Massachusetts may require tax withholding when a nonresident sells real estate located in Massachusetts. The withholding is generally collected at closing and remitted to the Massachusetts Department of Revenue on the seller's behalf. If withholding was paid, you may claim it as a tax payment on your Massachusetts return, which can reduce the amount you owe or increase your refund.
Program Entry
Massachusetts Return → Payments → Nonresident Withholding on Sales of MA Real Estate
Information You'll Need
Taxpayer or Spouse
Select the individual to whom the withholding belongs.
Payer Name
Enter the name of the person, attorney, closing agent, or entity that remitted the withholding.
Payer ID
Enter the Federal Employer Identification Number (FEIN) or other identifying number of the payer.
Massachusetts Income
Enter the amount of Massachusetts income related to the real estate sale.
Massachusetts Withholding
Enter the amount of Massachusetts tax withheld and remitted on your behalf from the sale.
How Do I Know If I Have Nonresident Real Estate Withholding?
If you sold Massachusetts real estate as a nonresident, withholding may have been collected at closing and remitted to the Massachusetts Department of Revenue.
Information regarding the withholding is generally provided as part of:
- Real estate closing documents
- Settlement statements
- Withholding certificates
- Other documentation received in connection with the sale
The information entered in this section should match the documentation provided at closing.
How Does This Affect My Return?
Massachusetts withholding paid on your behalf is treated as a tax payment and may:
- Reduce the amount of tax owed
- Increase your refund
- Offset other Massachusetts tax liabilities
Important Notes
- Create a separate entry for each real estate sale reporting Massachusetts withholding.
- The payer name, payer ID, Massachusetts income, and withholding amount should match the supporting documentation from the transaction.
- Keep copies of all closing statements, withholding certificates, and related documents with your tax records.
- Enter only withholding that was actually remitted to Massachusetts on your behalf.
- Additional documentation may be required to support the withholding claim and avoid processing delays.