Massachusetts Fees and Other 5.05% Income

Article ID: 60156  

Massachusetts Fees and Other 5.05% Income


The following items should be reported on line 4 of Schedule X. Do not enter less than 0. Enclose additional statements if more space is needed.

--All fee income, such as payments for jury duty, election worker payments, director’s fees, compensation received as executor or administrator of an estate, and commission income or tips not reported in line 3 of Form 1 are taxable. Also, report all bartering income not reported on Schedule C (the fair market value of goods or services received in payment for your services).

--All prizes and awards won in a quiz program, drawing, beauty contest, etc. are taxable at fair market value. Awards and bonuses received from your employer for performance of services not part of a qualified award plan are also taxable.

--Forgiveness of debt and mortgage forgiveness.

--Other Massachusetts 5.05% income reported on U.S. Form 1040, Schedule 1, line 21 and not reported elsewhere in Form 1, lines 3 through 8 or Schedule X, lines 1 through 3 must be reported in line 4 of Schedule X.

--Pre-1996 installment sales classified as ordinary income for Massachusetts purposes (from Massachusetts Schedule D, line 10) are taxed as 5.05% income and must be reported on line 4 of Schedule X.

--Embezzled or other income from illegal activities is taxable and should be reported on Schedule X, line 4.

The following items should not be reported on your Massachusetts return:

--Any net operating loss reported as a negative amount on U.S. Form 1040, Schedule 1, line 21 cannot be entered on Schedule X. A net operating loss from a business or profession cannot be carried forward or backward to offset individual income in any other year under Massachusetts law.

--Refunds of U.S. and Massachusetts income taxes are not considered income under Massachusetts law. If you received interest on refunds, report such interest on Massachusetts Schedule B.

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