Instructions For Form 1 - Massachusetts Resident Income Tax

2006 Form 1 — Line by Line Instructions

Line 29. Other Credits

d. Massachusetts United States Olympic Fund:

… continued from previous page

Contributions to this fund are used to assist Mass-

(from Schedule Z)

6. Enter the amount from Schedule D, line 18. **

achusetts residents in paying all or part of any costs

Enter the total from Schedule Z, line 15. Be sure to

Not less than “0” . . . . . . . . . . . . . . .

associated with the development, maintenance and

enclose Schedule Z with your return. Failure to do

7. Add lines 3 through 6 . . . . . . . . .

operation of the United States Olympic Team par-

so will delay the processing of your return.

If you are single and the total in line 7 is $8,000

ticipating in the Olympics and the United States

or less, you qualify for No Tax Status (see line

Paralympic Team participating in the Paralympics.

Line 32. Voluntary Contributions

26 instructions). If you are single but do not

You may contribute any amount you choose to the

e. Massachusetts Military Family Relief Fund:

qualify for No Tax Status, and your total in line 7

following funds. Remember, these amounts are

The Massachusetts Military Family Relief Fund Is

is $14,000 or less, complete line 27 and see line

added to your tax. They increase the amount of

administered by the Friends of Massachusetts Na-

28 instructions for the Limited Income Credit.

your payment or reduce the amount of your refund.

tional Guard and Reserve Families. Contributions

If you are filing as head of household or married

to this fund are used to help members of the Mass-

filing a joint return, compare line 7 with the No

a. Endangered Wildlife Conservation: The Natural

achusetts National Guard and Massachusetts res-

Tax Status/Limited Income Credit chart to see if

Heritage and Endangered Species Fund is admin-

you may qualify for No Tax Status or the Limited

idents who are members of the reserves of the

istered by the Division of Fisheries and Wildlife.

Income Credit .

armed forces of the United States and who have

Contributions are used to protect and restore rare

been called to active duty after the September 11,

* Add back any Abandoned Building Renovation

and endangered wildlife and plants, and their habi-

2001 terrorist attacks, and their families, to defray

deduction claimed on Schedule(s) C and/or E

tats. This fund has helped restore and conserve in

the costs of food, housing, utilities, medical serv-

before entering an amount in line 1.

the Commonwealth populations of the Bald Eagle,

ices, and other expenses.

Hessel’s Hairstreak Butterfly, the Redbelly Turtle

** If filing Schedule D-IS, Installment Sales, see

and the Plymouth Gentian.

Add items a, b, c, d and e and enter the total in

the Schedule D-IS instructions for the amount

line 32.

to enter in line 6. Schedule D-IS and instruc-

b. Organ Transplant Fund: The Organ Transplant

tions are available on DOR’s website at www.

Fund is administered by the Massachusetts De-

Line 33. Massachusetts Use Tax

mass.gov/dor.

partment of Public Health. All contributions re-

Due On Out-of-State Purchases

ceived by the Fund assist patients with the costs

Line 26. No Tax Status

Made in 2006

of medications without which they might lose

If you qualify for No Tax Status, fill in the oval in

their transplanted organs.

A 5% Massachusetts use tax is due on your tax-

line 26, enter “0” in line 27 and omit lines 28

able purchases of tangible personal property pur-

c. Massachusetts AIDS Fund: The Massachusetts

through 30. Also, enter “0” in line 31 and complete

chased for use in Massachusetts on which you

AIDS Fund is administered by the Massachusetts

Form 1. However, if there is an amount entered in

did not pay Massachusetts sales or use tax.

Department of Public Health. Contributions are

line 25, Credit Recapture Amount, enter that

These include, but are not limited to, purchases

used for research, experimental treatment and ed-

amount in line 27 and complete lines 29 and 30.

made out-of-state, on the Internet or from a cata-

ucation related to Acquired Immune Deficiency

log, where no Massachusetts sales tax was paid.

Note: If married filing separately, you do not qual-

Syndrome (AIDS). Massachusetts residents living

The use tax does not apply to out-of-state pur-

ify for No Tax Status.

with AIDS receive experimental treatment through

chases that are exempt from the sales tax (for ex-

clinical trials which are wholly supported with this

Line 27. Total Tax

ample, clothing that costs $175 or less). Examples

Fund. The Fund also educates people with AIDS

of taxable items include automobiles, computers,

Add line 22 (5.3% tax), line 23 (12% tax), line 24

about treatment options and how to gain access

furniture, jewelry, cameras, appliances, and any

(tax on long-term capital gains) and line 25 (credit

to medication and experimental treatment.

recapture amount). Enter the total in line 27.

Line 28. Limited Income Credit

No Tax Status/Limited Income Credit Chart

Filing status:

Line 28 Worksheet — Limited Income Credit

Number of dependents

Head of household. Line 7 of

Married filing a joint return.

(Only if Single, Head of Household, or Married

( from Form 1, line 2b):

the AGI worksheet is less than

Line 7 of the AGI worksheet

Filing Jointly)

or equal to:

is less than or equal to:

1. Enter amount from line 7 of Massachusetts

$13,550

$23,713

$15,300

$26,775

AGI Worksheet . . . . . . . . . . . . . . . .

$14,550

$25,463

$16,300

$28,525

2. Enter $8,000 if single. If married filing a joint

$15,550

$27,213

$17,300

$30,275

return or head of household, enter the amount

$16,550

$28,963

$18,300

$32,025

from the blue column of the No Tax Status/

$17,550

$30,713

$19,300

$33,775

Limited Income Credit chart . . . . . .

$18,550

$32,463

$20,300

$35,525

3. Subtract line 2 from line 1 . . . . . .

$19,550

$34,213

$21,300

$37,275

4. Enter in line 4 the amount of tax from Form 1,

you qualify for

you may qualify

you qualify for

you may qualify

line 27 . . . . . . . . . . . . . . . . . . . . . . .

No Tax Status

for the Limited

No Tax Status

for the Limited

5. Multiply line 3 by 10% (.10) . . . .

Income Credit

6. If line 4 is smaller than line 5, you are not

If the number of dependents is more than 6, add $1,000 per dependent to the blue column for No Tax

eligible for this credit. Enter “0.” If line 4 is

Status, or $1,750 per dependent to the red column for the Limited Income Credit.

larger than line 5, subtract line 5 from line 4

and enter the result here and in line 28 on

If you qualify for No Tax Status, see the instructions for line 26. If you may qualify for the Limited Income

Form 1 . . . . . . . . . . . . . . . . . . . . . . .

Credit, go to line 27 and complete the worksheet for line 28.

Instructions For Form 1 - Massachusetts Resident Income Tax - 2006 Page 14

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