Massachusetts Individual Income Tax Instructions

Individual Income Tax Instructions
Form 1 Instructions
Department of Revenue

Commonwealth of Massachusetts

Form 1 2023
Massachusetts

Resident Income Tax

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Before using paper, consider

Fast — Filing electronically, rather than on paper, can mean much

faster processing of your refund and money in your account sooner.

Accurate — Generally, there are fewer errors with electronic

filings than paper forms. Online programs make it easy to ensure
that 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
longer refund wait
times and calculation
­mistakes. E-file this year!
There are three easy and convenient ways to do it.

1
2
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File Electronically for Free
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 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 2023 tax year, previously filed a Massachusetts return, and the forms
you file 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, 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.

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.

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 Instructions 	

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 is due on or before April 17, 2024. April
15, 2024, when returns and payments would nor­
mally 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.

2023 Personal Income Tax Rates

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%.

4% Surtax on Taxable Income Over $1
Million

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.

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
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.

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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.
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.

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

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
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
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.

2023 Form 1 Instructions 	
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 be-

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ginning 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
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, 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 determining 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.

2023 Form 1 Instructions 	

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 Massachusetts — you are required to file a Massachusetts 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
income, you must file as a nonresident on the
Nonresident/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
Massachusetts 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 following, which are not subject to U.S. income tax:

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◗	 Interest from obligations of states and their political 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, 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).

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.

(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 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. 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 service-member’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.

◗	 You are a nonresident if you were not a resident of Massachusetts but received Massachusetts income (e.g., from a job in Massachusetts).
You must report such income by filing a Massachusetts Form 1-NR/PY.

What Are the Rules for Filing a Joint
Return?

◗	 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.

If your spouse died during 2023, you may still
choose to file a joint return.

◗	 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.

◗	 A credit of $310 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 mentally incapable of taking care of himself or herself;

Are Military Personnel Required to File?

◗	 No Tax Status if joint Massachusetts AGI was
$16,400 or less plus $1,000 for each dependent;

If you enlisted in the service as a Massachusetts
resident and have not established a new domicile

A joint Form 1 is not allowed unless both spouses
were Massachusetts residents for the same portion of 2023.

If you are legally married, you have the option of
filing either a joint return or a married filing separate return. Married taxpayers who file a joint
return are allowed to claim the following exemptions, deductions and credits which married taxpayers filing separate returns may not claim:

2023 Form 1 Instructions 	
◗	 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 payments exceeds 10% of their total
income, but not more than $2,590. 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 taxpayer who died during the taxable year. This return should include income received until date
of death. It must be signed and filed by his/her
personal representative, 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,
Statement of Claimant to Refund Due on Behalf
of Deceased Taxpayer, 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. 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 representative and none is contemplated, a Massachusetts Form M-1310 must be enclosed with the
return so the refund check may be made payable
to the proper person.

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Should I Make Estimated Tax Payments in
2024?

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 online 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.

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.

Fiscal Year Filers

When to File Your
Return

Your 2023 Massachusetts Form 1 is due on or before April 17, 2024. See "Filing Due Dates" above.

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.

Automatic Extensions

What If I am Unable to Pay?

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 withholding, 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

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
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 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(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

2023 Form 1 Instructions 	
your spouse’s number in the order they appear
on your federal return. Taxpayers filing their U.S.
return using an Individual Taxpayer Identification
number (ITIN) should enter that ITIN as their Social Security number in the appropriate space.
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 for 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
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 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.

7
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 Partnership Audit

If your amended return includes changes made
due to an IRS BBA Audit, fill in the Amended return 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 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.

◗	 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
2023 in the box, then divide by 2.
◗	 Line 38 – You must submit all documents that
have Massachusetts withholding, including passthrough entity or K-1 withholding.
◗	 Lines 39 and 40 – Be sure to differentiate any
overpayment from 2022 as a credit carry forward
on line 39 and do not list it as 2023 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
$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.

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.

Filing an Application for Abatement

◗	 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.

◗	Penalties

Voluntary Contribution to State Election
Campaign Fund

Federal Changes

Not entering the information below correctly may
result in an item being adjusted or removed.

Filing an Amended Return

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

File an Application for Abatement only to dispute
one of the following:
◗	 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 Frequent Errors

◗	 Name – Enter your name as shown on your
government-issued ID with the first, last and middle in the designated fields for each type.

You, and your spouse if filing jointly, may voluntarily contribute $1 each to the State Election
Campaign 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, 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

2023 Form 1 Instructions 	
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.

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?

Under Age 18

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 license, passport, etc.) showing your new name.
Failure to include this documentation could delay
processing 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, 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,
§ 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.

8
Schedule FCI. Foreign Corporation Income

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.

◗	 You were legally separated under a final judgment 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

Digital Assets

Fill in the Married filing joint return oval if you
were legally married as of December 31, 2023.
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
2023. For further information, refer to the section
“What Are the Rules for Filing a Joint Return?”

Note: Lines without specific instructions are considered to be self-explanatory.

Married Filing Separate Return

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) and virtual currencies, such as cryptocurrencies and stablecoins.

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). 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. Be sure to select only one filing status.

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 widower whose spouse
died before 2023; or

Fill in the Married filing separate return oval
if you were legally married as of December 31,
2023, 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 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, 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 dependent exemptions on U.S. Form 8332,
or participated in a decree or agreement to allow
the noncustodial parent to claim a dependency
exemption.

