Massachusetts Form 1-NR/PY Instructions

Form 1-NR/PY Instructions 
Form 1-NR Instructions
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Department of Revenue  | Commonwealth of Massachusetts

2025
Massachusetts
Nonresident or
Part-Year Resident
Income Tax
Turn the page for information on e-filing your return this year.

FORM 1-NR/PY

2025 Form 1-NR/PY Instructions	

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

1
2
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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.

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-NR/PY Instructions	

Who Must File

3
tion of income received while a part-year resident.
Schedule R/NR is included in this booklet.

You must file Massachusetts Form 1-NR/PY, Nonresident/Part-Year Resident Income Tax Return if
you were not a resident of Massachusetts for any
part of the year and the lesser of either:

5.	Fill in the Nonresident composite return oval
if this return is being filed as a composite return
on behalf of nonresident professional athletic team
members. See the instructions on page 9.

1. Your Massachusetts source income was more
than $8,000; or

For more information on Massachusetts source
income, refer to the section Filing Your Massachusetts Return.

2. Your Massachusetts source income was more
than your personal exemption amount multiplied
by the ratio of your Massachusetts income to your
total income.
You also must file Form 1-NR/PY if you were a
resident of Massachusetts for part of the year and
you had more than $8,000 in gross income during
that time, whether received from sources inside or
outside of Massachusetts.
To see whether you are a full-year resident, nonresident, part-year resident, or a nonresident and
part-year resident, determine which category applies to you:
1. You are a full-year resident if your residensce
(domicile) was in Massachusetts for the entire taxable year or if you maintained a permanent place of
abode in Massachusetts and during the year spent
more than 183 days, in the aggregate, in the state.
If you fit this description, you should file Form 1,
Massachusetts Resident Income Tax Return.
2.	You are a nonresident if you are not a resident
of Massachusetts as defined above but received
Massachusetts source income (e.g. from a job in
Massachusetts). Fill in the Nonresident oval at the
top of the form if this category applies to you. A
nonresident who is filing Form 1-NR/PY to report
income not included on a Nonresident Composite
Return filed on their behalf also should fill in the
Nonresident oval.
3.	You are a part-year resident if, during the taxable year, you moved to Massachusetts or established a permanent place of abode here and
became a resident, or you terminated your status
as a Massachusetts resident to establish a residence outside the state. Fill in the Part-year resident oval at the top of the form if this category
applies to you.
4.	If you were a Massachusetts resident for part
of the 2025 tax year, and while you were not a
resident of Massachusetts you received Massachusetts source income (e.g., from a job in
Massachusetts), file as both a nonresident and
part-year resident. Fill in the Filing as both a nonresident and part-year resident oval below the
address section of the form if this category applies to you. Complete Schedule R/NR, Resident/
Nonresident Worksheet, to calculate the portion of
income received while a nonresident and the por-

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-NR/PY 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
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 res­
idential property located in Massachusetts are al­
lowed 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 tax­
payer’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 as­
sessed 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 maxi­
mum 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 cli-

2025 Form 1-NR/PY Instructions	

4

mate 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
(“MassCETC”).

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.

The credits include the following.

New Qualified Conversion Credit

•	 The Climatetech Incentive Jobs Credit is
awarded in an amount determined by MassCETC
(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 MassCETC,
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 MassCETC
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 in­
curred in presenting certain live theater produc­
tions 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 ex­
penses. The Massachusetts Office of Business
Development awards the credit based on applica­
tions 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

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 available 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:

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 conforms to on a current basis include those provisions relating to:
•	 Roth IRAs;
•	 IRAs;

•	 Community Investment Credit (effective for tax
years beginning on or after January 1, 2025);

•	 The exclusion for gain on the sale of a principal
residence;

•	 Economic Development Incentive Program
Credit, (effective for credits awarded on or after
November 20, 2024);

•	 Trade or business expenses;

•	 Historic Rehabilitation Credit, (effective for tax
years beginning on or after January 1, 2024);

•	 Meals and entertainment expenses;

•	 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

•	 Travel 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;

•	 Offshore Wind Jobs Tax Credit (effective retroactively for tax years beginning on or after January 1, 2023).

