Instructions For Form 1-Nr/py - Massachusetts Nonresident Or Part-Year Resident Income Tax - 2006 Page 16
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2006 Form 1-NR/PY Instructions — Line by Line Instructions
Line 17. Dependent Member(s)
turn. However, a married couple filing separately
Enter in line 24 the amount from Schedule B, line
may allocate the rent deduction differently, pro-
38. If not required to file Schedule B, enter divi-
of Household Under Age 12, or
vided the amount taken by each spouse does not
dend income of $1,500 or less (from U.S. Form
Dependents Age 65 or Over
(not
exceed 50% of the rent actually paid by that
1040 or 1040A, line 9a) in line 24.
as of December
you or your spouse)
spouse, and provided their combined rental deduc-
Line 25. Total Taxable 5.3% Income
31, 2006, or Disabled Dependent
tions do not exceed $3,000. If this results in one
Add line 23 and line 24.
You may deduct $3,600 for a dependent member
spouse claiming a deduction in excess of $1,500,
of household, or $7,200 for two or more depen-
that spouse must enclose with his/her return a
Tax on 5.3% Income
dents, under age 12, or dependent age 65 or over
statement signed by the other spouse indicating
(not you or your spouse) as of December 31,
consent to the allocation. The statement must con-
2006, or disabled dependent. Enter the number of
tain the name, address and Social Security number
Line 26. 5.3% Tax
qualified dependents in line 17a, not to exceed two,
of the consenting spouse and the amount of rental
Based upon the amount in line 25, find the proper
and multiply that amount by $3,600. Enter the re-
deduction taken by that spouse.
amount of tax from the table at the back of this
sult in line 17. Only if single, head of household or
booklet. Enter the tax in line 26. If line 25 is more
Line 19. Other Deductions
married filing jointly. You cannot claim this deduc-
than $24,000, multiply the amount in line 25 by
tion if married filing a separate return.
(from Schedule Y)
.053 and enter the result in line 26. You must use
Enter the total from Schedule Y, line 17. Be sure
Note: You may claim an amount in line 17 only if
the tax table if line 25 is $24,000 or less.
to enclose Schedule Y with your return. Failure to
there is no entry in line 16.
Note: Personal income tax forms must provide an
do so will delay the processing of your return.
◗ Nonresidents, multiply this amount by line 14g
election to voluntarily pay tax at a rate of 5.85% on
and enter the result in line 17 of Form 1-NR/PY.
Line 22. Exemption Amount
taxable income which would otherwise be taxed
Part-year residents, multiply this amount by line 2
Enter amount from Exemption Section, line 4,
at a rate of 5.3%. The election to pay tax at the rate
and enter the result in line 17 of Form 1-NR/PY.
item f in line 22a.
of 5.85% does not apply to items of income taxed
Line 18. Rental Deduction
at 12% (short-term capital gains and gains on col-
Nonresidents. Prorate your exemptions using the
lectibles). If choosing the optional 5.85% tax rate,
Nonresidents are allowed a deduction equal to
ratio of your Massachusetts income to your total
multiply line 26 and Schedule D, line 20 by .0585
50% of the rent they pay, up to a maximum of
income by multiplying line 22a by line 14g and en-
and fill in the oval.
$3,000, for their principal residence only if it is lo-
tering the result in line 22. This amount represents
cated in Massachusetts and is their sole residence.
your prorated exemptions.
12% Income
(Non-Massachusetts rent is never deductible.)
Part-year residents. Prorate your total exemp-
Many nonresidents rent a house or apartment in
tions claimed on Form 1-NR/PY by multiplying
and Tax
Massachusetts, but few qualify for this deduction.
line 22a by line 2 and entering the result in line 22.
This is because the house or apartment rented
This amount represents your prorated exemptions
here is not their principal residence. Only those
Line 27. 12% Income from Certain
as a part-year resident.
nonresidents who rented a house or apartment in
Capital Gains
Massachusetts and have no family home or other
Line 23. 5.3% Income After
Enter in line 27a the amount from Schedule B, line
dwelling to which they normally return (or to which
Exemptions
39. Multiply this amount by .12 (12%) and enter
they could return in the future) in any other state
Subtract line 22 from line 21. Enter the result in
the tax in line 27. Be sure to enclose Massachu-
or country, can claim this deduction. Complete
line 23, but not less than “0.”
setts Schedule B. To determine if you need to file
line 18 only if you filled in the “no” oval below line
Schedule B, refer to the Schedule B instructions of
If line 22 exceeds line 21 and you received interest
18. Enter the total amount of qualified rent paid by
this booklet.
income (other than interest from Massachusetts
you during 2006 in line 18a. Divide line 18a by 2
banks), dividends or capital gain income, complete
and enter the result, or $3,000 ($1,500 if married
Long-Term
the worksheet for Schedule B, line 36 and Sched-
filing a separate return) — whichever is smaller
ule D, line 19, if applicable. All others proceed to
— in line 18. Part-year residents are entitled to
line 24.
Capital Gain Tax
the rental deduction equal to 50% for the rent they
paid during 2006 (up to a maximum of $3,000 per
Line 24. Interest and Dividend
return) for their principle residence while a resident
Line 28. Schedule D
(Long-Term
Income
of Massachusetts. Enter the total amount of qual-
Capital Gains and Losses Excluding
ified rent paid by you during 2006 in line 18a. Di-
If you have any interest income other than interest
Collectibles)
vide line 18a by 2 and enter the result, or $3,000
from deposits in banks located in Massachusetts,
($1,500 if married filing a separate return) —
Enter in line 28 the amount from Schedule D, line
dividend income in excess of $1,500, certain cap-
whichever is smaller — in line 18.
21, but not less than “0.” To determine if you
ital gains or losses, or any adjustments to interest
need to file Schedule D, refer to the Schedule D in-
income (other than interest from Massachusetts
Note: This deduction does not apply to your U.S.
structions of this booklet.
banks), you must complete Schedule B. Be sure to
tax return.
enclose Massachusetts Schedule B. To determine
How Do I Calculate My Rental Deduction
if you need to file Schedule B, refer to the Sched-
If I Am Married Filing Separately?
ule B instructions of this booklet.
If a husband and wife file separate returns, they are
each entitled to a rental deduction equal to 50% of
the rent each pays, not to exceed $1,500 per re-
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