Instructions For Form 1 - Massachusetts Resident Income Tax

2006 Form 1 — Line by Line Instructions

Line 39. Senior Circuit Breaker Credit

If you owe any interest, penalty or addition for the

underpayment of estimated tax, add those

Certain senior citizens in Massachusetts may be

amounts to the tax you owe and enter the total

You may elect to have your refund deposited di-

eligible to claim a refundable credit on their state

rectly into your savings or checking account.

amount in line 45.

income taxes for the real estate taxes paid on the

Check with your financial institution to make sure

Massachusetts residential property they own or

What Are Interest and Penalties?

that it accepts direct deposit and verify the routing

rent and which they occupy as their principal resi-

Interest: If you fail to pay the tax when due, inter-

transit number (RTN) of the issuing financial insti-

dence. The maximum credit allowed is $870 for the

est will be charged. For an explanation of how in-

tution. If we are unable to honor your request for

tax year beginning January 1, 2006. If the credit

terest is compounded in Massachusetts, see TIR

a direct deposit, a paper check will be sent to you.

due the taxpayer exceeds the amount of the total

92-6 or call the Customer Service Bureau at (617)

income tax payable for the year by the taxpayer,

887-MDOR or toll-free, in Massachusetts at

the excess amount of the credit will be refunded to

1-800-392-6089.

the taxpayer without interest. To determine if you

Penalty for Late Payment: The penalty for late

qualify for this credit, refer to the Senior Circuit

payment is

⁄

% per month (or fraction thereof) of

Breaker Credit instructions in this booklet.

the tax due, up to a maximum of 25%.

If you qualify for this credit and you are a home-

Penalty for Failure to File: The penalty for failure

owner, enter the amount from Schedule CB, Cir-

to file a tax return by the due date is 1% per month

cuit Breaker Credit, line 20; if you are a renter, enter

The routing number of your financial institution

(or fraction thereof) of the tax due, up to a maxi-

the amount from line 24. Be sure to complete and

is nine digits and begins with 01 through 12 or 21

mum of 25%. If you were required to file a tax re-

enclose Schedule CB with your return.

through 32. The account number can be up to 17

turn for income received in any prior year and you

characters (both numbers and letters). Omit hy-

Line 40. Payments Made with

did not file, you must file for that prior year.

phens, spaces and special symbols. Enter the

Extension

Penalty for Protested (“Bad”) Check: If your

number from left to right and leave any unused

If you filed Massachusetts Form M-4868, Applica-

check is not honored by your bank because of in-

boxes blank. You must enter the routing number

tion for Automatic Six-Month Extension of Time to

sufficient funds or any other reason, a penalty may

and the account number in the spaces provided in

File Massachusetts Income Tax Return, for 2006 on

be added equal to 2% of the amount of the check

line 44 if you are requesting direct deposit. Failure

or before April 17, 2007, enter in line 40 the amount

or $10, whichever is greater (but no more than

to do so will result in your request for direct de-

you paid with Massachusetts Form M-4868.

the amount of the check).

posit being denied. See sample check for location

Addition for Underpayment of Estimated Tax: You

of this information.

Refund Amount

will generally be subject to this addition to tax if

Note: Only one direct deposit is allowed per ac-

you did not have withholding and/or estimated

count number.

payments equal to 80% of the total tax liability re-

Line 42. Overpayment

quired to be paid and your 2006 tax due after cred-

If line 34 is smaller than line 41, subtract line 34

Tax Due

its and withholding is greater than $400. The 80%

from line 41 and enter the result in line 42. This is

requirement is reduced to 66

% for individuals

⁄

the amount of your overpayment. If line 34 is larger

who receive two-thirds of their income from fish-

Line 45. Tax Due

than line 41, go to line 45. If line 34 and line 41

ing or farming. If you failed to meet these require-

If line 34 is larger than line 41, subtract line 41

are equal, enter “0” in line 44.

ments, you must complete and enclose Massachu-

from line 34, and enter the result in line 45. This

Line 43. Amount of Overpayment

setts Form M-2210 to calculate the amount you

is the amount of tax you owe with your return.

must add to line 45. You do not have to complete

You Want Applied to Your 2007

Pay in full with your return. Go to Web Services

Form M-2210 if the balance due with your return

for Income at for online pay-

Massachusetts Estimated Tax

is $400 or less.

ment options. If you need to mail your payment,

Enter the amount of your 2006 overpayment that

make your check or money order payable to the

You may not be subject to an underpayment penalty

you wish to apply to your 2007 Massachusetts

Commonwealth of Massachusetts and write your

if you qualify for one of the following exceptions:

estimated tax. Once an election is made to apply

◗ you are a qualified farmer or fisherman and are

Social Security number on the front of your check

your overpayment to your 2007 estimated tax, it

or money order in the lower left corner. Complete

paying the full amount of the tax due on or before

cannot be refunded later or applied to any addi-

and remove Form PV, Massachusetts Income Tax

March 1, 2007;

tional tax you may owe for 2006. The amount en-

◗ you were a Massachusetts resident and were

Payment Voucher, attached to the back of the en-

tered in this line can only be claimed as a credit on

velope included in this booklet. Enclose the check

not liable for 2005 taxes (where the taxable year

your 2007 Massachusetts return.

and Form PV with your return. Form PV must be

was 12 months); or

◗ the sum of your estimated payments and with-

included with your check to ensure proper credit-

Line 44. Refund Amount

ing of your account. Be sure to use the light blue

holding equals or exceeds your 2005 total tax due

Subtract line 43 from line 42. Enter the result in

mailing label when mailing your Form 1 with the

(where the taxable year was 12 months and a re-

line 44. This is the amount of your refund.

Form PV.

turn was filed).

Note: Your state tax refund may be taxable on your

Failure to file or failure to pay the proper amount of

If you qualify for one of these exceptions, please fill

U.S. tax return if you deducted state income tax

tax when due will result in an increasing amount

in the oval marked “EX” under line 45 on Form 1

paid as an itemized deduction on U.S. Schedule A.

of interest and penalties. It is to your advantage to

and enclose Form M-2210 indicating which of the

file when your return is due, whether or not you

exceptions applies to your circumstances.

are able to make full payment.

Instructions For Form 1 - Massachusetts Resident Income Tax - 2006 Page 16

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