Massachusetts Nonresident Apportionment Methods
Nonresidents of Massachusetts who earn income from sources within the state may be required to apportion their income for tax purposes. The Massachusetts Department of Revenue (DOR) provides specific guidelines for determining how much of a nonresident’s income is subject to Massachusetts taxation.
What is Massachusetts Source Income?
Massachusetts source income for nonresidents includes income derived from or effectively connected with:
- Any trade, business, or employment carried on in Massachusetts.
- Participation in any lottery or wagering transaction in Massachusetts.
Apportionment Worksheet (Line 13)
When the exact amount of Massachusetts source income is unknown, nonresidents may use the Nonresident Apportionment Worksheet (Line 13) to estimate their taxable income. This worksheet is applicable when income is earned both inside and outside Massachusetts.
- Line 13a: If income is measured by working days, enter the number of days worked outside Massachusetts.
- Note: Do not use this worksheet if the actual Massachusetts source income is known.
Who Cannot Apportion Income?
Certain nonresidents are not required to apportion their income. These include individuals whose actual Massachusetts income is clearly shown on their Form W-2 or other documentation. In such cases, the exact amount of Massachusetts-source income should be reported directly on the return.
Reporting Requirements
Nonresidents must report their Massachusetts-source income on Form 1-NR/PY. If using Schedule D, long-term capital gains on collectibles and pre-1996 installment sales must be reported on Schedule B, Line 11.
Where to File
If you have a tax due, use the light blue mailing label provided with your tax booklet. If unavailable, mail your original or amended Form 1-NR/PY to:
Massachusetts Department of Revenue, PO Box 7003, Boston, MA 02204-7003
Source:
Form 1-NR/PY Instructions
Form 1 Instructions
Massachusetts Personal Income Tax Forms and Instructions
Disclaimer: Always verify information with official Federal or State Department of Revenue Forms and Instructions.