A deduction may be allowed for rent paid during the tax year to a landlord by the taxpayer if the principal residence is located in Massachusetts. However, if the rent is paid by a third party (like a parent) whose main home is elsewhere, the deduction is not allowed for either taxpayer.
How much is the deduction?
The deduction is limited to 50% of the amount of rent paid, not to exceed $3,000.
What if I live with someone and we each pay rent?
Each person paying rent is entitled to claim the deduction if the home is their main home. The deduction is based on the amount of rent each person pays.
Where do I report the rent paid in the program?
- State Section
- Rental Deduction
Additional information can be found here.