) showing your new name.
Failure to include this documentation could delay
processing of your return.

and virtual currencies, such as cryptocurrencies
and stablecoins.

Noncustodial Parent

Fill in the Nonresident oval if you were not a resident of Massachusetts and you received Massachusetts source income. See the section What
is Massachusetts Source Income for Nonresidents? for an explanation of Massachusetts
source income.

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, Taxpayer Disclosure Statement, if you are disclosing
any inconsistent filing positions. Schedule TDS is
available on our website at mass.gov/dor. The inconsistent filing position penalty (see TIR 06-5,
section IV) applies to taxpayers that take an inconsistent position in reporting income. These taxpayers 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 “inconsistent 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

Deceased Taxpayer

Be sure to fill in the appropriate oval if a taxpayer
died during the taxable year. For further information, refer to the section How Do I File a Decedent’s Return? in the instructions.

Fill in the oval and enclose Schedule FCI (Foreign Corporation Income) if you are required to
complete and file Schedule FCI with your return.
All taxpayers with foreign corporation income
(including Global Intangible Low-Taxed Income
(GILTI)) must complete Schedule FCI. Detailed instructions for completing Schedule FCI are available on DOR’s website. See Schedule FCI and
Instructions.

Under Age 18

Digital Assets

If you are under age 18 as of January 1, 2024, 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 li-

Fill in the oval if at any time during 2023 you
received (as a reward, award, or payment for
property 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)

Residency Status

Fill in the Part-year resident oval if you were a
resident of Massachusetts for less than the full
year and you did not receive Massachusetts
source income while a nonresident.
Fill in the Filing both as a nonresident and partyear resident oval if both categories apply to you
in the same tax year. See the section Who Must
File. You must also complete and enclose with
your return Schedule R/NR, Resident/Nonresident Worksheet.

Nonresident Composite Return for
Professional Athletic Team Members

Massachusetts allows professional athletic teams
to file a composite return and make esti­mated tax
payments as an agent on behalf of two or more
qualified electing nonresident team members. Eligible members of a composite return must meet
the following requirements:
◗	 Must be nonresidents for the entire taxable year;
◗	 Must elect to be included in the composite return by signing a statement;
◗	 Must agree to be subject to Massachusetts tax
jurisdiction; and
◗	 Must waive the right to claim deductions, exemptions and credits allowable under MGL ch
62, §§ 3, 5 and 6. Taxpayers filing a nonresident
composite return should enter 0 on Form 1-NR/
PY, lines 20 (total deductions), 22 (exemption
amount) and lines 33 to 35 (credits).
Each electing nonresident team member must
sign under penalties of perjury a statement affirmatively stating such team member’s qualifications and election to file a composite return.
The composite return is filed on Massachusetts
Form 1-NR/PY along with the applicable schedules and attachments. The total Massachusetts
gross income reported on the composite Form
1-NR/PY must be the sum of all the qualified
electing nonresident members’ Massachusetts
source income.
Be sure to fill in the Nonresident composite return oval if this category applies to you.
Note: Lines without specific instructions are considered to be self-explanatory.

2023 Form 1-NR/PY Instructions	

a. Total Federal Income

Enter your total federal income (from U.S. Form
1040, line 9). If married filing separately and living
in the same household, each spouse must combine their income figures from their separate U.S.
returns when completing this section. If you did
not have a requirement to file a U.S. return, 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 or U.S. Form 1040-NR,
line 11). If married filing separately and living in
the same household, each spouse must combine
their income figures from their separate U.S. returns when completing this section. If you did not
have a requirement to file a U.S. return, you must
enter 0 in this section.
Note: Failure to enter this information will delay
the processing of your return.

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 and select only one.

Single

Fill in the Single oval if you were single as of December 31, 2023. 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 a widower whose spouse
died before 2023; or
◗	 You were legally separated under a final judgment of the probate court.
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, 2023,
and you elect to file a joint return. A joint return
is allowed even if only one spouse had income.
Both spouses are responsible for the accuracy of
all information entered on a joint return, and both
must sign. If your spouse died during 2023, you
may still choose to file a joint return.

