Instructions For Form 1 - Massachusetts Resident Income Tax

2006 Form 1 — Schedule Instructions

Line 2. Penalty on Early Savings

Line 8. Health Savings Accounts

Line 10. Student Loan Interest

Withdrawal

Deduction

Enter in Schedule Y, line 8 the amount from U.S.

Form 1040, line 25.

If you were charged a penalty because of early

Enter the amount from U.S. Form 1040, line 33 or

withdrawal of savings, and interest on the savings

1040A, line 18. This deduction is only allowed if

Line 9. Other Qualified Deductions

that such a penalty relates to is reported on this

not claiming the same expenses in line 12 of

You may claim only the deductions listed below for

return or on a prior year Massachusetts return,

Schedule Y, Undergraduate Student Loan Interest

Schedule Y, line 9. If you are entitled to claim any

you may deduct the penalty. This deduction is the

Deduction.

of the deductions in line 9, fill in the appropriate

same as the amount allowable on U.S. Form 1040,

Note: Same-sex joint filers must use the “Student

oval(s) and enter the total amount of deductions

line 30. Enter this amount in line 2 of Schedule Y.

Loan Interest Deduction” worksheet in the instruc-

claimed in line 9.

tions to U.S. Form 1040 or 1040A making sure to

Line 3. Alimony Paid

◗ Certain qualified deductions from U.S. Form

combine their income figures, and performing the

Enter in Schedule Y, line 3 the total amount that

1040. Do not include any amounts reported on

calculation as though they were filing a joint fed-

you paid to your former spouse during 2006 for

U.S. Form 1040, lines 23 through 35 that are in-

eral return. See TIR 04-17 for more information.

alimony or separate maintenance under court de-

cluded in Form 1040, line 36 total. Enter only

cree, or for excess alimony amounts recaptured,

Line 11. College Tuition Deduction

amounts included in U.S. Form 1040, line 36 as an

as reported on U.S. Form 1040, line 31a.

adjustment, except amounts contributed to sec.

A deduction is allowed for tuition payments paid

501(c)(18) pension plans. For Massachusetts pur-

Note: Alimony payments specified as child sup-

by you, for yourself or a dependent, to a qualifying

poses, contributions to sec. 501(c)(18) pension

port are not deductible.

two- or four-year college leading to an undergrad-

plans are not deductible. Also, the IRC sec. 404

uate or associate’s degree, diploma or certificate.

Line 4. Amounts Excludible Under

deduction for contributions on behalf of IRC sec.

Tuition payments for students pursuing graduate

401(c)(1) employees (sole proprietors and part-

MGL Ch. 41, Sec. 111F or U.S. Tax

degrees at such a college or university are not eli-

ners) is disallowed. See TIR 02-18 (I)(D) and DOR

gible for the college tuition deduction. The deduc-

Treaty Included in Form 1, Line 3.

Directive 01-7 for more information.

tion is equal to the amount by which the tuition

Massachusetts allows an exclusion from income

payments, less any scholarships, grants or finan-

On the dotted line next to line 9, be sure to indicate

of amounts received by a firefighter or police offi-

cial aid received, exceed 25% of Massachusetts

the type of deduction being taken, as identified on

cer incapacitated in the line of duty, per MGL Ch.

AGI. Qualified tuition expenses include only those

U.S. Form 1040, line 36. Identify reforestation

41, sec. 111F, and an exclusion from income of

expenses designated as tuition or mandatory fees

amortization as “RFST”; repayment of supplemen-

amounts received by qualifying students exempt

required for the enrollment or attendance of the

tal unemployment benefits under the Trade Act of

under a U.S. tax treaty.

taxpayer or any dependent of the taxpayer at an

1974 as “Sub-Pay TRA”; the deduction for clean-

Enter any excludible amount of income received

eligible educational institution. No deduction is al-

fuel vehicles as “Clean-Fuel”; attorney fees and

while you were a firefighter or police officer inca-

lowed for any amount paid for room and board,

court costs involving certain unlawful discrimina-

pacitated in the line of duty in line 4 of Schedule Y

books, supplies, equipment, personal living ex-

tion claims as “UDC”; and deductible expenses

that was included in Form 1, line 3, and fill in the

penses, meals, lodging, travel or research, athletic

related to income reported on U.S. Form 1040,

appropriate oval.

fees, insurance expenses or other expenses unre-

line 21 and Massachusetts Schedule X, line 4 from

If you were a qualifying student or a taxpayer with

lated to an individual’s academic course of instruc-

the rental of personal property engaged in for

income exempt under a U.S. tax treaty, enter any

tion. Complete the Massachusetts AGI Worksheet

profit as “PPR.” Fill in the appropriate oval in line 9

excludible amount of income received that was ex-

and the Schedule Y, line 11 worksheet to see if

of Schedule Y.

empt under a U.S. tax treaty in line 4 of Schedule Y

you may qualify for this deduction. See TIR 97-13

◗ Jury duty pay you gave to your employer. Enter

that was included in Form 1, line 3, and fill in the

for more information.

the amount from U.S. Form 1040, line 34 and fill

appropriate oval.

in the appropriate oval in line 9 of Schedule Y.

Schedule Y, Line 11 Worksheet —

Line 5. Moving Expenses

College Tuition Deduction

Note: The deduction for clean-fuel vehicles has

Enter in Schedule Y, line 5 the amount from U.S.

expired for federal income tax purposes but is still

1. Enter total tuition payments paid by you, for

Form 1040, line 26.

allowed for Massachusetts income tax purposes

yourself or a dependent, to a qualifying two- or

for clean-fuel vehicles purchased in 2006. Calcu-

four-year college in 2006 . . . . . . . .

Line 6. Medical Savings Account

late the Massachusetts deduction for clean-fuel

2. Enter amount of scholarships, grants or

Enter in Schedule Y, line 6 the amount of the Med-

vehicles purchased in 2006 using the same fed-

financial aid received in 2006 for amounts

ical Savings Account deduction from U.S. Form

eral rules and amounts as allowed for 2005 clean

shown in line 1 . . . . . . . . . . . . . . . .

1040, line 23.

3. Subtract line 2 from line 1. If “0” or less,

fuel vehicle purchases.

you do not qualify for this deduction

◗ Business Expenses of National Guard and

Line 7. Self-Employed Health

4. Enter amount from line 7 of the

Reserve Members, Performing Artists and Fee-

Insurance

Massachusetts AGI Worksheet . . .

Based Government Officials: Enter the amount

5. Multiply line 4 by .25 . . . . . . . . . .

Enter in Schedule Y, line 7 the amount from U.S.

from U.S. Form 1040, line 24 and fill in the appro-

6. If line 3 is smaller than line 5, you are not

Form 1040, line 29.

priate oval in line 9 of Schedule Y.

eligible for this deduction. Enter “0.” If line 3

Note: If you elected to claim the federal credit under

is larger than line 5, subtract line 5 from line 3

sec. 35 and had to reduce the amount on U.S. Form

and enter the result here and in line 11 on

1040, line 29 by the amount of the federal credit,

Schedule Y . . . . . . . . . . . . . . . . . . .

you may add back the amount of the credit to the

amount entered on U.S Form 1040, line 29.

Instructions For Form 1 - Massachusetts Resident Income Tax - 2006 Page 19

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