Massachusetts Individual Income Tax Instructions

Individual Income Tax Instructions
2025 Massachusetts Form 1 instruction booklet
Department of Revenue

Commonwealth of Massachusetts

Form 1 2025
Massachusetts

Resident Income Tax

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Before using paper, consider

Fast — Filing electronically, rather than on paper, can mean
faster processing of your refund and money in your account sooner.
Accurate — Generally, electronic filings have fewer errors than

paper forms. Online programs make it easy to ensure you don’t miss
anything important.

Ecofriendly — A great majority of Massachusetts taxpayers file
electronically. Help us to continue reducing our carbon footprint.

Affordable — Many Massachusetts taxpayers qualify to use

commercial tax preparation software at no charge. Check out the
free filing option through MassTaxConnect.

Get ready to
e-file this year!
There are three easy and convenient ways to do it.

1

E-File for Free
Many Massachusetts taxpayers qualify to file their federal and state returns for free. Check if you qualify at mass.gov/efile.
You may also be able to file your tax return online through DOR's MassTaxConnect. You qualify for this option if you previously
filed a Massachusetts return, and the forms you need for your return are supported by the program.

2
3

Tax Preparation Software
You can also e-file using commercial tax filing products. Visit our website for a complete list of approved products. While some of
these products offer a paper filing option, you may only use that if it includes a 2D barcode in the upper right corner of all pages. If
you experience issues with 2D printing, contact the software company for instructions before filing to prevent rejection. Also, be
sure to use the correct mailing address for 2D barcode forms: Massachusetts Department of Revenue, PO Box 7000, Boston, MA,
02204 for refunds or no payments, or Massachusetts Department of Revenue, PO Box 7003, Boston, MA, 02204 for payments. For
more information, see DOR’s online tax form instructions.

Tax Preparers
Most paid tax preparers offer e-filing services to help clients avoid errors, delays, and longer refund times. Legally, any preparer
who files more than 10 Massachusetts income tax returns must e-file (TIR 11-13 includes a specific taxpayer opt-out option for this
law). Preparers submitting paper returns for clients must meet certain requirements to avoid penalties and fines. A list of tax
preparers is available on our website.
Additionally, free tax return preparation is available for qualifying taxpayers. Visit mass.gov/taxassistance to check if you qualify.

mass.gov/efile

If Paper is Your Only Option
For some, filing on paper may be the only option. DOR now offers fillable PDF forms to complete your tax return, which makes the processing of your return
easier and avoids delays. You can directly enter your tax information and print and send it to DOR. For more information, see mass.gov/dor/incomeforms.

2025 Form 1 Instructions

Major 2025
Tax Changes

For more up-to-date and detailed information and
to view all of the public written statements referenced in these instructions, visit mass.gov/dor.

Filing Due Dates

Form 1 is due on or before April 15, 2026.

4% Surtax

Starting with tax year 2023, personal income taxpayers must pay an additional 4% on taxable income over $1,000,000, increased annually for
inflation. For the 2025 tax year, the threshold is
$1,083,150.

Employer-Provided Parking, Transit Pass,
and Commuter Highway Vehicle Benefits
Exclusion Amounts

Massachusetts conforms to the federal income
exclusion for employer-provided parking, transit pass, and commuter highway vehicle transportation benefits. The IRS has determined that
the 2025 inflation-adjusted monthly exclusion
amounts are $325 for employer-provided parking and $325 for combined transit pass and commuter highway vehicle transportation benefits.

Penalty for Failure to Obtain Health
Insurance

Massachusetts requires most adults 18 and over
with access to affordable health insurance to obtain it. In 2025, individuals must be enrolled in
health insurance policies that meet minimum
creditable coverage standards defined in regulations adopted by the Commonwealth Health Insurance Connector Authority (Health Connector).
Individuals who are deemed able to afford health
insurance but fail to obtain it are generally subject
to penalties in Massachusetts for each month of
noncompliance in the tax year. The monthly penalties for 2025, which will be imposed through the
individual’s personal income tax return, are set out
in Technical Information Release (TIR) 25-1 and
are based on the monthly insurance premium for
which an individual would have qualified through
the Health Connector.

Withholding on Sales of Massachusetts
Real Estate

Sales of Massachusetts real estate are subject to
withholding on the gross sales price or estimated
net gain from the sale, when the gross sales price
equals or exceeds $1,000,000. The amount withheld is calculated based on the gross sales price
of the real estate, unless the seller elects the alternative withholding calculation based on the seller’s estimated net gain from the sale of the real
estate. The seller must report gain from the sale of
real estate on their return for the tax year in which
the sale takes place, and the seller may claim the

3
amount withheld as a credit on their return. The
credit is available for tax years beginning on or
after January 1, 2025, for real estate closings that
occur on or after November 1, 2025. There are
many exemptions from the withholding requirement, including for sales by residents, but there
are reporting requirements applicable to all sellers.
For additional information see 830 CMR 62B.2.4
and the Department’s website at mass.gov/dor.

Circuit Breaker Tax Credit

Taxpayers aged 65 or older who own or rent residential property located in Massachusetts are allowed a credit equal to the amount by which their
total real estate tax payments, or 25% of their rent
in the case of a renter, exceeds 10% of the taxpayer’s total income. The credit cannot exceed a
certain maximum amount that is determined by
multiplying a statutory base amount by a cost-ofliving adjustment for the calendar year in which the
taxable year begins. The maximum credit for tax
year 2025 is $2,820.
The amount of the credit is subject to limitations
based on the taxpayer’s total income and the assessed value of the real estate, which for tax year
2025 must not exceed $1,298,000. For purposes
of calculating the credit, total income and maximum credit thresholds are adjusted annually for
inflation. For tax year 2025, an eligible taxpayer’s
total income cannot exceed $75,000 in the case of
a single filer who is not a head of household filer;
$94,000 in the case of a head of household filer;
and $112,000 in the case of a joint filer.
To qualify for the credit, a taxpayer must be age 65
or older and must occupy the property as his or
her principal residence.

Massachusetts Credits

Several new credits are available. In addition, certain existing credits have been revised. These are
discussed in detail in TIR 24-16 and TIR 25-5.

New Climatetech Tax Incentive Program

The Climatetech Tax incentive program adds three
new credits for eligible expenses incurred by climatetech companies in developing and deploying
technologies aimed at mitigating or adapting to climate change. The credit takes effect for tax years
beginning on or after January 1, 2024. A climatetech company must be certified as such by the
Massachusetts clean energy technology center
(“MassCEC”).
The credits include the following.
• The Climatetech Incentive Jobs Credit is
awarded in an amount determined by MassCEC
(in consultation with the Department of Revenue)
to climatetech companies that create at least five
new jobs in the climatetech sector. The credit is
available to both corporate excise and personal
income tax filers.