•	 Amounts received by an employee under a
health and accident plan; and

For additional information see TIR 24-16 Sections
IV and V and TIR 25-5 Sections V through VIII and
X through XIII.

Federal Tax Law Changes

Single 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.

•	 Contributions to qualified tuition programs.
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.

2025 Form 1-NR/PY Instructions	

5

Privacy Act Notice

filing as a nonresident and part-year resident, the
Schedule R/NR must be completed.

Under the authority of 42 USC § 405(c)(2)(C)(i),
and MGL ch 62C, § 5, the 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.

What Is Massachusetts Source Income for
Nonresidents?

Filing Your
Massachusetts
Return

As a nonresident, you must file Form 1-NR/PY if
your Massachusetts source income for 2025 exceeded the smaller of your apportioned personal
exemption, or $8,000.

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

The term “Massachusetts source income” is used
throughout this booklet to describe the types of
income which are taxable to a nonresident.
A nonresident is only subject to tax on items of in­
come derived from or effectively connected with:
•	 Any trade, business, or employment carried on
in Massachusetts (see the following section);
•	 Participation in any lottery or wagering transaction in Massachusetts; or
•	 Ownership of any interest in real or tangible per­
sonal property located in Massachusetts.
•	 Some examples of the types of income taxable
to a nonresident:
•	 All wages, salaries, tips, bonuses, fees and
other compensation which relate to activities carried on in Massachusetts, regardless of where or
when the compensation is paid;
•	 Unemployment compensation related to previous Massachusetts employment;
•	 Profit from a business, trade, profession, partnership, or S corporation conducted in Massachusetts;
•	 Rents and royalties from real and tangible personal property located in Massachusetts or from
other business activities in Massachusetts;

There are four different categories of resident status under Massachusetts tax law:

•	 Gain from the sale of real or tangible personal
property located in Massachusetts;

•	 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.

•	 Interest and dividends, only if derived from or
connected with Massachusetts business activity,
or the ownership of Massachusetts real estate or
tangible personal property; and

•	 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

•	 The definition of Massachusetts source income
now includes gain from the sale of a business or
an interest in a busi­ness, separation, sick or vacation pay, deferred compen­sation, income from
covenants not to compete, and nonqualified pension income that federal law allows states to tax.
Income from Massachusetts sources which is not
taxed to residents is not taxed to nonresidents,
e.g., interest on debt obligations of the U.S. and
amounts received as Social Security and certain
worker’s compensation.
In general, the same exemptions and deductions
allowed to residents are available to nonresidents
to determine taxable income. These items are allowed, however, only to the extent they relate to,
or are allocable to, Massachusetts source income.

Am I Carrying on a Trade, Business or
Employment in Massachusetts as a
Nonresident?

A nonresident generally does not have a trade,
business or employment carried on in Massachusetts if his/her presence for business in Massachusetts is casual, isolated and inconsequential.
A nonresident’s presence for business will be
considered casual, isolated and inconsequential
if the nonresident’s business presence in Massachusetts is an­cillary to the nonresident’s primary
busi­ness or employment duties performed at a
base of operations outside Massachusetts — for
example, an occasional presence in Massachusetts for management functions, and other similar
activities which are secondary to the individual’s
primary out-of-state duties.

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 Massachusetts. The
terms “residence” and “domicile” are used to denote that 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 servicemember’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.
Note: Massachusetts excludes from gross income
compensation earned by members of the armed
forces for service in a combat zone, to the same
extent it is excluded under federal law.