2023 Form 1 Instructions 	
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 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 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 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
dependents you listed on U.S. Form 1040. Do not
include 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
Information, if you are claiming a dependent exemption(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 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 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

9
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 peripheral field of vision has been contracted to a 10-degree radius or less, regardless of visual acuity.

Line 2e. 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 to claim this exemption. Enter in line 2e
the amount reported on your U.S. Form 1040,
Schedule A, line 4.

Line 2f. 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 2f.

5.0% Income

Note: DOR and the IRS maintain an extensive
exchange program, routinely sharing computer
tapes and audit results. Discrepancies between
income, deductions, and schedules reported federally 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 adjustment 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 Massachusetts. If you excluded part or all of the compensation earned in a foreign country on your
U.S. return (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.

Line 4. Taxable Pensions and Annuities

Income from most private pensions or annuity
plans is taxable in 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 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 generally enter in line 4 the taxable amount reported
on your U.S. Form 1040, line 5b. In some cases,
however, 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 Massachusetts until the total of
your taxed contributions is received. If your pension falls into this category, 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 income 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 political 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.

2023 Form 1 Instructions 	
◗	 Noncontributory pension income or survivorship 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 Atmospheric Administration) are exempt from taxation
in Massachusetts.
◗	 Massachusetts state court judges who were
appointed on or after January 2, 1975 are participants in the Massachusetts contributory retirement system and their pensions are nontaxable.
State court judges who were appointed prior to
January 2, 1975 receive taxable noncontributory 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.
Noncontributory pension income received after a
lump-sum distribution is fully taxable and should
be reported in line 4.

How do I report lump-sum distributions?

10
Line 5. Interest from Massachusetts
Banks

party software. The tax return may be generated
by the taxpayer or by a tax professional. The taxpayer is encouraged, but not required, to submit
the return electronically. Paper forms produced
using the third-party software product will contain 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 preparer must follow the Commissioner’s electronic
filing rules. See TIRs 08-22 and 16-9 for more
information.

Note: This exemption amount does not apply to
your U.S. tax return.

If you do not have access to a software package
when filing your 2023 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
2023 Schedule(s) E, E-1, E-2, E-3 (and instructions) to file with your income tax return.

Enter in line 5a 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. Then, enter your
exemption amount in line 5b (if married filing
jointly, enter $200; otherwise, enter $100). Subtract line 5b from 5a and enter the result in line 5,
but not less than 0.

Do not subtract interest forfeited or penalties
charged to you for early savings withdrawal.
You will be allowed 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.

If you were an employee of the U.S., Massachusetts 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.

Line 6a. Business/Profession Income or
Loss

Lump-sum distributions of qualified employee
benefit plans in excess of the employee’s contributions which were previously subject to Massachusetts tax (or not previously excluded from
Massachusetts tax) must be reported in line 4.
Generally, qualified rollovers are not taxable in
Massachusetts 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).”

Note: Following the Code Update, you may not
deduct an excess business loss (EBL) for tax year
2023. For federal purposes, your EBL, if any, is determined 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 Massachusetts income. To do so, use Massachusetts
Schedule X, line 6. See instructions for that line
for more information.

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 taxable portion of these rollovers included in
federal gross income is also included in Massachusetts gross income, except for amounts previously subject to Massachusetts personal income
tax. See Schedule X, line 2 instructions for further details.

Enter in line 6a the amount of income or loss
from a business or profession from Massachusetts Schedule C, line 37. You must enclose Massachusetts Schedule C with this return.

Line 6b. Farm Income or Loss

If you operate a farm as an individual or cooperative, 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 differences, 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-

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 withholding of Massachusetts state income taxes on
your unemployment compensation, be sure to include 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 all winnings from the Massachusetts state lottery. Do not enter less than 0. You
may only deduct the price of your winning ticket.
Lottery 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.

2023 Form 1 Instructions 	

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 specified 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 2023, 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 Security (FICA), Medicare or Railroad Retirement and
the U.S. or Massachusetts retirement systems
during 2023 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 Medicare 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 Security 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 deductible for Massachusetts income tax purposes.

Line 14. Rental Deduction

11
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 residence 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 residence 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 cooperative 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, furnishings 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 applied 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 separately 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 deductions do not exceed $4,000. If the allocation
results in one spouse claiming a deduction in excess of $2,000, that spouse must enclose with his/
her return a statement signed by the other spouse
indicating consent to the allocation. The statement
must contain the name, address and Social Security number of the consenting spouse and the
amount of rental deduction taken by that spouse.

You may be entitled to a rental deduction equal to
one-half (50%) of the rent you paid during 2023
(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
2023 in line 14a. Divide line 14a by 2 and enter
the result, or $4,000 ($2,000 if married filing a
separate return), whichever is smaller, in line 14.

Line 15. Other Deductions (from Schedule Y)

Note: This deduction amount does not apply to
your U.S. tax return.

Line 19. 5.0% Income After Exemptions

What Qualifies for the Rental Deduction?

The deduction must be for rent you paid to a landlord for the rental or lease of your principal residence 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

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.
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 interest
income (other than interest from Massachusetts
banks), dividends or capital gain income, complete the Schedule B, Line 36 and Schedule D,
Line 20 Worksheet, if applicable. All others proceed 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 deductions in Form 1, line 17, the excess may be applied
against any interest and dividend income and income 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 excess 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
Schedule B, line 36. If line 4 is equal to