• The Climatetech Capital Investment Credit is
awarded in an amount, determined by MassCEC,
up to fifty percent of a climatetech company’s investment in a climatetech facility. The credit is
available to both corporate excise and personal
income tax filers.
• The Climatetech Qualified Research Expenses
Credit is awarded at the discretion of MassCEC
in an amount equal to the sum of (i)10% of the
excess of qualified research expenses for the taxable year, over a base amount, and (ii)15% of the
basic research payments as determined for federal
tax purposes. The credit is available to corporate
excise filers only.
See TIR 25-5, Section I, for a more detailed discussion of the credits, including eligibility, refundability, carryover of unused credits, and limitations
on the credits.

New Live Theater Credit

The Live Theater Credit is available for costs incurred in presenting certain live theater productions in Massachusetts. The credit is equal to the
sum of (i) 35% of a theater company’s total instate payroll costs, (ii) 25% of its total in-state
production and performance expenditures, and
(iii) 25% of its total in-state transportation expenses. The Massachusetts Office of Business
Development awards the credit based on applications submitted by theater companies. The credit
is available to both corporate excise and personal
income tax filers. The credit is transferable but is
not refundable. Unused credit may be carried forward for five years. The credit is available for tax
years beginning on or after January 1, 2025, and
will expire on January 1, 2030. For additional information see TIR 25-5, Section II.

New Homeownership Credit

The Homeownership Credit is available to real
estate developers that build certain new housing
units. The credit is awarded in an amount determined by the Massachusetts Housing Finance
Agency based on applications submitted by developers. The credit is available to both corporate
excise and personal income tax filers. The credit is
transferable but not refundable. The credit is available for tax years beginning on or after January 1,
2025. For additional information, including eligibility rules, see TIR 24-16, Section II.

New Qualified Conversion Credit

The Qualified Conversion Credit is available to real
estate developers that convert existing commercial property to residential or mixed use. The credit
is awarded in an amount determined by the Executive Office of Housing and Livable Communities
based on applications submitted by developers.
The credit cannot exceed 10% of a developer’s
costs. The credit is available to both corporate excise and personal income tax filers. The credit is
transferable but not refundable. The credit is avail-

2025 Form 1 Instructions
able for tax years beginning on or after January
1, 2025, and expires on December 31, 2029. For
additional information see TIR 24-16, Section III.

Other Credits

Certain existing credits have been revised by recent legislation. These revisions expand the availability of the following credits for the tax years
indicated:
• Community Investment Credit (effective for tax
years beginning on or after January 1, 2025);
• Economic Development Incentive Program
Credit, (effective for credits awarded on or after
November 20, 2024);
• Historic Rehabilitation Credit, (effective for tax
years beginning on or after January 1, 2024);
• Life Sciences Tax Incentive Program (effective for tax years beginning on or after January
1, 2024);
• Research Credit (effective for research expenses incurred on or after November 20, 2024);
• Offshore Wind Investment Tax Credit (effective
retroactively for tax years beginning on or after
January 1, 2023); and
• Offshore Wind Jobs Tax Credit (effective retroactively for tax years beginning on or after January 1, 2023).
For additional information see TIR 24-16 Sections
IV and V and TIR 25-5 Sections V through VIII and
X through XIII.

Singles Sales Factor Apportionment

Effective for tax years beginning on or after January 1, 2025, personal income tax filers that are
required to apportion their income to Massachusetts must do so by using the sales factor only.
See TIR 24-4, Section IV, for a general discussion
of this change.

Federal Conformity

In general, a taxpayer’s Massachusetts gross income and many deductions are based on the
taxpayer’s federal gross income and deductions
under the Internal Revenue Code (IRC) as of a specific date. For tax years beginning on or after January 1, 2024, the Massachusetts personal income
tax generally conforms to the IRC as amended
and in effect on January 1, 2024. For further information regarding federal tax law changes see
TIR 24-14 and Working Draft TIR: Massachusetts
Conformity to Certain Provisions in Public Law
No. 119-21.
As a general rule, Massachusetts does not conform to personal income tax law changes to the
IRC made after January 1, 2024. However, certain
specific Massachusetts personal income tax provisions, as set forth in MGL ch. 62, § 1(c), automatically conform to the IRC currently in effect.
The provisions of the IRC that Massachusetts con-

4
forms to on a current basis include those provisions relating to:
• Roth IRAs;
• IRAs;
• The exclusion for gain on the sale of a principal
residence;
• Trade or business expenses;
• Travel expenses;
• Meals and entertainment expenses;
• The maximum deferral amount of government
employees’ deferred compensation plans;
• The deduction for health insurance costs of
self-employed taxpayers;
• Medical and dental expenses;
• Annuities;
• Health savings accounts;
• Employer-provided health insurance coverage;
• Amounts received by an employee under a
health and accident plan; and
• Contributions to qualified tuition programs.

Federal Tax Law Changes

Federal legislation passed in 2025 made a number of changes to the IRC. The Massachusetts personal income tax adopts only those changes that
relate to provisions that Massachusetts adopts on
a current basis (as listed above).
Note: Massachusetts does not adopt the federal
deduction for tip income (IRC § 224) or the federal
deduction for overtime pay (IRC § 225). For further information regarding federal tax law changes
see TIR 24-14 and Working Draft TIR: Massachusetts Conformity to Certain Provisions in Public
Law No. 119-21.

Privacy Act Notice
Under the authority of 42 USC § 405(c)(2)(C)(i),
and MGL ch 62C, § 5, DOR has the right to require
an individual to furnish his or her Social Security
number on a state tax return. This information is
mandatory. DOR uses Social Security numbers
for taxpayer identification to assist in processing and keeping track of returns and in determining and collecting the proper amount of tax due.
Under MGL ch 62C, § 40, the taxpayer’s identifying number is required to process a refund of
overpaid taxes. Although tax return information is
generally confidential pursuant to MGL ch 62C, §
21, DOR may disclose return information to other
taxing authorities and those entities specified in
MGL ch 62C, §§ 21, 22 or 23, and as otherwise
authorized by law.

Filing Your
Massachusetts
Return

If you were a resident of Massachusetts and your
gross income was more than $8,000 — whether
received from sources inside or outside of Massachusetts — you are required to file a Massachusetts income tax return. If your gross income was
$8,000 or less, you do not need to file a return.
If you did not live in Massachusetts but received
Massachusetts source income in excess of your
personal exemption amount multiplied by the ratio
of your Massachusetts income to your total income, you must file as a nonresident on the Nonresident/Part-Year Resident Income Tax Return,
Form 1-NR/PY.
If, during the taxable year, you either moved to
Massachusetts or terminated your status as a Massachusetts resident to establish residency outside
the state, and your gross income was more than
$8,000 — whether received from sources inside
or outside of Massachusetts — you must file as a
part-year resident on the Form 1-NR/PY.

What Is Gross Income?

