Instructions For Form 1 - Massachusetts Resident Income Tax

Before You Begin

Form 1 Checklist

Major 2006

Circuit Breaker Tax Credit Increased

A credit is allowed to an owner or tenant of resi-

✔

dential property located in Massachusetts equal to

If you received a booklet in the mail, be sure

Tax Changes

the amount by which the real estate tax payment

to retain the four-digit Personal Identification Num-

or 25% of the rent constituting real estate tax pay-

ber (PIN) printed on the back cover. You may need

IMPORTANT: At the time of the printing of these

ment exceeds 10% of the taxpayer’s total income,

it to use DOR’s Web-based and/or Interactive Voice

forms, state legislation to provide relief from the

not to exceed $870. The amount of the credit is

Response (IVR) applications, such as checking the

May 2006 flooding for taxpayers in areas declared

subject to limitations based on the taxpayer’s total

status of your refund.

federal disaster areas in the counties of Essex,

✔

income and the assessed value of the real estate,

Have you entered your Social Security num-

Middlesex, Norfolk, Suffolk and Worcester was

which must not exceed $684,000. For tax year

ber(s) on Form 1?

pending in the legislature but had not been en-

2006, an eligible taxpayer’s total income cannot

✔

acted. Please go to the Department of Revenue’s

If you changed your name, did you enclose a

exceed $46,000 for a single individual who is not

website at for further news and

copy of your Social Security card or driver’s license

the head of a household, $58,000 for a head of

instructions. Also, check the department’s website

showing your new name?

household, and $70,000 for a husband and wife

✔

for any state changes caused by federal legislation

filing a joint return. In order to qualify for the credit,

If you moved, did you leave a forwarding ad-

signed after December 1, 2006.

a taxpayer must be age 65 or older and must oc-

dress with your local post office, file a Change of

cupy the property as his or her principal residence.

Address Form with the Massachusetts Depart-

Personal Exemptions Increased

See TIR 06-17 for more information.

ment of Revenue and fill in the address change

Recent legislation provides that personal exemp-

bubble on Form 1?

tions may increase for tax years beginning on or

Home Heating Fuel Deduction

✔

after January 1, 2004 if tax revenues increase. Ap-

Have you, and your spouse if married filing

For 2006, certain taxpayers may take a deduction

plicable for the 2006 tax year, the personal income

jointly, signed your return at the bottom of page 1

for expenses incurred for home heating oil, nat-

tax exemptions have increased from $3,575 to

of Form 1?

ural gas or propane purchased between January

$3,850 for single and married filing separately fil-

✔

1, 2006 and March 31, 2006, but only if they did

Have you marked an “X” in any form or

ers, from $5,525 to $5,950 for head of household

not take the full $800 deduction for home heating

schedule box that shows a loss?

filers, and from $7,150 to $7,700 for joint filers.

fuel in 2005. The deduction is available to single

✔

Is your Social Security number correct on

taxpayers with adjusted gross income of $50,000

No Tax Status/Limited Income Credit

your Form(s) W-2 or 1099? If incorrect, make the

or less and to joint filers and heads of household

Thresholds

necessary changes on Form(s) W-2 or 1099.

with adjusted gross income of $75,000 or less. A

Because the income level for No Tax Status for

✔

Have you completed Schedule DI, Dependent

qualifying taxpayer who did not take the full $800

joint filers and heads of household is based in part

Information, if claiming a dependent exemption on

deduction in 2005 may take the remainder in

on the personal exemption amounts, the threshold

Form 1, line 2b or taking a deduction/credit(s) on

2006 for purchases made between January 1,

for No Tax Status for these taxpayers has been

Form 1, lines 12, 13 or 38 (if applicable)?

2006 and March 31, 2006. See the Schedule Y,

changed to reflect changes to the personal exemp-

✔

line 14 worksheet to calculate the amount of the

tions. The Limited Income Credit calculation is

If making a payment, have you enclosed

home heating fuel deduction. Special rules apply

similarly affected.

your check and Form PV with your return? Form

for renters and owners of condominiums and co-

PV is attached to the back of the envelope found in

Joint Filers. No tax is imposed if the Massachu-

operative dwellings. See TIR 05-18, available at

this booklet. Be sure to use the light blue mailing

setts adjusted gross income (AGI) does not exceed

, for more information.

label when mailing your Form 1 with the Form PV.

$15,300 plus $1,000 per dependent. Joint filers are

✔

Home Energy Efficiency Tax Credit

eligible for the Limited Income Credit if Massachu-

Are you filing an original copy of the form?

setts AGI does not exceed $26,775 plus $1,750 per

Recent legislation provides the owner of residential

Remember, photocopies of the forms and sched-

dependent.

property located in Massachusetts a credit for cer-

ules are not acceptable.

✔

tain energy efficient heating items purchased be-

Head of Household. No tax is imposed if the

Visit to see the fill-in ver-

tween November 1, 2005 and March 31, 2006 for

Massachusetts AGI does not exceed $13,550 plus

sion of Form 1 and schedules. They are easier and

installation in such property. Qualifying purchases

$1,000 per dependent. Heads of household are el-

quicker to process.

include home insulation, new window installation,

✔

igible for the Limited Income Credit if Massachu-

See page 3 for the correct PO boxes if you are

advanced programmable thermostats, solar hot

setts AGI does not exceed $23,713 plus $1,750 per

using a tax software product.

water systems, fuel-efficient furnaces, boilers, oil,

dependent.

gas, propane, or electric heating systems, certain

Single Filers. No Tax Status for single filers is un-

Health Care

weather sealing, and other approved purchases.

affected by the increase in the personal exemption

The credit allowed for installation of qualifying pur-

amount. For single filers, no tax is imposed if the

chases in any one residential building is 30% of

Reform Act

taxpayer’s Massachusetts AGI does not exceed

the cost; however, the credit cannot exceed $600

$8,000. Single filers are eligible for the Limited

for a residential dwelling or $1,000 for a multi-unit

The Health Care Reform Act of 2006 requires all

Income Credit if Massachusetts AGI does not ex-

dwelling. Joint owners of a residential property

(with few exceptions) Massachusetts residents 18

ceed $14,000.

share any credit available to the property in the

and over to carry health insurance as of July 1,

same proportion as their ownership interest. The

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

2007. Failure to show proof of coverage in effect

credit allowed under this section may be taken in

ify for No Tax Status or the Limited Income Credit.

December 31, 2007 will result in a loss of your per-

2005 or 2006, regardless of the exact date on

sonal tax exemption when filing your 2007 personal

which any qualifying purchases were made. The

income tax return next year. Failure to comply in

amount of credit that exceeds the total tax due for

the following year will result in harsher penalties.

Instructions For Form 1 - Massachusetts Resident Income Tax - 2006 Page 4

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