Massachusetts Schedule Y - Other Deductions Instructions
Note: Schedule lines without specific instructions are considered to be self-explanatory. Be sure to list on each schedule the name and Social Security number that appears first on Form 1. Do not cut or separate schedules.
Schedule Y Instructions
Be sure to enclose with Form 1.
Line 1. Allowable Employee Business Expenses
Generally, reimbursed employee business expenses are not included in your wages or salary and therefore are not allowed as deductions. However, there are unreimbursed and certain reimbursed expenses for which you are allowed a deduction. Complete the following worksheet in order to calculate your Massachusetts employee business expense deduction. The expenses must relate to income reported in lines 3 or 9 on Form 1.
Employees may deduct the following:
- unreimbursed travel and transportation expenses including lodging and meals away from home incurred by an employee; and
- all federally deductible unreimbursed employee business expenses, if the employee is a salesperson who solicits business for an employer away from the employer’s place of business.
Unreimbursed expenses are only deductible if all of the following conditions are met:
- you itemize deductions;
- if you filed a joint U.S. return, you must file a joint Massachusetts return; and
- your unreimbursed business expenses taken together with the other miscellaneous itemized deductions reported on U.S. Form 1040, Schedule A, lines 21, 22 and 23 exceed 2% of your federal adjusted gross income reported on U.S. Form 1040, Schedule A, line 26. See the following worksheet for Schedule Y, line 1.
If you are a qualified performing artist or a fee-basis state or local government official, do not complete the worksheet. Enter on Schedule Y, line 9 your federally deductible business expenses included on U.S. Form 1040, line 24 and fill in the appropriate oval in Schedule Y, line 9.
Note: Same-sex joint filers must recalculate their U.S. Form 1040, Schedule A by combining allowable expenses as reported on U.S. Form 1040, Schedule A, lines 24 and 28 and their adjusted gross incomes as reported on U.S. Form 1040, Schedule A, line 25 in calculating U.S. Form 1040, Schedule A, line 27. Same-sex joint filers must also recalculate their US. Form 2106 or 2106-EZ by combining allowable expenses as reported on U.S. Form 2106, lines 4, 9b and 10 or U.S. Form 2106-EZ, lines 4, 5 and 6. See TIR 04-17 for more information.
Schedule Y, Line 1 - Massachusetts Employee Business Expense Deduction Worksheet
|1. Enter the amount from U.S. Form 2106, line 10, or 2106-EZ, line 6 . . . . . .||_______|
|2. If you are an employee other than an outside salesperson, enter the amount of unreimbursed expenses included in U.S. Form 2106 or 2106-EZ, line 4 . . . . .||_______|
|3. If you are an employee other than an outside salesperson, enter the amount of unreimbursed meals and entertainment expenses included in U.S. Form 2106, line 9, column B or 2106-EZ, line 5, except for meals incurred while away from home. . . . .||_______|
|4. If you are an individual with a disability, enter the amount of impairment-related expenses included in line 1 and claimed online28 of U.S. Schedule A . . . . .||_______|
|5. Add lines 2 through 4. Enter the result here . . . . .||_______|
|6. Subtract line 5 from line 1. Enter the result here . . . . .||_______|
|7. Enter the amount from U.S. Schedule A, line27 . . . . . .||_______|
|8. Enter the smaller amount of line 6 or line 7 here and on Schedule Y, line 1 . . . .||_______|
Line 2. Penalty on Early Savings Withdrawal
If you were charged a penalty because of early withdrawal of savings, and interest on the savings that such a penalty relates to income reported on this return or on a prior year Massachusetts return, you may deduct the penalty. This deduction is the same as the amount allowable on U.S. Form 1040, line 30. Enter this amount in line 2 of Schedule Y.
Line 3. Alimony Paid
Enter in Schedule Y, line 3 the total amount that you paid to your former spouse during 2008 for alimony or separate maintenance under court decree, or for excess alimony amounts recaptured, as reported on U.S. Form 1040, line 31a.
Note: Alimony payments specified as child support are not deductible.
Line 4. Amounts Excludible Under MGL Ch. 41, Sec. 111F or U.S. Tax Treaty Included in Form 1, Line 3.
Massachusetts allows an exclusion from income of amounts received by a firefighter or police officer incapacitated in the line of duty, per MGL Ch. 41, sec. 111F, and an exclusion from income of amounts received by qualifying students exempt under a U.S. tax treaty.
Enter any excludible amount of income received while you were a firefighter or police officer incapacitated in the line of duty in line 4 of Schedule Y that was included in Form 1, line 3, and fill in the appropriate oval.