2025 Form 1-NR/PY Instructions	

6

No guidance is intended on the tax treatment of
such pay under the laws of other states. Generally, when income is taxable in two jurisdictions,
a credit for taxes paid to the other jurisdiction is
allowed on the taxpayer’s return in the state of his/
her residence.

•	 Income earned by a resident from foreign
­employment.

•	 Schedule Y, line 6, Archer medical savings account (MSA) deduction;

Massachusetts gross income does not include:

•	 Schedule Y, line 8, health savings account
deduction;

How Do I Determine My Residence
(Domicile)?

•	 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.

Your residence is determined by all the facts and
circumstances in your case. If you have two or
more residences, your residence is the one you regard as your true home or principal residence. You
cannot choose to make your home in one place
for the general purposes of life and in another for
tax pur­poses. Your residence is usually the place
where you maintain your most important family,
social, economic, political and religious ties. A
change of residence will not be accomplished by
a temporary or protracted absence from a place;
you must not intend to return.
Note: A person is also considered a resident if
they maintain a permanent place of abode in
Massachu­setts and spend more than 183 days,
in the aggre­gate, in the state. See TIR 95-7 for a
further explanation.

What is Gross Income for a Part‑Year
Resident?

As a part-year resident, you must file Form 1-NR/
PY if your gross income was more than $8,000 —
whether received from sources inside or outside of
Massachusetts.
Gross income for a part-year resident includes:
•	 All wages, salaries, tips, bonuses, fees and
other compensation;
•	 Taxable pensions and annuities;
•	 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;

•	 Interest on obligations of the U.S. and U.S.
­territories;

•	 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).

What Adjustments Must I Make as a
Part‑Year Resident?

Part-year residents must adjust income, deductions and exemptions when completing Form
1-NR/PY. In general, these items are reduced because all of your income may not be subject to
Massachusetts tax. Your deductions and exemptions are based on the number of days you were a
Massachusetts resident or the amount of income
that is subject to Massachusetts tax.

Income

Lines 5 through 11, 24, 27 and
Schedule D, Line 21

If you received only a portion of the income you
reported on your U.S. return while you were a
Mass­achusetts resident, subtract from your U.S.
income the amount earned and received while you
were domiciled in another state or country. However, you may be required to include all income
derived from Massachusetts sources received
while you were a nonresident, such as from rental
property or from a trade or business, including
employment, on Schedule R/NR, Resident/Nonresident Worksheet. Such income now includes
gains from the sale of a business or an interest in
a business, separation, sick or vacation pay, deferred compensation, income from cove­nants not
to compete, and nonqualified pension income that
federal law allows states to tax.

•	 Taxable portion of scholarships and fellow­ships;
and

Deductions

•	 Any other income not specifically exempt.

Most deductions are based on the actual amounts
paid by you associated with the deduction for the
period of time you were in Massachusetts.

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

Lines 15 through 19

The deductions listed below are based on the proration of the number of days you were a Massachusetts resident. See line 3 on Form 1-NR/PY for
the proration formula.

•	 Schedule Y, line 9c, charitable contribution
deduction;
•	 Schedule Y, line 10, student loan interest
deduction;
•	 Schedule Y, line 12, undergraduate student loan
interest deduction;
•	 Schedule Y, line 15, commuter deduction; and
•	 Schedule Y, line 18, prepaid tuition or college
savings program deduction and student loan repayment assistance deduction.
The deductions listed below are based on the actual amounts paid or received for the period of time
you were in Massachusetts. For example, you may
only deduct alimony (to the extent allowable as a
deduction) paid while you were a Massachusetts
resident. (See Schedule Y, line 3). Similarly, the deduction for attorney’s fees and court costs involving certain unlawful discrimination suits (Schedule
Y, line 9) must be directly related to Massachusetts
income as reported on Form 1-NR/PY, line 12.
•	 Schedule Y, lines 2 through 4;
•	 Schedule Y, line 5, moving expenses;
•	 Schedule Y, line 7, self-­employed health insurance deduction;
•	 Schedule Y, line 9a, Certain Qualified
Deductions;
•	 Schedule Y, line 9b, Certain business expenses;
•	 Schedule Y, line 13, deductible amount of qualified contributory pension income from another
state or political subdivision;
•	 Schedule Y, line 14, claim of right deduction; and
•	 Schedule Y, line 17, certain gambling losses.