Massachusetts gross income includes the following:
• All wages, salaries, tips, bonuses, fees and other
compensation;
• Taxable pensions and annuities;
• Pension income from another state or political
subdivision before any deduction;
• Taxable IRA/Keogh and Roth IRA distributions;
• Taxable alimony, see Schedule X instructions;
• Income from a business, trade, profession,
partnership, S corporation, trust or estate;
• Rental, royalty and REMIC income;
• Unemployment compensation;
• Taxable interest and dividends;
• Gambling winnings;
• Capital gains;
• Forgiveness of debt;
• Mortgage forgiveness;
• Taxable portion
fellowships; and

of

scholarships

and

• Any other income not specifically exempt.
• Massachusetts gross income also includes
the following, which are not subject to U.S.
income tax:
• Interest from obligations of states and their political subdivisions, other than Massachusetts and
its political subdivisions; and

2025 Form 1 Instructions
• Income earned by a resident from foreign
employment.
Massachusetts gross income does not include:
• Interest on obligations of the U.S. and U.S.
territories;
• Pension income received from a contributory
annuity, pension, endowment or retirement fund
of the U.S. government or the Commonwealth of
Massachusetts and its political subdivisions.
• Amounts received as U.S. Social Security, public welfare assistance, Veterans Administration
disability payments, G.I. Bill education payments,
certain worker’s compensation, gifts, accident or
life insurance payments, or certain payments received by Holocaust survivors; and
• Compensation earned by members of the armed
forces for service in a combat zone (excluded to
the same extent as under federal law).

Am I a Resident, Nonresident, or
Part-Year Resident?

There are four different categories of resident status under Massachusetts tax law:
• You are a full-year resident if your residence
(domicile) is in Massachusetts or if you maintain
a permanent place of abode in Massachusetts and
during the year spend more than 183 days, in the
aggregate, in the state. If you fit this description
you should file a Massachusetts Resident Income
Tax Return, Form 1.
• You are a nonresident if you were not a resident of Massachusetts but received Massachusetts income (e.g., from a job in Massachusetts).
You must report such income by filing a Massachusetts Form 1-NR/PY.
• You are a part-year resident if you either moved
into or moved out of Massachusetts during the
taxable year. In this case, you must reduce certain income, deductions and exemptions based on
the number of days you were a resident or on the
amount of your income that is subject to Massachusetts tax. Part-year residents must file a Massachusetts Form 1-NR/PY.
• You are both a nonresident and part-year resident if you meet the criteria above for both the
part-year resident and nonresident categories. If
filing as a nonresident and part-year resident, the
Schedule R/NR must be completed.

Are Military Personnel Required to File?

If you enlisted in the service as a Massachusetts
resident and have not established a new domicile
(residence) elsewhere (refer to military guidelines), and if your gross income is more than
$8,000, you are required to file a Massachusetts
resident income tax return. This applies even
though you may be stationed outside of Massa-

5
chusetts. The words residence and domicile are
used to denote the place where you have your
permanent home and to which, whenever you are
absent, you have the intention of returning. Nonresident military personnel stationed in Massachusetts may be subject to Massachusetts taxes
and should file Form 1-NR/PY if they earn income
from outside military sources.
Military Spouses. The Military Spouses Residency Relief Act (P.L. 111-97) prohibits a service-member’s spouse from either losing or acquiring a residence or domicile for purposes of
taxation because of being absent or present in any
U.S. tax jurisdiction solely to be with the servicemember in compliance with the servicemember’s
military orders. In general, for Massachusetts tax
purposes, the law affects only servicemembers
and their spouses who are domiciled in a state
other than Massachusetts.
As of January 5, 2023, the Veterans Auto and Education Improvement Act (P.L. 117–333) allows a
servicemember and the spouse of such servicemember to choose as their residence or domicile
for each taxable year of the marriage, regardless
of the date of the marriage, from any of the following: (a) the residence or domicile of the servicemember; (b) the residence or domicile of the
spouse; or (c) the permanent duty station of the
servicemember.

What Are the Rules for Filing a Joint
Return?

A joint Form 1 is generally not allowed unless both
spouses were Massachusetts residents for the
same portion of 2025.
If your spouse died during 2025, you may still
choose to file a joint return.
If you are legally married, you have the option of
filing either a joint return or a married filing separate return. Married taxpayers who file a joint
return are allowed to claim the following exemptions, deductions and credits which married taxpayers filing separate returns may not claim:
• A credit of $440 for a Child and Family Tax Credit
for a dependent member of household under age
13, a dependent who is over age 65 or disabled or
the taxpayer’s spouse, who is physically or mentally incapable of taking care of himself or herself;
• No Tax Status if joint Massachusetts AGI was
$16,400 or less plus $1,000 for each dependent;
• Limited Income Credit if joint Massachusetts
AGI is between $16,400 and $28,700 plus $1,750
for each dependent;
• Excess unused exemptions against interest
income (other than interest from Massachusetts
banks), dividends or capital gain income; and

• A senior circuit breaker tax credit allows senior
citizens meeting certain eligibility criteria to claim
a refundable credit on their state income taxes for
the real estate taxes paid on the Massachusetts
residential property they own or rent, and which
they occupy as their principal residence. The credit
is the amount by which the real estate tax payment
or 25% of the rent constituting real estate tax payments exceeds 10% of their total income, but not
more than $2,820. The credit is refundable to the
extent the credit exceeds the taxpayer’s tax liability.

How Do I File a Decedent’s Return?

A final income tax return must be filed for a taxpayer who died during the taxable year. This return should include income received until date of
death. It must be signed and filed by his/her personal representative, administrator or surviving
spouse for the portion of the year before the taxpayer’s death. Be sure to fill in oval 1 if the taxpayer
who was listed first on last year’s income tax return is deceased, or oval 2 if the taxpayer who was
listed second on last year’s income tax return is
deceased. Enter the date of death for the deceased
taxpayer. Also, enclose Form M-1310, Statement
of Claimant to Refund Due on Behalf of Deceased
Taxpayer, with the refund claimant’s name and Social Security number clearly printed.
A joint return may be filed by a surviving spouse.
In the case of the death of both spouses, a final
return must be filed by their legal representative.
Any income of $100 or more received for the decedent for the taxable year after the decedent’s death,
and for succeeding taxable years until the estate is
completed, must be reported each year on Massachusetts Form 2, Massachusetts Fiduciary Income Tax Return. Form 2 is available online at
mass.gov/dor.
If the decedent’s return shows a refund due, and
if the Probate Court has not appointed a legal representative and none is contemplated, a Massachusetts Form M-1310 must be enclosed with the
return so the refund check may be made payable
to the proper person.

Should I Make Estimated Tax Payments in
2026?

Every resident or nonresident who expects to pay
more than $400 in Massachusetts income tax on
income which is not covered by Massachusetts
withholding must pay Massachusetts estimated
taxes. Estimated tax payments can be made online
by using MassTaxConnect at mass.gov/masstaxconnect or by filing Massachusetts Form 1-ES.
See line 40 instructions and TIR 04-25 for more
information.

2025 Form 1 Instructions

When to File Your
Return

Your 2025 Massachusetts Form 1 is due on or before April 15, 2026. See "Filing Due Dates" above.

