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Massachusetts Free Printable  for 2024 Massachusetts Form 1-NR/PY Instructions

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Form 1-NR/PY Instructions
Form 1-NR Instructions

C BE A RT PL AT E P E TIT O V I E TE M ENSE ID AM SV B LI 1 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. 3 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 4 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
Extracted from PDF file 2023-massachusetts-form-1-nr-instructions.pdf, last modified January 2024

More about the Massachusetts Form 1-NR Instructions Individual Income Tax Nonresident TY 2023

Form 1-NR Instructions requires you to list multiple forms of income, such as wages, interest, or alimony .

We last updated the Form 1-NR/PY Instructions in January 2024, so this is the latest version of Form 1-NR Instructions, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form 1-NR Instructions directly from TaxFormFinder. You can print other Massachusetts tax forms here.

Related Massachusetts Individual Income Tax Forms:

TaxFormFinder has an additional 126 Massachusetts income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Massachusetts Form 1-NR Instructions.

Form Code Form Name
Form 1-NR/PY Nonresident or Part-Year Resident Income Tax Return

Download all MA tax forms View all 127 Massachusetts Income Tax Forms


Form Sources:

Massachusetts usually releases forms for the current tax year between January and April. We last updated Massachusetts Form 1-NR Instructions from the Department of Revenue in January 2024.

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Form 1-NR Instructions is a Massachusetts Individual Income Tax form. Many states have separate versions of their tax returns for nonresidents or part-year residents - that is, people who earn taxable income in that state live in a different state, or who live in the state for only a portion of the year. These nonresident returns allow taxpayers to specify which which income is subject to the state's taxes, and which is not.

About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of Massachusetts Form 1-NR Instructions

We have a total of six past-year versions of Form 1-NR Instructions in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:



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