Exemptions

Lines 4a through 4f

Your total exemptions (line 4g) must be prorated
based upon the ratio of days you were a Massachusetts resident. To adjust your exemptions, use
the formula in line 3 and see line 22 instructions.

Health Care Penalty
Line 39

If you are a part-year resident subject to the Health
Care Penalty for 2025 and are not appealing the application of the penalty, enter the penalty amount
from line 8 of the Health Care Penalty Worksheet
in line 39a for you and/or line 39b for your spouse.
Enter the total of lines 39a and 39b in line 39, but
do not enter less than 0. Be sure to enclose Schedule HC with your return. Failure to do so will delay
the processing of your return.

2025 Form 1-NR/PY Instructions	

7

If married filing a joint return and both you and
your spouse are subject to the penalty, separate
Health Care Penalty Worksheets must be filled
out to calculate the separate penalty amounts for
you and your spouse, using your married filing
jointly income.

When to File Your
Return

A part-year resident taxpayer who does not have
health insurance that meets the Massachusetts
standard of minimum creditable coverage may be
subject to a Massachusetts penalty.

Automatic Extensions

Earned Income Credit
Line 47

Your earned income credit (line 47) must be prorated based upon the ratio of days you were a
Massachusetts resident. To adjust this credit, use
the formula in line 3 and see line 47 instructions.

Should I Make Estimated Tax Payments in
2026?

Every taxpayer (whether a resident or nonresident) who expects to pay more than $400 in Massachusetts income taxes on income which is not
covered by Massachusetts withholding must pay
Massachusetts estimated taxes. Estimated tax
payments can be made online by using DOR’s
Mass­TaxConnect application at mass.gov/dor. See
line 44 instructions for more information.

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. It must
be signed and filed by his/her executor, 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 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.
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, Statement of Claim­ant to
Refund Due on Behalf of Deceased Taxpayer, must
be enclosed with the return so the refund check
may be made payable to the proper person.

Your 2025 Form 1-NR/PY is due on or before
April 15, 2026.
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.
Visit mass.gov/dor to file via the Web.
Form 1-NR/PY Extension Worksheet
1. Enter amount from Form
1-NR/PY, line 41.  .  .  .  .  .  .  .  .  .
2. Enter the total of Form 1-NR/PY,
lines 42 through 44 and 47
through 51 .  .  .  .  .  .  .  .  .  .  .  .  .  .
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. Form M-4868 is available at mass.gov/
dor or by calling (617) 887-6367 or toll-free in
Massachusetts (800) 392-6089.

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 fiscal year begins or 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.

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
Mass­
TaxConnect application at mass.gov/dor
or by calling DOR at (617) 887-6367 or toll-free
in Massachusetts (800) 392-6089. 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 on
your return. Also, enter your Social Security num­
ber on pages 2 through 5 of Form 1-NR/PY and on
page 2 of Schedules B or 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 numbers in the order they
appear on your federal return. 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
fro 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.

2025 Form 1-NR/PY Instructions	
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 Part­
nership Audit

If your amended return includes changes made
due to an IRS BBA Audit, fill in the Amended re­
turn 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-

8
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.

•	 Schedule HC – You must complete and submit Schedule HC showing the subscriber number,
member ID or group number from insurance card.
Form 1095 is a federal form and cannot be used
to report health care coverage in Massachusetts.