Automatic Extensions

All taxpayers filing personal income tax returns
are automatically granted a six-month extension
of time to file their tax return as long as at least
80% of the total amount of tax ultimately due on
or before the due date prescribed for payment of
the tax has been paid. See TIR 16-10.
Also, if you are making a payment of $5,000 or
more, you are required to submit your extension
payment electronically. Failure to do so will result
in a penalty. If you are making a payment of less
than $5,000, you also have the option of filing your
extension electronically. You do not need to file an
extension if no payment is due. If there is a tax
due with your extension, payment can be made
through Electronic Funds Withdrawal.
Form 1 Extension Worksheet
1. Enter amount from
Form 1, line 32  .  .  .  .  .  .  .  .  .  .  .  .  .  .
2. Enter the total of Form 1, lines 38
through 40 and 43
through 47  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
3. Amount due . Subtract line
2 from line 1, not less
than 0  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Note: Your extension will not be valid if you fail to
pay 80% of your total tax liability through withholding, estimated tax payments or with your extension .

Must I File on a Calendar Year Basis?

No. You may file on a fiscal year basis if you keep
your books and records on that fiscal year basis
and if you receive permission from the Commissioner of Revenue. If you file on a fiscal year basis,
you must file on or before the fifteenth day of the
fourth month after the end of your fiscal year.
Taxpayers filing on a fiscal year basis must complete and file Form 13, Notice of Designation of
Fiscal Year, available at mass.gov/dor or by calling (617) 887-6367 or toll-free in Massachusetts
(800) 392-6089.

Fiscal Year Filers

Fiscal year filers should file using the tax form for
the calendar year within which the short year falls.
If the short year spans more than one calendar
year, the filer should file using the tax form for the
calendar year in which the short year began. If the
current form is not available at the time the short
year filer must file, the filer should follow the rules
explained in TIR 11-12.

6
What If I am Unable to Pay?

If you are unable to pay the full amount of tax that
you owe, you should pay as much of your tax liability as possible with this return. You will receive a
bill from DOR for the remaining amount of tax due
plus accrued interest and penalty charges. If the
amount of that bill is less than $10,000 and you
still cannot pay it in full, you must apply formally
to DOR for a small payment agreement in order to
avoid collection activity. You can apply for a small
payment agreement by visiting MassTaxConnect
at mass.gov/masstaxconnect.
Note: Do not mail your request for a payment
agreement with your tax return. Requests can
be made once a bill is issued through DOR’s
MassTaxConnect application at mass.gov/dor or
by calling DOR at (617) 887-6367. Setting up a
small payment agreement will allow you to make
monthly payments within a set time period to satisfy your unpaid liability.

Name and Address

Print the full name, address, and Social Security
number of each person filing the return in the
spaces provided. Enter names as they appear on
your federal return.

Social Security Number(s)

Be sure to enter your Social Security number(s)
on your return. Also, enter your Social Security
number on pages 2 through 4 of Form 1 and on
page 2 of Schedule B or Schedule C, if filed. Failure
to show the correct Social Security number in the
space provided will delay the processing of your
return. If filing jointly, list your number and your
spouse’s number in the order they appear on your
federal return. Taxpayers filing their U.S. return
using an Individual Taxpayer Identification number (ITIN) should enter that ITIN as their Social
Security number in the appropriate space. Also,
be sure your employer has listed the correct Social Security number on your Form W-2. If you are
married, you must list your spouse’s name and
Social Security number even if you are filing a separate return, except as provided below. See line 1
instructions for married filing a separate return.
To apply for an SSN, you must complete Form
SS-5. Form SS-5 is available online at socialsecurity.gov, from your local Social Security Administration (SSA) office, or by calling the SSA at (800)
772-1213. It usually takes about two weeks to receive an SSN. If you are a nonresident or resident
alien and you do not have and are not eligible for
an SSN, you must apply for an ITIN. For details on
how to do so, see Form W-7 and its instructions.
Form W-7 is available online at irs.gov or by calling
the IRS at (800) 829-1040. It usually takes about
four to six weeks to receive an ITIN.
Note: You must wait until you receive an ITIN or
SSN to file your Massachusetts return.

Filing an Amended Return

Note: When filing an Amended return, the
Amended return oval must be filled in. For example, if you are filing an Amended return due to
a Federal amendment, both the Amended return
oval and the Federal amendment oval must be
filled in.

Filing an Amended Return

If you need to change a line item on your return, complete a new return with the corrected
information and fill in the Amended return oval.
Your amended return must include all schedules
filed with the original return even if there are no
changes to the schedules. Mail your amended return to the same address used for original returns.
Do not file Form ABT with your amended return.
An amended return can be filed to either increase
or decrease your tax. An amended return should
also be filed to correct a credit amount (such as
withholding) or to dispute a health care penalty.
Generally, an amended return must be filed within
three years of the date that your original return
was filed. Visit mass.gov/dor/amend for more information about filing an amended return.

Federal Changes

If your amended return includes changes you have
reported on an amended federal return filed with
the IRS for the same tax year or if you are amending due to changes as a result of a federal audit, fill
in the Federal amendment oval.
If your amended return does not report changes
that result from the filing of a federal amended return or from a federal audit (for example, if the
amended Massachusetts return is reporting a
rental deduction not claimed on the original return) fill in only the Amended return oval.

Other Jurisdiction Change

If your amended return includes changes resulting
from another state or jurisdiction audit or change,
fill in the Other Jurisdiction change oval and enter
date of change in the space provided.

Amended return due to IRS BBA
Partnership Audit

If your amended return includes changes made
due to an IRS BBA Audit, fill in the Amended return due to IRS BBA Partnership Audit oval.

Consent to Extend the Time to Act on an
Amended Return treated as Abatement
Application

In certain instances, an amended return showing a reduction of tax may be treated by DOR as
an abatement application. Under such circumstances, by filing an amended return, you are giving your consent for the Commissioner of Revenue to act upon the abatement application after six
months from the date of filing. See TIR 16-11. You
may withdraw such consent at any time by con-

2025 Form 1 Instructions
tacting the DOR in writing. If consent is withdrawn,
any requested reduction in tax will be deemed denied either at the expiration of six months from
the date of filing or the date consent is withdrawn,
whichever is later.

7
Form 1095 is a federal form and cannot be used
to report health care coverage in Massachusetts.

Voluntary Contribution to State Election
Campaign Fund

• Audit assessments

You, and your spouse if filing jointly, may voluntarily contribute $1 each to the State Election Campaign Fund. The purpose of this fund is to provide
limited public financing for campaigns of eligible
candidates for statewide and elective office. This
contribution will not change your tax or reduce
your refund.

• Responsible person determinations

Veterans Benefits

Filing an Application for Abatement

File an Application for Abatement only to dispute
one of the following:
• Penalties

For the fastest response time, file your dispute online at mass.gov/masstaxconnect. If you cannot
file online, use Form ABT.
Visit mass.gov/dor/amend for additional information about filing an amended return, or filing an
application for abatement.

