Instructions For Form 1 - Massachusetts Resident Income Tax

2006 Form 1 — Before You Begin

Am I a Resident, Nonresident,

ever you are absent, you have the intention of re-

taxes for the real estate taxes paid on the Mass-

turning. Nonresident military personnel stationed

achusetts residential property they own or rent, and

or Part-Year Resident?

in Massachusetts may be subject to Massachu-

which they occupy as their principal residence. The

There are three different categories of resident

setts taxes and should file Form 1-NR/PY if they

credit is the amount by which the real estate tax

status under Massachusetts tax law:

earn income other than from military sources.

payment or 25% of the rent constituting real es-

1. You are a Full-Year Resident if your legal resi-

tate tax payments exceeds 10% of their total in-

The following example illustrates circumstances

dence (domicile) is in Massachusetts or if you

come, but not more than $870. The credit is

under which military pay is or is not taxable in

maintain a permanent place of abode in Massachu-

refundable to the extent the credit exceeds the tax-

Massachusetts. No guidance is intended on the tax

setts and during the year spend more than 183

payer’s tax liability.

status of such pay under the laws of other states.

days, in the aggregate, in the state. If you fit this

Generally, when income is taxable in two jurisdic-

If your spouse died during 2006, you may still

description you should file a Massachusetts Resi-

tions, a credit for taxes paid to the other jurisdic-

choose to file a joint return.

dent Income Tax Return, Form 1.

tion is allowed on the taxpayer’s return in the

2. You are a Nonresident if you were not a resident

How Do I File a Decedent’s Return?

state of his/her residence.

of Massachusetts but earned Massachusetts in-

A final income tax return must be filed for a tax-

Example: Betsy enlisted in the Navy in Massachu-

come (e.g., from a job in Massachusetts). You

payer who died during the taxable year. This re-

setts, but moved with her husband, Eric, from

must report such income by filing a Massachusetts

turn should include income received until date of

Massachusetts to Delaware when she was sta-

Nonresident/Part-Year Resident Income Tax Re-

death. It must be signed and filed by his/her ex-

tioned there. They did not change their domicile to

turn, Form 1-NR/PY.

ecutor, administrator or surviving spouse for the

Delaware. She received military income while her

portion of the year before the taxpayer’s death. Be

3. You are a Part-Year Resident if you either

husband received income working as a reporter for

sure to fill in oval 1 if the taxpayer who was listed

moved into or moved out of Massachusetts dur-

a local newspaper.

first on last year’s income tax return is deceased,

ing the taxable year. In this case, you must reduce

Betsy’s income from the Navy, as well as her hus-

or oval 2 if the taxpayer who was listed second on

certain income, deductions and exemptions based

band’s income from the newspaper, are both sub-

last year’s income tax return is deceased. Also,

on the number of days you were a resident or on

ject to Massachusetts income tax since she

enclose a statement with the refund claimant’s

the amount of your income that is subject to

enlisted in the Navy in Massachusetts and they

name and Social Security number clearly printed.

Massachusetts tax. Part-year residents must file a

did not become legal residents of Delaware. Betsy

Massachusetts Nonresident/Part-Year Resident

A joint return may be filed by a surviving spouse.

and her husband are, therefore, Massachusetts

Income Tax Return, Form 1-NR/PY.

In the case of the death of both spouses, a final re-

residents, and any income they receive, whether

turn must be filed by their legal representative.

If both categories 2 and 3 apply to you, you will

derived in Massachusetts or not, is included in

have to file both as a nonresident and as a part-

Any income received for the decedent for the tax-

their Massachusetts gross income.

year resident. In these cases, you must file one

able year after the decedent’s death, and for suc-

Massachusetts Form 1-NR/PY and complete the

What Are the Rules for Filing

ceeding taxable years until the estate is completed,

Resident/Nonresident Worksheet, Schedule R/NR,

a Joint Return?

must be reported each year on Massachusetts Form

to calculate the portion of income earned while a

2, Massachusetts Fiduciary Income Tax Return.

A joint Form 1 is not allowed if both spouses were

part-year resident and the portion of income

Form 2 is available online at

not Massachusetts residents for the same portion

earned while a nonresident. If you are required to

of 2006.

If the decedent’s return shows a refund due, and if

file as both a part-year resident and a nonresident,

the Probate Court has not appointed a legal repre-

If you are legally married, you have the option of

be sure to fill in the oval below the address section

sentative and none is contemplated, a Massachu-

filing either a joint return or a married filing sepa-

of Form 1-NR/PY to indicate that you are complet-

setts Form M-1310, Statement of Claimant to

rate return. Married taxpayers who file a joint re-

ing Schedule R/NR and enclose Schedule R/NR

Refund Due on Behalf of Deceased Taxpayer, must

turn are allowed to claim the following exemptions,

with your return.

be enclosed with the return so the refund check

deductions and credits which married taxpayers

See TIR 95-7 for more information regarding res-

may be made payable to the proper person.

filing separate returns may not claim:

ident status. For information on how to file as a

◗ a deduction of $3,600 ($7,200 for two or more

Should I Make Estimated Tax

part-year resident/nonresident, visit DOR’s website

dependents) for a dependent member of house-

at or call (617) 887-MDOR or

Payments in 2007?

hold under age 12, or dependent age 65 or over as

toll-free in Massachusetts 1-800-392-6089.

Every resident or nonresident who expects to pay

of December 31, 2006 (not you or your spouse)

more than $400 in Massachusetts income tax on

or a disabled dependent;

Are Military Personnel Required

◗ No Tax Status if joint Massachusetts AGI was

income which is not covered by Massachusetts

to File?

withholding must pay Massachusetts estimated

$15,300 or less plus $1,000 for each dependent;

If you enlisted in the service as a Massachusetts

◗ Limited Income Credit if joint Massachusetts

taxes. Estimated tax payments can be made on-

resident and have not established a new domicile

line by using Web Services for Income by visiting

AGI is between $15,300 and $26,775 plus $1,750

(legal residence) elsewhere, and if your gross in-

or by filing Massachusetts

for each dependent;

come is more than $8,000, you are required to file

◗ excess unused exemptions against interest in-

Form 1-ES. See line 37 instructions and TIR 04-25

a Massachusetts resident income tax return. This

for more information.

come (other than interest from Massachusetts

applies even though you may be stationed outside

banks), dividends or capital gain income; and

of Massachusetts. The terms “legal residence” and

◗ a senior circuit breaker tax credit which allows

“domicile” are used to denote that place where you

senior citizens meeting certain eligibility criteria

have your permanent home and to which, when-

to claim a refundable credit on their state income

Instructions For Form 1 - Massachusetts Resident Income Tax - 2006 Page 7

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