Filing an Application for Abatement

Voluntary Contribution to State Election
Campaign Fund (part-year residents only)

File an Application for Abatement only to dispute
one of the following:
•	 Penalties
•	 Audit assessments
•	 Responsible person determinations
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-NR/PY 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 4c – You must fill in the bubble for each
spouse over 65 and enter a “1” or “2” in the Total
box accordingly.
•	 Line 5 – 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 18 – Enter the total qualified rent paid in
2025 in the box, then divide by 2.
•	 Line 42 – You must submit all documents that
have Massachusetts withholding, including passthrough entity or K-1 withholding. You must also
enclose Schedule 62-WH.
•	 Lines 43 and 44 – Be sure to differentiate any
overpayment from 2024 as a credit carry forward
on line 43 and do not list it as 2025 estimated tax
payment on line 44.
•	 Line 48 – Schedule CB must be completed and
submitted with your return.
•	 Line 53 – Excess Paid Family Leave withholding
(PFML) is not the amount shown on your Form
W-2. You must use the worksheet for line 53 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.

You, and your spouse if filing jointly, may voluntarily contribute $1 each to the state Election Cam­
paign Fund. The purpose of the 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.

Veterans Benefits

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

Be sure to fill in the appropriate oval if a taxpayer
died during the taxable year. For further information, refer to the section How Do I File a Decedent’s
Return? in the instructions.

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

2025 Form 1-NR/PY Instructions	

9

more dependent exemptions on IRS Form 8332,
or participated in a decree or agreement to allow
the noncustodial parent to claim a dependency
exemption.

Fill in the Part-year resident oval if you were a resident of Massachusetts for less than the full year
and you did not receive Massachusetts source income while a nonresident.

requirement to file a U.S. return, you must enter
0 in this section.

Schedule TDS. Inconsistent Filing
Position Penalty

Fill in the Filing both as a nonresident and partyear resident oval if both categories apply to you
in the same tax year. See the section Who Must
File. You must also complete and enclose with
your return Schedule R/NR, Resident/Nonresident Worksheet.

b. Federal Adjusted Gross Income

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,
otherwise disposed of a digital asset (or a financial
interest in a digital asset) or you received a Form
1099-DA. Digital assets include non-fungible tokens (NFTs) and virtual currencies, such as cryptocurrencies and stablecoins.

Residency Status

Fill in the Nonresident oval if you were not a resident of Massachusetts and you received Massachusetts source income. See the section What
is Massachusetts Source Income for Nonresidents? for an explanation of Massachusetts
source income.

Nonresident Composite Return for
Professional Athletic Team Members

Massachusetts allows professional athletic teams
to file a composite return and make esti­mated tax
payments as an agent on behalf of two or more
qualified electing nonresident team members. Eligible members of a composite return must meet
the following requirements:
•	 Must be nonresidents for the entire taxable year;
•	 Must elect to be included in the composite return by signing a statement;
•	 Must agree to be subject to Massachusetts tax
jurisdiction; and
•	 Must waive the right to claim deductions, exemptions and credits allowable under MGL ch
62, §§ 3, 5 and 6. Taxpayers filing a nonresident
composite return should enter 0 on Form 1-NR/
PY, lines 20 (total deductions), 22 (exemption
amount) and lines 33 to 35 (credits).
Each electing nonresident team member must
sign under penalties of perjury a statement affirmatively stating such team member’s qualifications and election to file a composite return. The
composite return is filed on Massachusetts Form
1-NR/PY along with the applicable schedules and
attachments. The total Massachusetts gross income reported on the composite Form 1-NR/PY
must be the sum of all the qualified electing nonresident members’ Massachusetts source income.
Be sure to fill in the Nonresident composite return
oval if this category applies to you.
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 six 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. 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. If you did not have a

Note: Failure to enter this information will delay
the processing of your return.
Enter your federal adjusted gross income (from
U.S. Form 1040, line 11a or U.S. Form 1040-NR,
line 11a). If married filing separately and living
in the same household for the last six 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. 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. 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 and select only one.
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. Generally, a joint Form 1 is not allowed unless
both spouses were Massachusetts residents for
the same portion of 2025. See TIR 24-4 and regulation 830 CMR 62.5A(11), Nonresident Income
Tax, for additional information.