Form 1 Frequent Errors

Not entering the information below correctly may
result in an item being adjusted or removed.
• Name Enter your name as shown on your government-issued ID with the first, last and middle
in the designated fields for each type.
• Line 2c You must fill in the bubble for each
spouse over 65 and enter a “1” or “2” in the Total
box accordingly.
• Line 3 If you are a Massachusetts state, city,
town, or county employee, you must report the State
wages, tips etc. amount from box 16 of Form W-2.
• Line 14 Enter the total qualified rent paid in
2025 in the box, then divide by 2.
• Line 38 You must submit all documents that
have Massachusetts withholding, including passthrough entity or K-1 withholding. You must also
include Schedule 62-WH.
• Lines 39 and 40 Be sure to differentiate any
overpayment from 2024 as a credit carry forward
on line 39 and do not list it as 2025 estimated tax
payment on line 40.
• Line 44 Schedule CB must be completed and
submitted with your return.
• Line 49 Excess Paid Family Leave withholding
(PFML) is not the amount shown on your Form
W-2. You must use the worksheet for line 49 to see
if you qualify and to calculate the excess amount.
Each taxpayer would need to have multiple W-2’s
and to have paid PFML greater than $810.06 to
qualify. Or, have paid on the gross amount of
self-employment income, not the net.
• Schedules B, C, D Entries should be positive
values unless there is a box to mark to indicate a
negative value.
• Schedule HC You must complete and submit
Schedule HC showing the subscriber number,
member ID or group number from insurance card.

Fill in the appropriate oval(s) for you, and/or your
spouse if married filing a joint return, if you are a
veteran who served in the Armed Forces of the
United States in active service as part of Operation
Enduring Freedom, Operation Iraqi Freedom, Operation Noble Eagle or Operation Sinai Peninsula
and were discharged under honorable conditions
and were domiciled for six months in Massachusetts immediately prior to entry into the Armed
Forces. DOR will then forward the name and address to the Department of Veterans’ Services and
the adjutant general of the Massachusetts National
Guard to verify eligibility for any benefits you may
be entitled to.

Deceased Taxpayer

If a taxpayer died during the taxable year, be sure
to fill in the appropriate oval and enter the date of
death. For further information, refer to the section
How Do I File a Decedent’s Return?

Under Age 18

If you are under age 18 as of January 1, 2026, be
sure to fill in the oval(s).

Name Change

If you legally changed your name since the last
time you filed a Massachusetts tax return, fill in the
oval. Enclose a copy of your Social Security card
or government-issued ID (i.e., driver’s license,
passport, etc.) showing your new name. Failure to
include this documentation could delay processing of your return.

Noncustodial Parent

Fill in the oval if you are a noncustodial parent. A
noncustodial parent is defined as a person who
has a minor child, but does not live with the child.
Note: If you are the biological parent of a child, but
your parental rights have been terminated, you are
not the noncustodial parent of that child.

Custodial Parent

Fill in the Custodial parent who has released
claim to exemption for child(ren) oval if you
are claiming the head of household filing status and you have released your claim to one or
more dependent exemptions on U.S. Form 8332,
or participated in a decree or agreement to allow
the noncustodial parent to claim a dependency
exemption.

Schedule TDS. Inconsistent Filing
Position Penalty

Fill in the oval and enclose Schedule TDS, Taxpayer Disclosure Statement, if you are disclosing
any inconsistent filing positions. Schedule TDS is
available on our website at mass.gov/dor. The inconsistent filing position penalty (see TIR 06-5,
Section IV) applies to taxpayers that take an inconsistent position in reporting income. These taxpayers must “disclose the inconsistency” when filing
their Massachusetts return. If such inconsistency
is not disclosed, the taxpayer will be subject to a
penalty equal to the amount of tax attributable to
the inconsistency. This penalty is in addition to any
other penalties that may apply.
A taxpayer is deemed to have taken an “inconsistent position” when the taxpayer pays less tax in
Massachusetts based upon an interpretation of
Massachusetts law that differs from the position
taken by the taxpayer in another state where the
taxpayer files a return and the governing law in that
other state “is the same in all material respects” as
the Massachusetts law. The Commissioner may
waive or abate the penalty if the inconsistency or
failure to disclose was attributable to reasonable
cause and not willful neglect.

Schedule FCI. Foreign Corporation Income

Fill in the oval and enclose Schedule FCI (Foreign
Corporation Income) if you are required to complete and file Schedule FCI with your return. All taxpayers with foreign corporation income (including
Global Intangible Low-Taxed Income (GILTI)) must
complete Schedule FCI. GILTI should be included
in dividend income on Schedule B, Part 1, line 3.
Detailed instructions for completing Schedule FCI
are available on DOR’s website. See Schedule FCI
and Instructions.

Digital Assets

Fill in the oval if at any time during 2025 you received (as a reward, award, or payment for property or services) a digital asset, or sold, exchanged,
or otherwise disposed of a digital asset (or a finacial interest in a digital asset) or if you received a
Form 1099-DA. Digital assets include non-fungible
tokens (NFTs) and virtual currencies, such as cryptocurrencies and stablecoins.
Note: Lines without specific instructions are considered to be self-explanatory.

a. Total Federal Income

Enter your total federal income (from U.S. Form
1040, line 9). If married filing separately and living in the same household for the last 6 months
of 2025, each spouse must combine their income
figures from their separate U.S. returns when
completing this section, unless you did not live
with your spouse on 12/31/2025 and were legally
separated under a written separation agreement or
a decree of separate maintenance.

2025 Form 1 Instructions

8

Do not combine your income figures if you are
a victim of domestic abuse and living apart from
your spouse at the time you file your return.

• You were legally separated under a final judgment of the probate court.

If you did not have a requirement to file a U.S. return, you must enter 0 in this section.

• You have obtained a judgment of divorce which
has not yet become final;

Note: Failure to enter this information will delay
the processing of your return.

b. Federal Adjusted Gross Income

Note: You are not single if:

• You have a temporary support order; or
• You and your spouse simply choose to live apart.

Enter your federal adjusted gross income (from
U.S. Form 1040, line 11a). If married filing separately and living in the same household for the
last 6 months of 2025, each spouse must combine their income figures from their separate U.S.
returns when completing this section, unless you
did not live with your spouse on 12/31/2025 and
were legally separated under a written separation
agreement or a decree of separate maintenance.

Married Filing Joint Return

Do not combine your income figures if you are
a victim of domestic abuse and living apart from
your spouse at the time you file your return.

Married Filing Separate Return

If you did not have a requirement to file a U.S. return, you must enter 0 in this section.
Note: Failure to enter this information will delay
the processing of your return.

Line 1. Filing Status

Note: More than one filing status may apply to you.
If so, you may wish to figure your taxes based upon
more than one filing status to see which status is to
your benefit. Be sure to select only one filing status.
Fill in the if not using same filing status on the
federal return oval if you and your spouse filed a
joint federal return but are not filing a joint Massachusetts return. For tax years beginning on or after
January 1, 2024, a consistent filing requirement
exists which requires married couples to file a joint
Massachusetts return in any year in which they file
a joint federal return. If one of the spouses does
not have a Massachusetts filing requirement because their Massachusetts gross income does not
exceed $8,000, an exemption applies where they
may choose the married filing separate return status. To claim this exemption, fill in the "if joint filing
exemption for spouses with Massachusetts gross
income under $8,000" oval. Generally, a joint Form
1 is not allowed unless both spouses were Massachusetts residents for the same portion of 2025.
See TIR 24-4 for additional information.

