Massachusetts requires withholding in certain situations when a nonresident sells Massachusetts real estate. The withholding is generally paid at the time of the sale and may be claimed as a payment on the Massachusetts tax return.
Program Entry
Massachusetts Return → Payments → Nonresident Withholding on Sales of MA Real Estate
The Following Information Can Be Added
Taxpayer or Spouse
Select the individual to whom the withholding belongs.
Payer Name
Enter the name of the person 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 sale of the real estate.
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 the real estate closing documents or 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; or
- Offset other Massachusetts tax liabilities.
Notes
- A separate entry should be created for each sale reporting Massachusetts withholding.
- The payer name, payer ID, Massachusetts income, and Massachusetts withholding should match the supporting documentation received from the real estate transaction.
- Retain copies of all closing statements, withholding certificates, and related documents with your tax records.
- Enter only withholding that was remitted to Massachusetts on your behalf.