Instructions For Form 1 - Massachusetts Resident Income Tax - 2013 Page 24
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2013 Form 1 — Line by Line Instructions
Tax on Long-Term
for actual use must be added back to your tax on
3. Enter amount from Form 1,
Form 1. Complete and enclose Schedule H-2,
line 17 . . . . . . . . . . . . . . . . . . . . . . .
Credit Recapture and fill in the appropriate oval(s)
Capital Gains
4. Subtract line 3 from line 2. If “0” or less,
on line 25. Schedule H-2 is available at www.
you do not qualify for this exemption.
mass.gov/dor or by calling (617) 887-MDOR or
Omit remainder of worksheet . . . . .
Line 24. Schedule D
(Long-Term
toll-free in Massachusetts 1-800-392-6089.
5. Excess exemptions applied against interest
Capital Gains and Losses Excluding
and dividend income and 12% income. If line 1
Line 26. Additional Tax on
Collectibles)
is larger than line 4, enter line 4 here and in
Installment Sale
Enter in line 24 the amount from Schedule D, line
Schedule B, line 36. If line 4 is equal to or
An addition to tax applies for taxpayers who have
larger than line 1, enter line 1 here and in
22, but not less than “0.” To determine if you need
deferred the gain, and the tax associated with that
Schedule B, line 36. Complete lines
to file Schedule D, refer to the Schedule D instruc -
6 through 8 . . . . . . . . . . . . . . . . . . .
gain, on certain installment sales. This addition to
tions in this booklet.
6. Subtract line 5 from line 4. If “0,”
tax is measured by an interest charge on the tax
omit remainder of worksheet . . . . .
Schedule B, Line 36 and Schedule D, Line 20
that has been deferred.
7. Enter Schedule D, line 19. Not less
Worksheet. Excess Exemptions from Interest
Include in line 26 an additional tax amount repre-
than “0” . . . . . . . . . . . . . . . . . . . . . .
and Dividend Income, 12% Income and Long-
senting an interest charge on the deferred tax on
8. Excess exemptions applied against long-term
Term Capital Gain Income (Only if Single,
gain from certain installment sales with a sales
capital gain income. If line 7 is larger than line 6,
Head of Household, or Married Filing Jointly)
price over $150,000 if you are not a dealer and the
enter line 6 here and in Schedule D, line 20.
If your total exemptions in Form 1, line 18 are
aggregate face amount of installment obligations
If line 6 is equal to or larger than line 7,
more than the amount of your 5.25% income
arising during the tax year and outstanding as of
enter line 7 here and in Schedule D,
after deductions in Form 1, line 17, the excess
the close of the tax year exceeds $5 million. For
line 20 . . . . . . . . . . . . . . . . . . . . . . .
may be applied against any interest and divi -
more information see G.L. c. 62C, sec. 32A (a) and
dend income and income taxed at 12%. Any
Excess Exemptions
I.R.C. sec. 453A (a)–(c).
remaining excess amount may then be applied
If excess exemptions were used in calculating lines
Also include in line 26 an additional tax amount
against any long-term capital gain income.
20, 23 or 24 (see Schedule B, line 36 and/or Sched -
representing an interest charge on the deferred
Complete this worksheet only if Form 1, line 17
ule D, line 20), be sure to fill in the oval in line 24.
gain from the installment sale of timeshares and
is less than Form 1, line 18 and you received
residential lots, if the sale meets one of the follow-
interest income (other than interest from Mass -
Line 25. Credit Recapture Amount
achu setts banks), dividends or capital gain
ing criteria: 1) the sale is of a timeshare right for 6
If any Brownfields Credit (BC), Economic Opportu-
income to determine if you qualify for the
weeks or less; 2) the sale is for the recreational
nity Area Credit (EOA), Low Income Housing Credit
excess exemption. Enter all losses as “0.”
use of specified campgrounds; or 3) the sale is for
(LIH) or Historic Rehabilitation Credit (HR) prop-
a residential lot and neither the dealer nor some-
1. Enter amount from Schedule B,
erty is disposed of or ceases to be in qualified use
one related to the dealer is obligated to make any
line 35. Not less than “0” . . . . . . . .
prior to the end of its useful life, the difference be-
improvements on the lot. For more information
2. Enter amount from Form 1,
tween the credit taken and the total credit allowed
see G.L. c. 62C, sec. 32A (b) and I.R.C. sec.
line 18 . . . . . . . . . . . . . . . . . . . . . . .
453(l)(2)(B).
If you are a partner in a partnership or a share-
No Tax Status/Limited Income Credit Chart
holder in an S corporation, the entity is required to
Filing status:
send you the information you need to calculate the
Number of dependents
Head of household. Line 7 of
Married filing a joint return.
addition to tax under this provision.
(from Form 1, line 2b):
the AGI worksheet is less than
Line 7 of the AGI worksheet
To the extent practicable, Massachusetts follows
or equal to:
is less than or equal to:
federal income tax rules in determining the de-
0
$14,400
$25,200
$16,400
$28,700
ferred gain from installment sales subject to the
1
15,400
26,950
17,400
30,450
interest-charge addition to tax. For more informa-
16,400
28,700
18,400
2
32,200
tion visit DOR’s website at and
3
17,400
30,450
19,400
33,950
Internal Revenue Service Publication 537.
4
18,400
32,200
20,400
35,700
5
19,400
33,950
21,400
37,450
20,400
35,700
22,400
6
39,200
Massachusetts
you qualify for
you may qualify
you qualify for
you may qualify
No Tax Status
for the Limited
No Tax Status
for the Limited
Adjusted Gross
Income Credit
Income Credit
Income (AGI)
If the number of dependents is more than 6, add $1,000 per dependent to the No Tax Status column, or
$1,750 per dependent to the Limited Income Credit column.
If you qualify for No Tax Status, fill in the oval in line 27, enter “0” in line 28 and omit lines 29 and 30.
No Tax Status — Single, Married Filing a
Also, enter “0” in line 31 and complete Form 1. However, if there is an amount entered in line 25, Credit
Joint Return or Head of Household Only
Recapture Amount and/or line 26, Additional Tax on Installment Sales, enter that amount in line 28 and
If your Massachusetts AGI was $8,000 or less if
complete line 30. If you may qualify for the Limited Income Credit, go to line 28 and complete the
single, $14,400 or less plus $1,000 per depen-
worksheet for line 29.
dent if head of household, or $16,400 or less plus
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