Fill in the Married filing joint return oval if you
were legally married as of December 31, 2025.
Both spouses are responsible for the accuracy of
all information entered on a joint return and both
must sign. A joint return is allowed even if only one
spouse had income or if one spouse died during
2025. For further information, refer to the section
“What Are the Rules for Filing a Joint Return?”
Fill in the Married filing separate return oval if you
were legally married as of December 31, 2025, and
if you and your spouse are not filing a joint return.
Be sure to enter your spouse’s name and Social
Security number in the space provided.
If your spouse is a nonresident alien and does not
have and is not required to have a Social Security
number (SSN) or Individual Taxpayer Identification Number (ITIN), fill in the NRA oval.
Note: Only fill in the NRA oval if, on your U.S. 1040,
you entered NRA in the space below the filing status checkboxes to indicate that your spouse is a
nonresident alien who does not have and is not required to have a SSN or ITIN.

Head of Household

Fill in the Head of household oval if you qualify to
file this status federally. This status is for unmarried people who paid over half the cost of keeping
up a home for a qualifying person, such as a child
who lived with you or your dependent parent. Be
sure to include such qualifying person on Schedule DI, Dependent Information. Certain married
people who lived apart from their spouse for the
last six months of 2025 and who meet all of the
other federal requirements may also be able to use
this status. See IRS Publication 501, Dependents,
Standard Deduction, and Filing Information, for
more information.

Whole Dollar Method Required

• Add amounts to the penny, and then round to the
whole dollar for entry on the form. Either method is
acceptable as long as one method is used consistently throughout the return.

Line 2. Exemptions

Line 2a. Personal Exemptions

Each taxpayer is entitled to claim a personal exemption. The amount of your personal exemption
depends on your filing status in line 1.
• If you are single or married filing a separate return, enter $4,400 in line 2a.
• If filing as head of household, enter $6,800
in line 2a.
• If married filing a joint return, enter $8,800
in line 2a.

Line 2b. Number of Dependents

You may claim a $1,000 exemption for each of
your dependents if you claimed them on your U.S.
return. Enter in the box in item b the number of dependents you listed on U.S. Form 1040. Do not include yourself or your spouse. Then, multiply that
total by $1,000 and enter the total amount in line
2b. Be sure to fill out Schedule DI, Dependent Information, if you are claiming a dependent exemption(s). Failure to do so will delay the processing
of your return.
Note: Only one person (or married couple filing
jointly) may claim the dependent exemption for
any one child or other dependent.

Line 2c. Age 65 or Over Before 2026

You are allowed an additional $700 exemption if
you were age 65 or over before January 1, 2026. If
your spouse was age 65 or over and you are filing
a joint return, you may also claim a $700 exemption for your spouse. Fill in the appropriate oval(s)
and enter the total number of persons age 65 or
over in the small box. Multiply that total by $700
and enter the total in line 2c.

Line 2d. Blindness Exemption

You are allowed an additional $2,200 exemption if
you are legally blind. If your spouse is also legally
blind and you are filing a joint return, you may also
claim a $2,200 exemption for your spouse. Fill in
the appropriate oval(s) and enter the total number
of blindness exemptions in the small box. Multiply
that total by $2,200 and enter the total in line 2d.

Legal Definition of Blindness

• You were unmarried;

DOR requires that the whole dollar method be used
for entries made on forms or schedules. For example, amounts between $1.00 and $1.49 should be
entered as $1.00 and amounts between $1.50 and
$2.00 should be entered as $2.00. However, calculations on worksheets used to reach amounts shown
on the return may be made in one of two ways:

• You were a widow or widower whose spouse
died before 2025; or

• Round amounts before adding them up and enter
the resulting total on the form; or

You may claim an exemption for medical and dental expenses paid during 2025 only if you itemized
these expenses on your U.S. Form 1040, Sched-

Single

Fill in the Single oval if you were single as of December 31, 2025. This status applies to you if at
the close of the taxable year you fit into any of the
following categories:

You are legally blind and qualify for the blindness
exemption if your visual acuity with correction is
20/200 or less in the better eye, or if your peripheral field of vision has been contracted to a 10-degree radius or less, regardless of visual acuity.

Line 2e. Medical/Dental Expenses

2025 Form 1 Instructions

9

ule A. If you are married filing a joint U.S. Form
1040, you must file a joint Massachusetts Form
1 to claim this exemption. Enter in line 2e the
amount reported on your U.S. Form 1040, Schedule A, line 4.

Medicaid Waiver Payments

Line 2f. Adoption Agency Fee

Line 4. Taxable Pensions and Annuities

If you paid adoption fees to a licensed adoption
agency during 2025, you are eligible for an exemption of the total amount of the fees paid during the
year. Fees paid during 2025 to an agency licensed
to place children for adoption on account of the
adoption process of a minor child regardless of
whether an adoption actually took place during
2025 should also be included for this exemption.
Enter this amount in line 2f.

5.0% Income

Note: DOR and the IRS maintain an extensive
exchange program, routinely sharing computer
tapes and audit results. Discrepancies between income, deductions, and schedules reported federally and on this return, except those allowed under
state law, will be identified and may result in a state
audit or further investigation.

Line 3. Wages, Salaries, Tips and Other
Employee Compensation

Report in line 3 total state wages and allocated tips
from Form(s) W-2. Generally, your total wages and
allocated tips will be the same amount reported on
your U.S. Form 1040, line 1z.
Note: Massachusetts does not adopt the federal
deduction for tip income (IRC § 224) or the federal
deduction for overtime pay (IRC § 225).
The following are instances that require an adjustment to these amounts:

Massachusetts Residents Working in a
Foreign Country

Income earned by a Massachusetts resident in a
foreign country is subject to taxation in Massachusetts. If you excluded part or all of the compensation earned in a foreign country on your U.S. return (under IRC § 911), you must include any such
amount in line 3 for Massachusetts tax purposes.

State or Local Employees Contributing to
Pension Plans

If you are a Massachusetts state, city, town or
county employee and contributed to your pension
plan, enter in line 3 the Massachusetts W-2 state
wage amount. This is generally box 16 of Form
W-2. This amount will be higher than the U.S.
amount because your pension contributions are
excluded from your income for U.S. tax purposes.
Contributions up to $2,000 per taxpayer may be
deducted in lines 11a and/or 11b.

To the extent included in Form 1 line 3, enter in
Schedule Y, line 9a the amount of Medicaid waiver
payments reported on U.S. Schedule 1, line 8s to
be excluded from Massachusetts wages.
Income from most private pensions or annuity
plans is taxable in Massachusetts. Certain government pensions, however, are exempt under
Massachusetts law. In general, exempt pensions
include contributory pensions from the U.S. Government or the Commonwealth of Massachusetts
and its political subdivisions, and noncontributory
military pensions. The following section describes
some specific pensions which are exempt. If your
pension is exempt, enter 0 in line 4 and note the
source on the dotted line to the left.

