Schedule CMS - Credit Manager Schedule Credit
The Credit Manager Schedule (Schedule CMS) is a required form for Massachusetts taxpayers who have credits available for use or are using credits in the current tax year. It must be submitted with the tax return to report all credits, whether used or not, to ensure proper processing and avoid delays.
Key Requirements for Schedule CMS
- Universal Reporting: All taxpayers with credits—whether refundable or non-refundable—must complete and submit Schedule CMS, even if credits are not being used in the current year.
- Reporting Method: Credits are reported using either:
- A certificate number assigned by the Department of Revenue (DOR) or another state agency.
- The tax period end date if no certificate number is assigned.
- Format Rules: If a certificate number is assigned, enter it without hyphens, spaces, or special symbols. If no certificate number exists, report the tax period end date.
Sections of Schedule CMS
- Section 1 - Non-Refundable Credits: Reports all credits not received via Massachusetts K-1 schedules. Includes credits used to offset tax liability, pass to partners/shareholders, or share with affiliates. Examples: Brownfields, Film Incentive (unless refund requested), Medical Device (carryover only).
- Section 2 - Refundable Credits: Reports refundable credits for which a refund is being requested. The Film Incentive credit must be reported here if a refund is sought.
- Section 3 - K-1 Credits (Used): Reports credits received on Massachusetts K-1 schedules (SK-1, 2K-1, 3K-1) that are being used to offset tax liability, passed to partners/shareholders, or shared with affiliates.
- Section 4 - K-1 Credits (Refundable): Reports refundable credits received on K-1 schedules for which a refund is being requested. Must account for any credits already used or shared.
Important Notes
- Angel Investor Credit: As of 2023, reported by certificate number only.
- Film Incentive Credit: Not reported in Section 4. If requesting a refund, report in Section 2. New certificate numbers are issued by DOR when received from pass-through entities.
- Medical Device Credit: Eligibility repealed for tax years beginning on or after January 1, 2022. Carryover credits must still be reported.
- Credit Table: The instructions include a Credit Table listing all Massachusetts credit types with their attributes. Taxpayers should refer to this table for guidance.
Source:
Schedule CMS Instructions
Disclaimer: Always verify details with official forms and instructions from the Federal or State Department of Revenue.