10

Note: A joint Form 1-NR/PY is not allowed unless
each spouse is reporting income for the same resident or nonresident period. For example, John (a
Massachusetts resident) and Jane (a New Hampshire resident) both work in Massachusetts. After
they were married in June 2023, John moved to
New Hampshire to live with Jane. They cannot
file a joint return because their nonresident tax
years are different. (Jane lived in New Hampshire
during the entire year, but John only lived there
for six months.)

Married Filing Separate Return

Fill in the Married filing separate return oval
if you were le­gally married as of December 31,
2023, but you elect to file separately. 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 Identification 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 status checkboxes to indicate that your spouse is a
nonresident alien who does not have and is not required 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 unmarried 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 Schedule DI, Dependent Information. Certain married
people who lived apart from their spouse for the
last six months of 2023 and who meet all of the
other federal requirements may also be able to use
this status. See IRS Publication 501, Exemptions,
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 dependent exemptions on IRS Form 8332,
or participated in a decree or agreement to allow
the noncustodial parent to claim a dependency
exemption.

Lines 2 and 3. Part-Year Resident
Proration Formula

Part-year residents must fill out the proration formula in lines 2 and 3. Enter the dates you were a
Massachusetts resident in the spaces provided.
Then, enter the total days you were a Massachu-

setts resident and divide this number by 365 and
carry this division out to four decimal places. Failure to do so may delay the processing of your
return. This figure is used to determine the portion of certain de­ductions, exemptions, and the
earned income credit a part-year resident may be
eligible to claim.

Whole Dollar Method Required

DOR requires that the whole dollar method be used
for entries made on forms or schedules. For example, 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, calculations on worksheets used to reach amounts
shown on the return may be made in either of the
following 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 4. Exemptions
Line 4a. Personal Exemptions

Each taxpayer is entitled to claim a personal exemption. The amount of your personal exemption
depends on your filing status in line 1.
◗	 If you are single or married filing a separate return, enter $4,400 in line 4a.
◗	 If filing as head of household, enter $6,800
in line 4a.
◗	 If married filing a joint return, enter $8,800
in line 4a.

Line 4b. 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
dependents you listed on U.S. Form 1040 or U.S.
Form 1040NR. Do not include yourself or your
spouse. Then, multiply that total by $1,000 and
enter the total amount in line 4b. Be sure to fill out
Schedule DI, Dependent Information, if you are
claiming a dependent exemption(s). Failure to do
so will delay the processing of your return.

Line 4c. Age 65 or Over Before 2024
You are allowed an additional $700 exemption if
you were age 65 or over before January 1, 2024. If
your spouse was age 65 or over and you are filing
a joint return, you may also claim a $700 exemption 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 4c.

2023 Form 1-NR/PY Instructions	

Note: Only one person (or married couple filing
jointly) may claim the dependent exemption for
any one child or other dependent.

Line 4d. 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. Then,
multiply that total by $2,200 and enter the total
amount in line 4d.

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 peripheral field of vision has been contracted to a 10-degree radius or less, regardless of visual acuity.

Line 4e. Medical/Dental Expenses

You may claim an exemption for medical and dental expenses paid during 2023 only if you itemized
these expenses on your U.S. Form 1040, Schedule A. If you are married filing a joint U.S. Form
1040, you must file a joint Massachusetts Form
1-NR/PY to claim this exemption. Enter in line 4e
the amount reported on your U.S. Form 1040,
Sched­ule A, line 4.

Line 4f. Adoption Agency Fee

If you paid adoption fees to a licensed adoption
agency during 2023, you are eligible for an exemption of the total amount of the fees paid during the
year. Fees paid during 2023 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
2023 should also be included for this exemption.
Enter this amount in line 4f.

Lines 5 through 11

◗	 Income received by nonresidents is taxed only
when it is from Massachusetts sources. Refer to
the general instructions in this booklet for a definition of Massachusetts source income. The instructions for each of these lines will describe
Massachusetts source income in more detail. For
part-year residents, income received while a resident, whether from sources inside or outside of
Massachusetts, is taxable.
◗	 Your entries must agree with the appropriate
amounts on your copies of Forms W-2 and 1099,
and/or required schedules for lines 8 and 9. Nonresidents, if your actual Massachusetts source
income is not known, see the Nonresident Apportionment Work­sheet in line 13 and accompanying
instructions.