• Massachusetts state court judges who were
appointed on or after January 2, 1975 are participants in the Massachusetts contributory retirement system and their pensions are nontaxable.
State court judges who were appointed prior to
January 2, 1975 receive taxable noncontributory pensions.
If you retired under MGL ch 32, §§ 56–60 and are
a veteran who began Massachusetts state service
prior to July 1, 1939, all or part of your pension
income may be subject to tax. If you elected to
receive your proceeds from contributions in one
lump-sum distribution, your original contributions
to the retirement system are not taxable. Noncontributory pension income received after a lumpsum distribution is fully taxable and should be reported in line 4.

If your pension is not exempt, you should generally enter in line 4 the taxable amount reported on
your U.S. Form 1040, line 5b. In some cases, however, Massachusetts law requires an adjustment
to the federal amount. Distributions from annuity,
stock bonus, pension, profit-sharing or deferred
payment plans or contracts described in §§ 403(b)
and 404 of the IRC must be adjusted to account
for your contributions that have been previously
taxed. Subtract from such income (as reported on
your U.S. Form 1040, line 5a) the amount of your
contributions which was previously taxed by Massachusetts until the total of your taxed contributions is received. If your pension falls into this category, enter the adjusted amount in line 4. If you
are receiving distributions from an IRA or Keogh
plan, do not report the income here; instead, see
the instructions for Schedule X, line 2.

How do I report lump-sum distributions?

Note: Massachusetts does not tax Social Security
income; therefore, you should not report such income on Massachusetts Form 1.

Rollover from a traditional IRA to a Roth IRA.
Taxpayers are allowed to make partial or complete
rollovers from existing IRAs to Roth IRAs. Any taxable portion of these rollovers included in federal
gross income is also included in Massachusetts
gross income, except for amounts previously subject to Massachusetts personal income tax. See
Schedule X, line 2 instructions for further details.

What pensions are exempt?

• Pension income received from a contributory
annuity, pension, endowment or retirement fund
of the U.S. Government or the Commonwealth of
Massachusetts and its political subdivisions.
• Pension income from other states or their political subdivisions which do not tax such income
from Massachusetts, or its political subdivisions
must be reported in line 4. However, this income
may be eligible for a deduction on Schedule Y line
13. Refer to the instructions for Schedule Y line 13
to determine eligibility for this deduction.
• Noncontributory pension income or survivorship benefits received from the U.S. uniformed
services (Army, Navy, Marine Corps, Air Force,
Coast Guard, commissioned corps of the Public
Health Service and National Oceanic and Atmospheric Administration) are exempt from taxation
in Massachusetts.

If you were an employee of the U.S., Massachusetts or one of its political subdivisions and left
public employment prior to retirement, you are
not required to report as income the lump-sum
distribution of your previously-taxed pension
contributions.
Lump-sum distributions of qualified employee
benefit plans in excess of the employee’s contributions which were previously subject to Massachusetts tax (or not previously excluded from Massachusetts tax) must be reported in line 4. Generally,
qualified rollovers are not taxable in Massachusetts to the extent they are not taxable on your
U.S. return. Lump-sum distributions related to
IRA/Keogh and Roth IRA distributions should be
reported in Form 1, line 9, “Other Income (from
Schedule X).”

Line 5. Interest from Massachusetts Banks

Enter in line 5 the total amount of interest received
or credited to deposit accounts (term and time
deposits, including certificates of deposit, savings
accounts, savings shares, and NOW accounts) in
Massachusetts banks.
Do not subtract interest forfeited or penalties charged
to you for early savings withdrawal. You will be allowed to deduct these amounts on Schedule Y, line 2.
All other interest, unless exempt, should be entered
on Massachusetts Schedule B. Interest on an IRA/
Keogh is not taxable until distributed.

2025 Form 1 Instructions
Lines 6, 7 and 10

If showing a loss in lines 6, 7 or 10, be sure to
mark over the X in the box to the left. Do not use
parentheses or negative signs to indicate losses.

Line 6a. Business/Profession Income or
Loss

Enter in line 6a the amount of income or loss from
a business or profession from Massachusetts
Schedule C, line 37. You must enclose Massachusetts Schedule C with this return. U.S. Schedule C
is no longer allowed as a substitute for the Massachusetts Schedule C.
Note: Following the Code Update, you may not deduct an excess business loss (EBL) for tax year
2025. For federal purposes, your EBL, if any, is determined using U.S. Form 461 and is added back
to your income on U.S. Form 1040, Schedule 1,
line 8p. You must also add back EBL to Massachusetts income. To do so, use Massachusetts Schedule X, line 6. See instructions for that line for more
information.

Line 6b. Farm Income or Loss

If you operate a farm as an individual or cooperative, enter in line 6b the amount of income or
loss from operating a farm from U.S. Schedule F,
Profit or Loss from Farming, line 34. Enclose a
copy of U.S. Schedule F. Complete a pro forma
U.S. Schedule F to report Massachusetts differences, such as bonus depreciation.

Line 7. Rental, Royalty, REMIC, Partnership, S Corporation, Trust Income or Loss

Taxpayers with income or loss reported on a
Schedule E must file his or her tax return using
computer-generated forms produced by thirdparty software. The tax return may be generated
by the taxpayer or by a tax professional. The taxpayer is encouraged, but not required, to submit
the return electronically. Paper forms produced
using the third-party software product will contain a two-dimensional (2D) bar code and will also
be accepted. If the taxpayer hires an income tax
preparer to complete the taxpayer’s taxes, the preparer must follow the Commissioner’s electronic
filing rules. See TIRs 08-22 and 16-9 for more
information.
If you do not have access to a software package
when filing your 2025 income tax return, you may
file your Schedule(s) E on paper. Visit our website
at mass.gov/dor to download a paper copy of the
2025 Schedule(s) E, E-1, E-2, E-3 (and instructions) to file with your income tax return.

Line 8a. Unemployment Compensation

If you received unemployment compensation,
enter in line 8a the amount from U.S. Form 1040,
Schedule 1, line 7. If you elected voluntary withholding of Massachusetts state income taxes on
your unemployment compensation, be sure to in-

10
clude the amount of Massachusetts state income
tax withheld, as reported on Form 1099-G, on
Form 1, line 38b.
Note: DOR routinely matches the amounts in line
8a with files from the Division of Unemployment
Assistance.

Line 8b. Massachusetts State Lottery
Winnings

Enter in line 8b net winnings (total winnings minus
cost of winning ticket(s)) from the Massachusetts
state lottery. Do not enter less than 0. You may
only deduct the price of your winning ticket. Lottery losses claimed as itemized deductions on U.S.
Form 1040, Schedule A are not allowed on your
Massachusetts return.
Note: DOR routinely matches the amounts in line
8b with files from the Lottery Commission.