If you were a qualifying student or a taxpayer with income exempt under a U.S. tax treaty, enter any excludible amount of income received that was exempt under a U.S. tax treaty in line 4 of Schedule Y that was included in Form 1, line 3, and fill in the appropriate oval.
Line 5. Moving Expenses
Enter in Schedule Y, line 5 the amount from U.S. Form 1040, line 26.
Line 6. Medical Savings Account
Enter in Schedule Y, line 6 the amount of the Medical Savings Account deduction included in U.S. Form 1040, line 36 “MSA Write-In Adjustment.”
Line 7. Self-Employed Health Insurance
Enter in Schedule Y, line 7 the amount from U.S. Form 1040, line 29.
Note: If you elected to claim the federal credit under sec. 35 and had to reduce the amount on U.S. Form 1040, line 29 by the amount of the federal credit, you may add back the amount of the credit to the amount entered on U.S Form 1040, line 29.
Line 8. Health Savings Accounts
Enter in Schedule Y, line 8 the amount from U.S. Form 1040, line 25.
Line 9. Other Qualified Deductions
You may claim only the deductions listed below for Schedule Y, line 9. If you are entitled to claim any of the deductions in line 9, fill in the appropriate oval(s) and enter the total amount of deductions claimed in line 9.
- Certain qualified deductions from U.S. Form 1040. Do not include any amounts reported on U.S. Form 1040, lines 23 through 35 that are included in Form 1040, line 36 total. Enter only amounts included in U.S. Form 1040, line 36 as a write-in adjustment, except amounts contributed to sec. 501(c)(18) pension plans. For Massachusetts purposes, contributions to sec. 501(c)(18) pension plans are not deductible. Also, the IRC sec. 404 deduction for contributions on behalf of IRC sec. 401(c)(1) employees (sole proprietors and partners) is disallowed. See TIR 02-18 (I)(D) and DOR Directive 01-7 for more information. On the dotted line next to line 9, be sure to indicate the type of deduction being taken, as identified on U.S. Form 1040, line 36. Identify jury duty pay given to your employer as “Jury pay”; reforestation amortization as “RFST”; repayment of supplemental unemployment benefits under the Trade Act of 1974 as “Sub-Pay TRA”; attorney fees and court costs involving certain unlawful discrimination claims as “UDC”; and deductible expenses related to income reported on U.S. Form 1040, line 21 and Massachusetts Schedule X, line 4 from the rental of personal property engaged in for profit as “PPR.” Fill in the appropriate oval in line 9 of Schedule Y.
- Business Expenses of National Guard and Reserve Members, Performing Artists and Fee - Based Government Officials: Enter the amount from U.S. Form 1040, line 24 and fill in the appropriate oval in line 9 of Schedule Y.
Line 10. Student Loan Interest Deduction
Enter the amount from U.S. Form 1040, line 33 or 1040A, line 18. This deduction is only allowed if not claiming the same expenses in line 12 of Schedule Y, Undergraduate Student Loan Interest Deduction.
Note: Same-sex joint filers must use the “Student Loan Interest Deduction” worksheet in the instructions to U.S. Form 1040 or 1040A making sure to combine their income figures, and performing the calculation as though they were filing a joint federal return. See TIR 04-17 for more information.
Line 11. College Tuition Deduction
A deduction is allowed for tuition payments paid by you, for yourself or a dependent, to a qualifying two- or four-year college leading to an undergraduate or associate’s degree, diploma or certificate. Tuition payments for students pursuing graduate degrees at such a college or university are not eligible for the college tuition deduction. The deduction is equal to the amount by which the tuition payments, less any scholarships, grants or financial aid received, exceed 25% of Massachusetts AGI. Qualified tuition expenses include only those expenses designated as tuition or mandatory fees required for the enrollment or attendance of the taxpayer or any dependent of the taxpayer at an eligible educational institution. No deduction is allowed for any amount paid for room and board, books, supplies, equipment, personal living expenses, meals, lodging, travel or research, athletic fees, insurance expenses or other expenses unrelated to an individual’s academic course of instruction. Complete the Massachusetts AGI Worksheet and the Schedule Y, line 11 worksheet to see if you may qualify for this deduction. See TIR 97-13 for more information.