11

5.0% Income

If filing as both a nonresident and part-year resident, you must complete Schedule R/NR, Resident/Nonresident Worksheet, before proceeding.

Line 5. Wages, Salaries, Tips and Other
Employee Compensation

wage amount. This amount will be greater than
the U.S. amount because your pension contributions are excluded from your income for U.S.
tax purposes. Contributions up to $2,000 may be
deducted in line 15a or 15b for Massachusetts
tax purposes.

Line 6. Taxable Pensions and Annuities

Report in line 5 total state wages from Form(s)
W-2. Enter the amount(s) stated as Massachusetts wages.

Nonresidents. Under Title 4 of the USC § 114,
payments to nonresidents from certain qualified
pension plans are not subject to tax.

Note: Part-year residents, income earned while a
Massachusetts resident in another state is subject
to taxation in Massachusetts.

Qualified plans include:

In most cases your total wages will be the same
amount reported on your U.S. 1040, line 1z or
U.S. 1040-NR, line 1z unless:

◗	 Simplified IRC § 408(k) plans;

◗	 You or your spouse earned income from employment outside Massachusetts (nonresidents
only);

◗	 A qualified trust under IRC § 401(a) exempt
from taxation under IRC § 501(a);
◗	 IRC § 403(a) annuity plans;
◗	 IRC § 403(b) annuity contracts;
◗	 IRC § 7701(a) (37) individual retirement plans;

◗	 You were a Massachusetts resident working in
a foreign country (part-year residents only);

◗	 Eligible deferred compensation plans of state
and local governments and tax exempt organizations as defined by IRC 457;

◗	 You were a resident of Massachusetts for only
a part of 2023; or

◗	 IRC § 414(d) government plans; a trust or
trusts described in IRC § 501(c) (18); and

◗	 You were a state or local employee and made
contributions to a Massachusetts state or local
pension plan.

◗	 Any plan, program or arrangement described
in IRC § 3121(v)(2)(C) or any plan, program, or
arrangement that is in writing, that provides for
retirement payments in recognition of prior service to be made to a retired partner, and that is
in effect immediately before retirement begins if
payments are made at least annually and spread
over the actuarial life expectancy of the beneficiaries, or if payments are spread over at least a ten
year period.

Differences Between Wages for Mass­
achu­setts Tax Purposes and Those
Reported on Your U.S. Return

Nonresidents earning a portion of income from
employment outside Massachusetts. If a portion
of the wage income reported on your U.S. return
was earned outside Massachusetts, the amount in
line 5 should not include wages earned in another
state or country.
Massachusetts residents working in a foreign
country while a Massachusetts resident. Income earned in a foreign country is subject to
taxation in Massachusetts. If you excluded part or
all of the compensation earned in a foreign country on your U.S. return (under § 911 of the IRC),
you must include any such amount in line 5 for
Massachusetts tax purposes.
Part-year residents of Massachusetts. If you
earned only a portion of the income you reported
on your U.S. return while you were a Massachusetts resident, subtract from your U.S. wages the
amount earned and received while you were domiciled in another state or country.
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 5 the Form W-2 state

Such income is also protected from state taxation
if the plans are trusts under IRC § 401(a), but exceed limits laid down in IRC §§ 401(k), 401(m),
402(g), 403(b), 408(k) or 415 or any other limitation on contributions or benefits which may apply
in the Code.
Retirement or retainer pay of a member or former
member of a uniformed service computed under
10 USC ch 71 (military pensions) received by a
nonresident is also exempt.
Any income from pensions related to a Massachu­
setts trade, business or employment that is not
derived from one of the qualified pension plans
listed above is taxable. Enter in line 6 the portion
of those pensions reported on your U.S. Form
1040, line 5a, that are taxable to Massachusetts
nonresidents.
Part-year residents. Income from most private
pensions or annuity plans is taxable in Massachu­
setts. You must report the taxable pension income

2023 Form 1-NR/PY Instructions	

you received while a resident of Massachusetts.
Certain government pensions, however, are exempt under Massachusetts law. In general, exempt pensions include contributory pensions
from the U.S. government or the Commonwealth
of Massac