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, compen -
sation 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 5.2% income reported on U.S. Form 1040, 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 5.2% 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, 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.