Line 9. Other Income (from Schedule X)
Taxable Alimony Received, Taxable
IRA/Keogh and Roth IRA Conversion
Distributions, Other Gambling Winnings,
Fees and Other 5.0% Income, PFML
Taxable Distributions and Excess Business
Loss Adjustment
“Other 5.0% income” includes the items listed
above and must be included on Schedule X.
Enter the total from Schedule X, line 7. Not less
than 0. Be sure to enclose Schedule X with your
return. Failure to enclose this schedule will delay
the processing of your return.

Deductions
Lines 11 through 15

Massachusetts allowable deductions differ from
itemized deductions on Schedule A of U.S. Form
1040. You may claim only the deductions specified on Massachusetts Form 1, lines 11 through
14 and Schedule Y.
You are not allowed to deduct amounts unless
they are directly related to income that is subject to
taxation and reported on Massachusetts Form 1.

Line 11. Amount Paid to Social Security
and Medicare (FICA), Railroad, U.S. or
Massachusetts Retirement Systems

If you have paid into any of the retirement systems
listed above during 2025, you may deduct those
contributions, up to a maximum of $2,000.
Enter in lines 11a and 11b the amount you, and
your spouse if filing jointly, paid to Social Security (FICA), Medicare or Railroad Retirement and
the U.S. or Massachusetts retirement systems
during 2025 as shown on your Form W-2, but not
more than $2,000 each. Payment amounts may
not be combined or transferred from one spouse
to the other. Be sure to add any amount of Medicare tax withheld as shown on Form W-2 and any

amount of self-employment tax as reported on
your U.S. Form 1040 to the amount of Social Security tax withheld, the total not to exceed $2,000
per person.
Note: Medicare premiums deducted from your
Social Security or retirement payments are not
deductible.
Payments to an IRA, Keogh, Simplified Employee
Pension Plan (SEP), or Savings Incentive Match
Plan for Employees (SIMPLE) Account are not deductible for Massachusetts income tax purposes.

Line 14. Rental Deduction

You may be entitled to a rental deduction equal to
one-half (50%) of the rent you paid during 2025
(up to a maximum of $4,000 per return) for your
principal residence in Massachusetts. Enter the
total amount of qualified rent paid by you during
2025 in line 14a. Divide line 14a by 2 and enter the
result, or $4,000 ($2,000 if married filing a separate return), whichever is smaller, in line 14.
Note: This deduction amount does not apply to
your U.S. tax return.

What Qualifies for the Rental Deduction?

The deduction must be for rent you paid to a landlord for the rental or lease of your principal residence in Massachusetts. If two or more persons
jointly rent a unit, each occupant using it as his/
her principal residence is entitled to a deduction
based on the amount of rent that each person paid.
If the rent is paid by a third party (such as a parent)
who maintains a principal residence elsewhere, no
50% rental deduction is allowed for either party.
A principal residence does not include any residence for vacation, an apartment for a person on
a temporary assignment or a student or faculty
member who has a principal residence elsewhere.
It also does not include any apartment or house
in Massachusetts of a nonresident who has a residence in another state or country. Payment for
occupying a hotel, motel or rooming house is not
considered rent unless a rental agreement exists.
Nor are payments by a tenant-stockholder of a cooperative housing corporation to the corporation
and payments by an owner of a condominium unit
to the condominium association considered rent.
All separately stated charges such as utilities, furnishings or parking cannot be included in rent for
purposes of this deduction. Also, rent does not
include any advance payments (such as security
deposit, last month’s rent, etc.) until actually applied as rent.

How Do I Calculate My Rental Deduction If
I Am Married Filing Separately?

If married taxpayers file separate returns, they are
each entitled to a rental deduction equal to 50%
of the rent each pays, not to exceed $2,000 per
return. However, a married couple filing sepa-

2025 Form 1 Instructions
rately may allocate the rent deduction differently,
provided the amount taken by each spouse does
not exceed 50% of the rent actually paid by that
spouse, and provided their combined rental deductions do not exceed $4,000. If the allocation
results in one spouse claiming a deduction in excess of $2,000, that spouse must enclose with his/
her return a statement signed by the other spouse
indicating consent to the allocation. The statement
must contain the name, address and Social Security number of the consenting spouse and the
amount of rental deduction taken by that spouse.

Line 15. Other Deductions (from
Schedule Y)
Enter the total from Schedule Y, line 19. Be sure to
enclose Schedule Y with your return. Failure to do
so will delay the processing of your return.

Line 17. 5.0% Income After Deductions

Subtract line 16 from line 10. Enter the result in
line 17. If line 16 exceeds line 10, enter 0 in line 17.

Line 19. 5.0% Income After Exemptions

Subtract line 18 from line 17. If line 18 exceeds line
17, enter 0 in line 19.
If line 18 exceeds line 17 and you received interest income (other than interest from Massachusetts banks), dividends or capital gain income,
complete the Schedule B, Line 36 and Schedule
D, Line 20 Worksheet, if applicable. All others proceed to line 20.
Schedule B, Line 36 and Schedule D, Line 20
Worksheet. Excess Exemptions from Interest and
Dividend Income, 8.5% and 12% Income and
Long-Term Capital Gain Income (Only if Single,
Head of Household, or Married Filing Jointly)
If your total exemptions in Form 1, line 18 are more than
the amount of your 5 .0% income after deductions in
Form 1, line 17, the excess may be applied against any
interest and dividend income and income taxed at 8 .5%
or 12% . Any remaining excess amount may then be applied against any long-term capital gain income . Complete this worksheet only if Form 1, line 17 is less than
Form 1, line 18 and you received interest income (other
than interest from Massachusetts banks), dividends or
capital gain income to determine if you qualify for the
excess exemption . Enter all losses as 0 .
1. Enter amount from
Schedule B, line 35 . Not
less than 0  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
2. Enter amount from
Form 1, line 18  .  .  .  .  .  .  .  .  .  .  .  .  .  .
3. Enter amount from
Form 1, line 17  .  .  .  .  .  .  .  .  .  .  .  .  .  .
4. Subtract line 3 from line 2 . If 0
or less, you do not qualify for
this exemption . Omit remainder
of worksheet  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

11
5. Excess exemptions applied against interest and
dividend income and 8 .5% or 12% income . If line 1
is larger than line 4, enter line 4 here and in Schedule B, line 36 . If line 4 is equal to or larger
than line 1, enter line 1 here and in Schedule
B, line 36 . Complete lines 6
through 8  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
6. Subtract line 5 from line 4 .
If 0, omit remainder of
worksheet  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
7. Enter Schedule D, line
19 . Not less than 0  .  .  .  .  .  .  .  .  .  .  .
8. Excess exemptions applied against long-term
capital gain income . If line 7 is larger than
line 6, enter line 6 here and in Schedule D,
line 20 . If line 6 is equal to or larger
than line 7, enter line 7 here and
in Schedule D, line 20  .  .  .  .  .  .  .  .

Line 20. Interest and Dividend Income

If you have any interest income other than interest
from deposits in banks located in Massachusetts,
dividend income, certain capital gains or losses,
or any adjustments to interest income (other than
interest from Massachusetts banks), you must
complete Schedule B. Be sure to enclose Massachusetts Schedule B. To determine if you need to
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