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 were unmarried;
•	 You were a widow or a widower whose spouse
died before 2025; or
•	 You were legally separated under a final judgment of the probate court.
Note: You are not single if:
•	 You have obtained a judgment of divorce which
has not yet become final;

2025 Form 1-NR/PY Instructions	
•	 You have a temporary support order; or
•	 You and your spouse simply choose to live
apart.

Married Filing Joint Return

Fill in the Married filing joint return oval if you
were legally married as of December 31, 2025, and
you elect to file a joint return. A joint return is allowed even if only one spouse had income. Both
spouses are responsible for the accuracy of all information entered on a joint return, and both must
sign. If your spouse died during 2025, you may
still choose to file a joint return.
Note: A joint Form 1-NR/PY is generally not allowed unless each spouse is reporting income for
the same resident or nonresident period. For example, John (a Massachusetts resident) and Jane
(a New Hampshire resident) both work in Massachusetts. After they were married in June 2025,
John moved to New Hampshire to live with Jane.
They cannot file a joint return because their nonresident tax years are different. (Jane lived in New
Hampshire during the entire year, but John only
lived there for six months.)

Married Filing Separate Return

Fill in the Married filing separate return oval if
you were le­gally married as of December 31,
2025, but you elect to file separately. 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, Exemptions,
Standard Deduction, and Filing Information, for
more information.

10
Lines 2 and 3. Part-Year Resident
Proration Formula

Part-year residents must fill out the proration formula in lines 2 and 3. Enter the dates you were
a Massachusetts resident in the spaces provided.
Then, enter the total days you were a Massachusetts resident and divide this number by 365 and
carry this division out to four decimal places. Failure to do so may delay the processing of your return. This figure is used to determine the portion
of certain de­ductions, exemptions, and the earned
income credit a part-year resident may be eligible to claim.

Whole Dollar Method Required

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 either of the
following ways:
•	 Round amounts before adding them up and
enter the resulting total on the form; or
•	 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 4. Exemptions

Line 4a. 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 4a.
•	 If filing as head of household, enter $6,800
in line 4a.
•	 If married filing a joint return, enter $8,800
in line 4a.

Line 4b. 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 or U.S.
Form 1040NR. Do not include yourself or your
spouse. Then, multiply that total by $1,000 and
enter the total amount in line 4b. 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.

Line 4c. 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 4c.
Note: Only one person (or married couple filing
jointly) may claim the dependent exemption for
any one child or other dependent.

Line 4d. 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. Then,
multiply that total by $2,200 and enter the total
amount in line 4d.

Legal Definition of Blindness

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 4e. Medical/Dental Expenses

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

Line 4f. Adoption Agency Fee

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 4f.

Lines 5 through 11

◗	 Income received by nonresidents is taxed only
when it is from Massachusetts sources. Refer to
the general instructions in this booklet for a definition of Massachusetts source income. The instructions for each of these lines will describe
Massachusetts source income in more detail. For
part-year residents, income received while a resident, whether from sources inside or outside of
Massachusetts, is taxable.
◗	 Your entries must agree with the appropriate
amounts on your copies of Forms W-2 and 1099,
and/or required schedules for lines 8 and 9. Nonresidents, if your actual Massachusetts source

2025 Form 1-NR/PY Instructions	
income is not known, see the Nonresident Apportionment Work­sheet in line 13 and accompanying
instructions.

5.0% Income

If filing as both a nonresident and part-year resident, you must complete Schedule R/NR, Resident/Nonresident Worksheet, before proceeding.

11
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 5 the Form W-2 state wage
amount. This amount will be greater than the U.S.
amount because your pension contributions are
excluded from your income for U.S. tax purposes.
Contributions up to $2,000 may be deducted in
line 15a or 15b for Massachusetts tax purposes.

