Most Massachusetts withholding, estimated tax payments, and credits transfer automatically from your federal return. However, some payments and credits must be entered directly on your Massachusetts return to ensure the correct balance due or refund is calculated.
Program Entry
Massachusetts Return → Payments
Amount of State Refund to Apply to Next Year
If your Massachusetts return results in a refund, you can choose to apply all or part of that overpayment to next year's Massachusetts taxes instead of receiving it as a refund.
This amount will be credited toward your next Massachusetts tax year.
Important
Complete and save your Massachusetts return before entering this election so the correct overpayment amount is available.
If your return shows a balance due rather than a refund, no amount can be applied to next year's taxes.
Prior Year Overpayment Applied to Current Year
If you elected to apply part of last year's Massachusetts refund to the current tax year, enter that amount here.
This amount is treated as a payment toward your current year's Massachusetts tax liability.
Massachusetts Extension Payment
If you filed a Massachusetts extension and made a payment with that extension, enter the payment amount in this section.
Extension payments reduce the amount of tax owed when the return is filed.
Keep records showing the date and amount of the extension payment.
PFML Amount Included in Withholding Pulled from Forms W-2
If Massachusetts Paid Family and Medical Leave (PFML) contributions were reported on your Forms W-2 and included in federal withholding information that transferred into the software, enter the applicable PFML amount here.
This information may be needed when calculating a credit for excess PFML withholding.
PFML Amount Included in Withholding Pulled from Form 1099-MISC
If Massachusetts PFML contributions were reported on a Form 1099-MISC and transferred into the return, enter the PFML amount here.
This entry helps determine whether excess PFML contributions were paid during the year.
Excess Paid Family Leave Withholding
Massachusetts allows a credit in certain situations when too much PFML was withheld during the tax year.
You may qualify for a credit if:
- You worked for multiple Massachusetts employers and total PFML withholding exceeded the annual limit.
- PFML contributions were withheld on qualifying 1099-MISC income.
- You are self-employed and participated in the PFML program and contributed more than required.
For tax year 2026, the maximum PFML contribution amount for most individuals is $848.70.
The software will calculate the allowable credit based on the information entered.
For more information, see our article on the subject.
PTE Withholding
PTE (Pass-Through Entity) withholding is tax paid on your behalf by:
- Partnerships
- S Corporations
- Other qualifying pass-through entities
If Massachusetts tax was withheld on your behalf by one of these entities, enter the withholding amount in this section.
Be sure to retain any Schedule K-1s or other supporting documents showing the withholding paid.
For more information, see our article on the subject.
Form PWH-WA Withholding
If Massachusetts withholding was paid using Form PWH-WA, enter the withholding amount here.
This withholding may apply to individuals who received income subject to Massachusetts withholding outside of a regular W-2 reporting situation.
Keep copies of Form PWH-WA and any related documentation with your tax records.
For more information, see our article on the subject.
Nonresident Withholding on Sales of Massachusetts Real Estate
Nonresident taxpayers who sell Massachusetts real estate may have Massachusetts income tax withheld at closing.
If Massachusetts real estate withholding was paid on your behalf, enter the withholding amount in this section.
You should retain copies of:
- Form NRW
- Closing statements
- Other documentation related to the real estate transaction
For more information, see our article on the subject.
Important Notes
- Massachusetts withholding reported on Forms W-2 and 1099 is generally transferred automatically from the federal return.
- Complete and save the Massachusetts return before entering an amount to be applied to next year's taxes.
- An overpayment cannot be applied to next year's taxes if the return results in a balance due.
- Keep copies of Forms W-2, Forms 1099, extension payment confirmations, Schedule K-1s, and other withholding records.
- Additional schedules or supporting documentation may be required for PTE withholding, PWH-WA withholding, and nonresident real estate withholding claims.
- Review all payment entries carefully to ensure your Massachusetts refund or balance due is calculated correctly.