Massachusetts College Tuition Deduction
The Massachusetts College Tuition Deduction allows taxpayers to reduce their state taxable income by the amount of qualified tuition expenses paid for themselves or a dependent. This deduction is available to full-year residents of Massachusetts and is subject to specific eligibility criteria and limitations.
Eligibility Criteria
- Tuition must be paid for enrollment in a qualifying two- or four-year college leading to an undergraduate or associate’s degree, diploma, or certificate.
- Payments must be made for academic terms beginning in the taxable year or during the first three months of the next taxable year.
- Expenses for graduate degrees are not eligible for this deduction.
- The deduction is not allowed for reimbursements or refunds of qualified tuition expenses made by an insurer.
Calculation of Deduction
The deduction is calculated as follows:
- Enter total tuition payments made during the year.
- Subtract any scholarships, grants, or financial aid received for those payments.
- Subtract any reimbursements or refunds received from an insurer.
- The remaining amount is the deductible tuition expense, subject to the 25% threshold (as per Form 1 instructions).
Deduction Limits
- The deduction is capped at $1,000 for single filers, married filing separately, or head of household.
- For married couples filing jointly, the cap is $2,000.
- The deduction is subject to recapture if distributions or refunds are made from a prepaid tuition or college savings program in future years.
Reporting Requirements
- Complete the Massachusetts AGI Worksheet and Schedule Y, Line 11 Worksheet to determine eligibility.
- Report the deduction on Schedule Y, Line 11 of Form 1.
- Ensure no duplicate deductions are claimed on Schedule Y, Line 12 (Undergraduate Student Loan Interest Deduction).
Source:
Form 1 Instructions
Disclaimer: Always verify details with official forms and instructions from the Massachusetts Department of Revenue. OLT (Online Taxes) provides guidance based on retrieved context and does not guarantee accuracy for all individual circumstances.