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2006 Form 1-NR/PY Instructions — Line by Line Instructions

Please note that you are not single if: 1) you have

New — Whole Dollar Method Now

the Massachusetts law. The Commissioner may

obtained a judgment of divorce which has not yet

waive or abate the penalty if the inconsistency or

Required

become final; 2) you have a temporary support

failure to disclose was attributable to reasonable

The Department of Revenue now requires that the

order; or 3) you and your spouse simply choose

cause and not willful neglect.

whole dollar method be used for entries made on

to live apart.

forms or schedules. For example, amounts be-

Line 4. Exemptions

tween $1.00 and $1.49 should be entered as $1.00

Married Filing Joint Return

Line 4a: Personal Exemptions

and amounts between $1.50 and $2.00 should be

Fill in the “Married filing joint return” oval if you

Each taxpayer is entitled to claim a personal ex-

entered as $2.00. However, calculations on work-

were legally married as of December 31, 2006,

emption. The amount of your personal exemption

sheets used to reach amounts shown on the re-

and you elect to file a joint return. A joint return is

depends on your filing status as filled in line 1.

turn may be made in one of two ways: (1) round

allowed even if only one spouse had income. Both

◗ If you are single or married filing a separate

amounts before adding them up and enter the re-

spouses are responsible for the accuracy of all in-

sulting total on the form, or (2) add amounts to

return, enter $3,850 in item a.

formation entered on a joint return, and both must

◗ If filing as head of household, enter $5,950 in

the penny, and then round to the whole dollar for

sign. If your spouse died during 2006, you may

entry on the form. Either method is acceptable as

item a.

still choose to file a joint return.

long as one method is used consistently through-

◗ If married filing a joint return, enter $7,700 in

Please note that a joint Form 1-NR/PY is not al-

out the return.

item a.

lowed unless each spouse is reporting income for

Line 4b: Number of Dependents

Line 3. Total U.S. Income

the same resident or nonresident period. For ex-

You may claim a $1,000 exemption for each of

ample, John (a Massachusetts resident) and Jane

Enter the amount of your total income before ad-

your dependents if you claimed them on your

(a New Hampshire resident) both work in Mass-

justments from your U.S. return — U.S. 1040, line

U.S. return. Enter in the box in item b the number

achusetts. After they were married in June 2006,

22; 1040A, line 15; 1040EZ, line 4; 1040NR, line

of dependents you listed on U.S. Form 1040 or

John moved to New Hampshire to live with Jane.

23; or 1040NR-EZ, line 7. This item is requested

1040A, line 6c or U.S. Form 1040NR, line 7c. Do

They cannot file a joint return because their non-

for administrative reasons; it is not used in the

not include yourself or your spouse. Then, multiply

resident tax years are different. (Jane lived in New

calculation of your tax.

that total by $1,000 and enter the total amount in

Hampshire during the entire year, but John only

Note: If you are filing Form 1-NR/PY as “married

line 4b. Be sure to fill out Schedule DI, Depen-

lived there for six months.)

filing separate return” and you filed your U.S. re-

dent Information, if you are claiming a dependent

Note: Same-sex spouses filing a Massachusetts

turn jointly, the amount entered in line 3 should

exemption(s). Failure to do so will delay the proc-

joint return should combine their figures from

only be the amount attributable to your portion of

essing of your return.

their separate U.S. returns.

total U.S. income.

Note: In a few cases, the number of dependents

Married Filing Separate Return

Noncustodial Parent

claimed for Massachusetts purposes and for U.S.

purposes may differ. For U.S. tax purposes, a de-

Fill in the “Married filing separate return” oval if

Fill in this oval if you are a “noncustodial parent.”

pendent exemption is not allowed for a person

you were legally married as of December 31, 2006,

A noncustodial parent is defined as a person who

who would otherwise be a dependent but who files

but you elect to file separately. Enter your spouse’s

has a minor child, but does not live with the child.

his/her own income tax return and claims a per-

Social Security number in the space provided.

Note: If you are the biological parent of a child,

sonal exemption. For Massachusetts tax purposes,

but your parental rights have been terminated, you

Head of Household

you can claim a dependent exemption for such a

are not the noncustodial parent of that child.

person. If you claim such a dependent in Mass-

Fill in the “Head of household” oval if you qualify

Schedule TDS — Inconsistent Filing

achusetts, increase the number reported in item b

to file this status federally. This status is for un-

from your U.S. return by the number of such addi-

married people who paid over half the cost of

Position Penalty

tional dependents.

keeping up a home for a qualifying person, such

Fill in the oval and attach Schedule TDS, Taxpayer

as a child who lived with you or your dependent

Disclosure Statement, if you are disclosing any in-

Line 4c: Age 65 or Over Before 2007

parent. Certain married people who lived apart

consistent filing positions. Schedule TDS is avail-

You are allowed an additional $700 exemption if

from their spouse for the last six months of 2006

able on our website at The

you were age 65 or over before January 1, 2007. If

may also be able to use this status. See IRS Publi-

inconsistent filing position penalty (see TIR 06-5,

your spouse was age 65 or over and you are filing

cation 501, Exemptions, Standard Deduction, and

section IV) applies to taxpayers that take an in-

a joint return, you may also claim a $700 exemp-

Filing Information, for more information.

consistent position in reporting income. These

tion for your spouse. Fill in the appropriate oval(s)

taxpayers must “disclose the inconsistency” when

and enter the total number of persons age 65 or

Line 2. Part-Year Resident

filing their Massachusetts return. If such inconsis-

over in the small box. Then, multiply that total by

Proration Formula

tency is not disclosed, the taxpayer will be subject

$700 and enter the total amount in line 4c.

to a penalty equal to the amount of tax attributable

Part-year residents must fill out the proration for-

mula in line 2. Enter the dates you were a Mass-

to the inconsistency. This penalty is in addition to

Line 4d: Blindness Exemption

any other penalties that may apply.

achusetts resident in the spaces provided. Then,

You are allowed an additional $2,200 exemption if

enter the total days you were a Massachusetts res-

you are legally blind. If your spouse is also legally

A taxpayer is deemed to have taken an “inconsis-

ident and divide this number by 365 and carry this

blind and you are filing a joint return, you may

tent position” when the taxpayer pays less tax in

division out to four decimal places. Failure to do so

also claim a $2,200 exemption for your spouse.

Massachusetts based upon an interpretation of

may delay the processing of your return. This fig-

Fill in the appropriate oval(s) and enter the total

Massachusetts law that differs from the position

ure is used to determine the portion of certain de-

number of blindness exemptions in the small box.

taken by the taxpayer in another state where the

ductions, exemptions and the earned income credit

Then, multiply that total by $2,200 and enter the

taxpayer files a return and the governing law in that

a part-year resident may be eligible for.

total amount in line 4d.

other state “is the same in all material respects” as

Instructions For Form 1-Nr/py - Massachusetts Nonresident Or Part-Year Resident Income Tax - 2006 Page 10

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