Instructions For Form 1 - Massachusetts Resident Income Tax

2006 Form 1 — Schedule Instructions

tributions. See TIR 98-8, Massachusetts 1998 Re-

sation received as executor or administrator of an

person who solicits business for an employer away

ducing Income Taxes Act , for further details.

estate, and commission income or tips not reported

from the employer’s place of business.

in line 3 of Form 1 are taxable. Also, report all

Note: Massachusetts adopts the federal exclusion

Unreimbursed expenses are only deductible if all

bartering income not reported on Schedule C (the

for qualified charitable distributions from IRAs and

of the following conditions are met:

fair market value of goods or services received in

◗ you itemize deductions;

Roth IRAs. See TIR 06-20, The Pension Protection

payment for your services).

◗ if you filed a joint U.S. return, you must file a

Act of 2006: Charitable IRA Distributions, for fur-

◗ All prizes and awards won in a quiz program,

ther information.

joint Massachusetts return; and

drawing, beauty contest, etc. are taxable at fair

◗ your unreimbursed business expenses taken

market value. Awards and bonuses received from

Schedule X, Line 2 Worksheet — Taxable

together with the other miscellaneous itemized de-

your employer for performance of services not

IRA/Keogh Plan, Qualified Charitable IRA

ductions reported on U.S. Form 1040, Schedule A,

part of a qualified award plan are also taxable.

Distributions and Roth IRA Conversion

lines 20, 21 and 22 exceed 2% of your federal ad-

◗ Other Massachusetts 5.3% income reported

Distributions

justed gross income reported on U.S. Form 1040,

on U.S. Form 1040, line 21 and not reported else-

Schedule A, line 25. See the following worksheet

Complete this worksheet to report conventional

where in Form 1, lines 3 through 8 or Schedule X,

IRA/Keogh distributions, qualified charitable

for Schedule Y, line 1.

lines 1 through 3 must be reported in line 4 of

IRA distributions or Roth IRA conversion

If you are a qualified performing artist or a fee-basis

Schedule X.

distributions.

state or local government official, do not complete

◗ Pre-1996 installment sales classified as ordinary

1. Total IRA/Keogh plan distributions, qualified

the worksheet. Enter on Schedule Y, line 9 your fed-

income for Massachusetts purposes (from Mass-

charitable IRA deductions, Roth IRA conversion

erally deductible business expenses included on

achusetts Schedule D, line 9) are taxed as 5.3%

distributions in 2006 . . . . . . . . . . . .

U.S. Form 1040, line 24 and fill in the appropriate

income and must be reported on line 4 of Sched-

2. Total IRA/Keogh plan contributions

oval in Schedule Y, line 9.

ule X.

previously taxed by Massachusetts

◗ Embezzled or other income from illegal activi-

Note: Same-sex joint filers should recalculate

3. Total distributions received in

ties is taxable and should be reported on Sched-

their U.S. Form 1040, Schedule A by combining

previous years . . . . . . . . . . . . . . . . .

ule X, line 4.

allowable expenses as reported on U.S. Form

4. Subtract line 3 from line 2. If line 3 is larger

1040, Schedule A, lines 23 and 27 and their ad-

than line 2, enter “0” . . . . . . . . . . . .

The following items should not be reported on your

justed gross incomes as reported on U.S. Form

5. Subtract line 4 from line 1 and enter the

Massachusetts return:

1040, Schedule A, line 24 in calculating U.S.

result here. Not less than “0” . . . . .

◗ Any “net operating loss” reported as a negative

6. Total qualified charitable IRA distributions

Form 1040, Schedule A, line 26. Same-sex joint

amount on U.S. Form 1040, line 21 cannot be en-

in 2006 included in line 1 . . . . . . . .

filers should also recalculate their US. Form 2106 or

tered on Schedule X. A net operating loss from a

7. Taxable IRA/Keogh distributions or Roth

2106-EZ by combining allowable expenses as re-

business or profession cannot be carried forward

IRA conversion distributions. Subtract line 6

ported on U.S. Form 2106, lines 4, 9b and 10 or

or backward to offset individual income in any

from line 5 and enter result here.

U.S. Form 2106-EZ, lines 4, 5 and 6. See TIR 04-17

other year under Massachusetts law.

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

for more information.

◗ Refunds of U.S. and Massachusetts income

Note: You must complete separate worksheets

taxes are not considered income under Massachu-

Schedule Y, Line 1 — Massachusetts Employee

if married filing a joint return and both you and

setts law. If you received interest on refunds, re-

Business Expense Deduction Worksheet

your spouse received IRA/Keogh Plan, qualified

port such interest on Massachusetts Schedule B.

charitable IRA distributions, and/or Roth IRA

1. Enter the amount from U.S. Form 2106,

conversion distributions.

line 10, or 2106-EZ, line 6 . . . . . . . .

Schedule Y

2. If you are an employee other than an outside

Line 3. Other Gambling Winnings

salesperson, enter the amount of unreimbursed

Other Deductions

expenses included in U.S. Form 2106 or

Enter in Schedule X, line 3 all gambling winnings

2106-EZ, line 4 . . . . . . . . . . . . . . . .

Be sure to enclose with Form 1.

from casinos, raffles, races, beano or other events

3. If you are an employee other than an outside

of chance, wherever held, and winnings from non-

Line 1. Allowable Employee

salesperson, enter the amount of unreimbursed

Massachusetts lotteries. Do not enter less than

meals and entertainment expenses included in

Business Expenses

“0.” You may only deduct the price of the winning

U.S. Form 2106, line 9, column B or 2106-EZ,

Generally, reimbursed employee business ex-

ticket. Gambling losses are not deductible under

line 5, except for meals incurred while away

penses are not included in your wages or salary

Massachusetts law. Gambling losses claimed as

from home . . . . . . . . . . . . . . . . . . . .

and therefore are not allowed as deductions.

itemized deductions on U.S. Form 1040, Schedule

4. If you are an individual with a disability,

However, there are unreimbursed and certain re-

A are not allowed on your Massachusetts return.

enter the amount of impairment-related

imbursed expenses for which you are allowed a

expenses included in line 1 and claimed

Note: Do not report Massachusetts state lottery

deduction. Complete the following worksheet in

on line 27 of U.S. Schedule A . . . . .

winnings in Schedule X, line 3. Instead, report them

order to calculate your Massachusetts employee

5. Add lines 2 through 4. Enter the

on Form 1, line 8b.

business expense deduction. The expenses must

result here . . . . . . . . . . . . . . . . . . . .

relate to income reported in lines 3 or 9 on Form 1.

Line 4. Fees and Other 5.3% Income

6. Subtract line 5 from line 1. Enter the

result here . . . . . . . . . . . . . . . . . . . .

Employees may deduct the following:

The following items should be reported on line 4 of

◗ unreimbursed travel and transportation ex-

7. Enter the amount from U.S. Schedule A,

Schedule X. Do not enter less than “0.” Enclose

line 26 . . . . . . . . . . . . . . . . . . . . . . .

penses including lodging and meals away from

additional statements if more space is needed.

8. Enter the smaller amount of line 6 or line 7

home incurred by an employee; and

◗ All fee income, such as payments for jury duty,

here and on Schedule Y, line 1 . . . .

◗ all federally deductible unreimbursed employee

election worker payments, director’s fees, compen-

business expenses, if the employee is a sales-

Instructions For Form 1 - Massachusetts Resident Income Tax - 2006 Page 18

Related Articles

Related forms

Related Categories