Instructions For Form 1 - Massachusetts Resident Income Tax - 2013 Page 31
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2013 Form 1 — Schedule Instructions
U.S. Form 1040, line 36. Identify jury duty pay
Line 14. Claim of Right Deduction
Schedule Y, Line 11 Worksheet. College
given to your employer as “Jury pay”; reforesta-
Taxpayers who have paid Massachusetts personal
Tuition Deduction
tion amortization as “RFST”; repayment of supple -
income taxes in a prior year on income attributed
1. Enter total tuition payments paid by you, for
mental unemployment benefits under the Trade
to them under a “claim of right” may deduct the
yourself or a dependent, to a qualify-
Act of 1974 as “Sub-Pay TRA”; attorney fees and
amount of that income from their gross income if it
ing two- or four-year college in 2013
court costs involving certain unlawful discrimina-
later develops that they were not in fact entitled to
2. Enter amount of scholarships, grants or
tion claims as “UDC”; and deductible expenses re-
the income, and have repaid the amounts in ques-
financial aid received in 2013 for
lated to income reported on U.S. Form 1040, line
tion. The deduction is allowed in the year of repay -
amounts shown in line 1 . . . . . . . . .
21 and Massachusetts Schedule X, line 4 from the
ment, provided that the repayment is not otherwise
3. Enter amount of reimbursements or refunds
rental of personal property engaged in for profit
deductible in determining Massachusetts income
received in 2013 of amounts shown in line 1
as “PPR.” Fill in the appropriate oval in line 9 of
taxable under M.G.L. ch. 62. Some examples in
reported by an insurer (from US Form
Schedule Y.
which the claim of right may be applied for are:
8383, box 10) . . . . . . . . . . . . . . . . .
Business Expenses of National Guard and
4. Subtract lines 2 and 3 from line 1. If “0”
Stock under claim of ownership. Gains from
Reserve Members, Performing Artists and Fee-
or less, you do not qualify for this
sales of stock under a claim of ownership must be
deduction. . . . . . . . . . . . . . . . . . . . .
Based Government Officials: Enter the amount
included, regardless of whether the taxpayer actu-
5. Enter amount from line 7 of the
from U.S. Form 1040, line 24 and fill in the appro-
ally owned it;
Massachusetts AGI Worksheet . . . .
priate oval in line 9 of Schedule Y.
Employment contracts. Amounts in settlement
6. Multiply line 5 by .25. . . . . . . . . .
of employment contracts must be included not -
Line 10. Student Loan Interest
7. If line 4 is smaller than line 6, you are not
with standing the prospect of eventual repayment
eligible for this deduction. Enter “0.” If line 4
Deduction
to the employer of an amount equivalent to or
is larger than line 6, subtract line 6 from line 4
Enter the amount from U.S. Form 1040, line 33 or
greater than the amount received;
and enter the result here and on
1040A, line 18, not to exceed $2,500. This deduc-
Schedule Y, line 11 . . . . . . . . . . . . .
Dividends. Where a taxpayer receives a dividend
tion is only allowed if not claiming the same ex-
that must be repaid in a later year (e.g., because it
penses in line 12 of Schedule Y, Undergraduate
Line 12. Undergraduate Student
impaired corporate capital), the dividend must be
Student Loan Interest Deduction.
Loan Interest Deduction
included in the year of receipt;
Line 11. College Tuition Deduction
A deduction is allowed for interest paid on a qual-
Corporate notes. Where a taxpayer receives a
A deduction is allowed for tuition payments paid
ified undergraduate student loan. To be eligible for
distribution with respect to holding of notes, the
by you, for yourself or a dependent, to a qualifying
the deduction, the “education debt” must be a loan
income must be included regardless of whether it
two- or four-year college leading to an undergrad-
that is administered by the financial aid office of a
could be challenged by senior creditors;
uate or associate’s degree, diploma or certificate.
two-year or four-year college at which you, or a
Mistake in validity of claim. The claim of right
Tuition payments for students pursuing graduate
qualified dependent, were enrolled as an under-
doctrine applies where a taxpayer merely mistakes
degrees at such a college or university are not eli-
graduate student. Additionally, the loan must have
the validity of his claim; or
gible for the college tuition deduction. The deduc-
been secured through a state student loan pro-
tion is equal to the amount by which the tuition
gram, a federal student loan program, or a com-
Advanced insurance commissions.
payments, less any scholarships, grants or finan-
mercial lender, and must have been spent solely
If you are entitled to claim this deduction, enter the
cial aid received, exceed 25% of Massachusetts
for the purposes of paying tuition and other ex-
amount claimed in Schedule Y, line 14. For more
AGI. The amount of the college tuition deduction
penses directly related to the school enrollment.
information, see TIR 06-4.
is limited to qualified tuition expenses paid during
Enter the amount of such interest paid in Sched-
a taxable year in connection with an academic
ule Y, line 12. This deduction is only allowed if not
Line 15. Commuter Deduction
term beginning during such taxable year or dur-
claiming the same expenses in line 10 of Sched-
A deduction is allowed for certain amounts paid by
ing the first three months of the next taxable year.
ule Y, Student Loan Interest Deduction.
an individual for tolls paid for through an E-ZPass
account or for weekly or monthly transit com-
Qualified tuition expenses include only those ex-
Line 13. Deductible Amount of
muter passes for MBTA transit, bus, commuter rail
penses designated as tuition or mandatory fees
Qualified Contributory Pension
or commuter boat, not including amounts reim-
required for the enrollment or attendance of the tax-
Income from Another State or
bursed or otherwise deductible.
payer or any dependent of the taxpayer at an eligi-
Political Subdivision Included in
ble educational institution. No deduction is allowed
In the case of a single person or a married person
for any amount paid for room and board, books,
Form 1, Line 4
filing a separate return or a head of household, this
supplies, equipment, personal living expenses,
Massachusetts allows a deduction for contribu-
deduction applies only to the portion of such ex-
meals, lodging, travel or research, athletic fees, in-
tory pension income received from another state
pended amount that exceeds $150, and the total
surance expenses or other expenses unrelated to
or one of its political subdivisions which does not
amount deducted cannot exceed $750. In the case
an individual’s academic course of instruction.
tax such income from Massachusetts or its politi-
of a married couple filing a joint return, this deduc-
Also, no deduction is allowed for reimbursements
cal subdivi sions. For guidelines to determine which
tion applies only to the portion of such amount ex -
or refunds of qualified tuition and related ex-
state’s pen sions are exempt in Massachusetts, see
pended by each individual that exceeds $150, and
penses made by an insurer. Complete the Mass-
TIR 95-9. Enter any deductible amount of such in-
the total amount deducted cannot exceed $750 for
achusetts AGI Worksheet and the Schedule Y, line
come in line 13 of Schedule Y that was included in
each individual. Also, one spouse cannot transfer
11 worksheet to see if you may qualify for this
Form 1, line 4.
his or her excess deduction to the other spouse;
deduction. See TIR 97-13 for more information.
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