Schedule Y, Line 11 Worksheet - College Tuition Deduction
|1. Enter total tuition payments paid by you, for yourself or a dependent, to a qualifying two- or four-year college in 2009 . . . . .||_______|
|2. Enter amount of scholarships, grants or financial aid received in 2009 for amounts shown in line 1 . . . . .||_______|
|3. Subtract line 2 from line 1. If “0” or less, you do not qualify for this deduction||_______|
|4. Enter amount from line 7 of the Massachusetts AGI Worksheet . . .||_______|
|5. Multiply line 4 by .25. . . . .||_______|
|6. If line 3 is smaller than line 5, you are not eligible for this deduction. Enter “0.” If line 3 is larger than line 5, subtract line 5 from line 3 and enter the result here and in line 11 on Schedule Y . . . .||_______|
Line 12. Undergraduate Student Loan Interest Deduction
A deduction is allowed for interest paid on a qualified undergraduate student loan. To be eligible for the deduction, the “education debt” must be a loan that is administered by the financial aid office of a two-year or four-year college at which you, or a qualified dependent, were enrolled as an undergraduate student. Additionally, the loan must have been secured through a state student loan program, a federal student loan program, or a commercial lender, and must have been spent solely for the purposes of paying tuition and other expenses directly related to the school enrollment. Enter the amount of such interest paid in Schedule Y, line 12. This deduction is only allowed if not claiming the same expenses in line 10 of Schedule Y, Student Loan Interest Deduction.
Line 13. Deductible Amount of Qualified Contributory Pension Income from Another State or Political Subdivision Included in Form 1, Line 4
Massachusetts allows a deduction for contributory pension income received from another state or one of its political subdivisions which does not tax such income from Massachusetts or its political subdivisions. For guidelines to determine which state’s pensions are exempt in Massachusetts, see TIR 95-9. Enter any deductible amount of such income in line 13 of Schedule Y that was included in Form 1, line 4.
Line 14. Claim of Right Deduction
For tax years beginning on or after January 1, 2005, taxpayers who have paid Massachusetts personal income taxes in a prior year on income attributed to them under a “claim of right” may deduct the amount of that income from their gross income if it later develops that they were not in fact entitled to the income, and have repaid the amounts in question. The deduction is allowed in the year of repayment, provided that the repayment is not otherwise deductible in determining Massachusetts income taxable under M.G.L. ch. 62. Some examples in which the claim of right may be applied for are:
- Stock under claim of ownership. Gains from sales of stock under a claim of ownership must be included, regardless of whether the taxpayer actually owned it;
- Employment contracts. Amounts in settlement of employment contracts must be included notwithstanding the prospect of eventual repayment to the employer of an amount equivalent to or greater than the amount received;
- Dividends. Where a taxpayer receives a dividend that must be repaid in a later year (e.g., because it impaired corporate capital), the dividend must be included in the year of receipt;
- Corporate notes. Where a taxpayer receives a distribution with respect to holding of notes, the income must be included regardless of whether it could be challenged by senior creditors;
- Mistake in validity of claim. The claim of right doctrine applies where a taxpayer merely mistakes the validity of his claim; or
- Advanced insurance commissions. If you are entitled to claim this deduction, enter the amount claimed in Schedule Y, line 14. For more information, see TIR 06-4.
Line 15. Commuter Deduction
A deduction is allowed for certain amounts paid by an individual for tolls paid for through a FastLane account or for weekly or monthly transit commuter passes for MBTA transit or commuter rail, not including amounts reimbursed or otherwise deductible. In the case of a single person or a married person filing a separate return or a head of household, this deduction applies only to the portion of such expended amount that exceeds $150, and the total amount deducted cannot exceed $750. In the case of a married couple filing a joint return, this deduction applies only to the portion of such amount expended by each individual that exceeds $150, and the total amount deducted cannot exceed $750 for each individual. Also, one spouse cannot transfer his or her excess deduction to the other spouse; separate worksheets must be completed to calculate the deduction. See TIR 06-14 for additional information. Complete the worksheet below to calculate the commuter deduction.
Schedule Y, Line 15 Worksheet - Commuter Deduction
|1. Enter amount paid in 2009 for tolls through a Fast Lane account . . . . .||_______|
|2. Enter amount paid in 2009 for weekly or monthly transit commuter passes for MBTA transit or commuter rail. (Do not include amounts reimbursed or otherwise deductible)||_______|
|3. Add lines 1 and 2. If $150 or less, you do not qualify for this deduction. Omit remainder of this worksheet. Otherwise, complete lines 4 through 6. . .||_______|
|4. Enter $150 . . . .||_______|
|5. Subtract line 4 from line 3. . . .||_______|
|6. Enter the lesser of line 5 or $750 here and on Schedule Y, line 15 . . . .||_______|
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