The following Deductions to income are permitted on the Massachusetts return:
Adoption fees paid to a licensed adoption agency during the year
Income Excludible under MGL Ch. 41, Sec. 111F
Amount received by firefighter or police officer that was incapacitated in the line of duty
U.S. Tax Treaty
Amount received by qualifying students exempt under a U.S. tax treaty
Claim of Right Deduction
If a taxpayer paid income tax in a prior year on income attributed to them under "claim of right", the amount of that income can be deducted from the gross income if they were not entitled to the income and have repaid the amounts in question. See the Massachusetts instructions for complete requirements.
Commuter Deduction (cannot exceed $750)
List amounts for tolls using the E ZPass account and the amount of payment for transit commuter passes (MBTA)
Amount Paid to Social Security (FICA), Medicare, Railroad, U.S. or Massachusetts Retirement Systems (maximum of $2,000 per person)
Deduct your contributory pension income received from another state
Undergraduate Student Loan Interest Deduction
Deduct interest paid on qualified undergraduate loans. See the Massachusetts instructions for Line 10.
Deduction for Expenses of Human Organ Transplant (cannot exceed $10,000)
Certain Gambling Losses
A deduction for losses from wagering transactions incurred in a gaming establishment licensed in accordance with chapter 23K or a racing meeting licensee or simulcasting licensee
Prepaid Tuition or College Savings Plan Deduction ($1,000; $2,000 for married filers)
For more information on these deductions, including requirements, maximums and qualifications, see the Massachusetts Instruction guide.
Health Savings Accounts
Enter the amount from Form 1040, line 25
Certain Qualified Deductions from US Form 1040
Enter amounts from line 36 of the 1040 Form that are not recorded in lines 23-35. For example, Jury Duty pay given back to the employer would be listed on line 36 as a write-in adjustment only. Within the program, the amounts would be recorded as adjustments (line 36) on the federal return by going to:
- Federal Section
- Deductions (Enter Myself)
- Other Adjustments
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
Certain Qualified Business Expenses from US Form 1040
Child under Age 13, or Disabled Dependent/Spouse Care Expenses
Massachusetts allows more than the federal return does for the employment related expenses for care of children under age 13, disabled dependents or a disabled spouse. The maximum deduction is $4,800 for one qualifying individual and $9,600 for two or more qualifying individuals.
Rental Deduction (up to 50% of amount paid; maximum of $3,000)
College Tuition Deduction
Tuition payments made to a qualifying two or four year college for an undergraduate or associate's degree. The deduction is limited to the amount the tuition payments (minus any scholarships, grants, or financial aid) exceed 25% of the Massachusetts AGI amount.
Allowable Employee Business Expenses
Massachusetts has adopted the federal changes due to the Tax Cuts and Jobs Act. Therefore, miscellaneous itemized deductions subject to the 2% adjusted gross income limitation have been suspended (except for reservists, performing artists and fee-based government officials). These include:
- travel, meal and lodging expenses while away from home or transportation expenses incurred by the taxpayer in service as an employee
- expenses attributable to a trade or business when the taxpayer is performing as an employee
- entertainment expenses incurred in the course of business