Line 5. Wages, Salaries, Tips and Other
Employee Compensation

Medicaid waiver payments. To the extent included
in Form 1-NR/PY, line 5, 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.

Report in line 5 total state wages from Form(s)
W-2. Enter the amount(s) stated as Massachusetts wages.

Line 6. Taxable Pensions and Annuities

Note: Massachusetts does not adopt the federal
deduction for tip income (IRC § 224) or the federal
deduction for overtime pay (IRC § 225).

Note: Part-year residents, income earned while a
Massachusetts resident in another state is subject
to taxation in Massachusetts.
In most cases your total wages will be the same
amount reported on your U.S. 1040, line 1z or U.S.
1040-NR, line 1z unless:
•	 You or your spouse earned income from employment outside Massachusetts (nonresidents
only);
•	 You were a Massachusetts resident working in a
foreign country (part-year residents only);
•	 You were a resident of Massachusetts for only
a part of 2025; or
•	 You were a state or local employee and made
contributions to a Massachusetts state or local
pension plan.

Differences Between Wages for Mass­
achu­setts Tax Purposes and Those
Reported on Your U.S. Returns
Nonresidents earning a portion of income from
employment outside Massachusetts. If a portion
of the wage income reported on your U.S. return
was earned outside Massachusetts, the amount in
line 5 should not include wages earned in another
state or country.
Massachusetts residents working in a foreign
country while a Massachusetts resident. Income
earned 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 § 911 of the IRC), you must include any such amount in line 5 for Massachusetts
tax purposes.
Part-year residents of Massachusetts. If you
earned only a portion of the income you reported
on your U.S. return while you were a Massachusetts resident, subtract from your U.S. wages the
amount earned and received while you were domiciled in another state or country.

Nonresidents. Under Title 4 of the USC § 114,
payments to nonresidents from certain qualified
pension plans are not subject to tax.
Qualified plans include:
•	 A qualified trust under IRC § 401(a) exempt
from taxation under IRC § 501(a);
•	 Simplified IRC § 408(k) plans;
•	 IRC § 403(a) annuity plans;
•	 IRC § 403(b) annuity contracts;
•	 IRC § 7701(a) (37) individual retirement plans;
•	 Eligible deferred compensation plans of state
and local governments and tax exempt organizations as defined by IRC 457;
•	 IRC § 414(d) government plans; a trust or
trusts described in IRC § 501(c) (18); and
•	 Any plan, program or arrangement described
in IRC § 3121(v)(2)(C) or any plan, program, or
arrangement that is in writing, that provides for
retirement payments in recognition of prior service to be made to a retired partner, and that is
in effect immediately before retirement begins if
payments are made at least annually and spread
over the actuarial life expectancy of the beneficiaries, or if payments are spread over at least a ten
year period.
Such income is also protected from state taxation
if the plans are trusts under IRC § 401(a), but exceed limits laid down in IRC §§ 401(k), 401(m),
402(g), 403(b), 408(k) or 415 or any other limitation on contributions or benefits which may apply
in the Code.
Retirement or retainer pay of a member or former
member of a uniformed service computed under
10 USC ch 71 (military pensions) received by a
nonresident is also exempt.
Any income from pensions related to a Massachu­
setts trade, business or employment that is not
derived from one of the qualified pension plans
listed above is taxable. Enter in line 6 the portion
of those pensions reported on your U.S. Form
1040, line 5a, that are taxable to Massachusetts
nonresidents.

Part-year residents. Income from most private
pensions or annuity plans is taxable in Massachu­
setts. You must report the taxable pension income
you received while a resident of 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 not exempt,
you should generally enter in line 6 the taxable
amount reported on your U.S. Form 1040, line
5b. In some cases, however, Massachu­setts law
requires an adjustment to the federa