You must complete Massachusetts Schedule B if any of the following apply:
- You received dividend income.
- You received interest income taxed at 5%, other than interest from Massachusetts banks.
- You had short-term capital gains or losses.
- You have a short-term capital loss carryover from a prior year.
- You had long-term gains on collectibles or pre-1996 installment sales treated as capital gain income for Massachusetts purposes.
- You had gains or losses from the sale, exchange, or involuntary conversion of property used in a trade or business.
- You had net long-term capital gains or losses.
- You are claiming excess exemptions.
When Is Schedule B Not Required?
You generally do not need to file Massachusetts Schedule B if:
- All of your interest income came from Massachusetts banks, and
- You did not have any of the other items listed above.
Interest from Massachusetts banks is reported separately on the Massachusetts return and, by itself, does not require Schedule B.
Will the Software Create Schedule B Automatically?
If the required information is entered in the federal section of the return, the software will generally:
- Transfer the information to the Massachusetts return,
- Create Schedule B automatically when required, and
- Complete the necessary calculations using the federal information entered.
Common examples include:
- Interest reported on Forms 1099-INT
- Dividends reported on Forms 1099-DIV
- Capital gains and losses reported on Schedule D
- Capital gain distributions from mutual funds
Important Notes
- Massachusetts Schedule B requirements differ from federal Schedule B requirements.
- Even if you were not required to file a federal Schedule B, you may still be required to file a Massachusetts Schedule B.
- Review all interest, dividend, and capital gain entries carefully to ensure the Massachusetts return is complete and accurate.
- If Schedule B is required based on your federal entries, the software generally prepares the schedule automatically without any additional state-specific entry.
You can view the Schedule B instructions and requirements here.