How to File Your Massachusetts Tax Return for 2017

In 2017 more than three million Massachusetts taxpayers filed their state income tax returns. Yet thousands missed the April deadline, triggering penalties of 1% per month on unpaid balances and delaying refunds for weeks or even months. Filing your state tax return on time—and doing it correctly—is a legal requirement and a way to protect your money and avoid unnecessary stress.

This guide will walk you through filing your Massachusetts tax return for 2017, whether you are an individual taxpayer, part-year resident, or small business owner. You will learn which forms you need, how to determine your tax liability, and the payment options available if you owe tax. We will also cover filing deadlines, refund tracking, and common errors that slow the process.

By following these steps, you can confidently minimize fees and interest and maximize your chances of getting a timely refund. The information provided here is based on official Massachusetts Department of Revenue instructions for the 2017 tax year, so you can refer to it as a reliable reference while you complete your state tax return.

Understanding the 2017 Massachusetts State Income Tax

Filing your Massachusetts state tax return begins with knowing whether you are required to file for the 2017 tax year. The Massachusetts Department of Revenue sets clear rules for who must file, and meeting these criteria ensures you stay compliant while avoiding penalties or missed refunds.

Who Needs to File

Full-Year Residents must file if:

• Your gross income in 2017 was over $8,000, regardless of where it was earned.
• You are married and filing separately, and your spouse files a Massachusetts return.
• You want to claim a refund for Massachusetts taxes withheld from your pay.

Part-Year Residents must file if:

• You lived in Massachusetts for only a year, and your gross income exceeded $8,000.
• Your Massachusetts source income exceeded the smaller of $8,000 or your prorated personal exemption.

Nonresidents are required to file a state tax return if:

• You earned Massachusetts income exceeding the filing threshold, even if you did not live in the state.

Small Business Owners and Sole Proprietors: If you operated a business in Massachusetts or earned partnership income from Massachusetts sources, you are generally required to file.

Filing Thresholds and Key Figures

• Filing threshold: $8,000 in gross income.
• Personal exemptions: $4,400 for single filers, $8,800 for married filing jointly.
• Tax rate: 5.10% for most income in 2017, reduced from 5.15% in 2016.
• No standard deduction: Massachusetts offers no standard deduction; taxpayers either itemize deductions or take none.

Common Filing Scenarios

• You qualify for a refund because your employer withheld more than your tax liability.
• You owe tax because your withholding or estimated tax payments were less than the due amount.
• You meet the income threshold even if most income was earned outside of Massachusetts.

Knowing whether you need to file—and understanding the amounts that trigger a filing requirement—is the first step toward correctly completing your Massachusetts state tax return.

Important Deadlines and Key Changes

Deadlines are critical when filing your Massachusetts state tax return. Missing them can lead to penalties, interest charges, and delayed refunds. For the 2017 tax year, the Massachusetts Department of Revenue aligned filing schedules with federal dates but adjusted for state-specific holidays.

Filing and Payment Deadlines

• Filing deadline: April 17, 2018. Typically due on April 15, the date was extended because April 15 fell on a Sunday and April 16 was Emancipation Day, a holiday observed in Washington, D.C.
• Payment deadline: April 17, 2018. Any unpaid tax after this date began accruing penalties and interest.
• Extension deadline: October 15, 2018, for taxpayers who filed for an automatic six-month extension. Extensions provide more time to file, but do not extend the time to pay.

Penalties for Missing the Due Date

• Late payment penalty: 1% of the unpaid balance per month or part of a month.
• Minimum penalty: $10 if the return is filed over 60 days late.
• Interest charges: Calculated daily at a variable rate that the Massachusetts Department of Revenue sets.

Key Changes for the 2017 Tax Year

The most notable change for 2017 was the reduction in the Part B personal income tax rate:

• Previous rate: 5.15% in 2016.
• The new rate was 5.10% in 2017, which was applied to most types of income.
• This reduction was based on state revenue growth projections and offered Massachusetts taxpayers small but meaningful tax relief.

Marking these dates on your calendar and preparing early can help you avoid costly penalties and ensure that your payment, if owed, reaches the Department of Revenue on time.

Required Forms and Schedules

Filing your Massachusetts state tax return correctly starts with using the proper forms. The Massachusetts Department of Revenue provides separate forms for full-year residents, part-year residents, and nonresidents, along with mandatory schedules and payment forms. Choosing the correct ones ensures your return is processed without delays.

Main Forms

• Form 1 – Massachusetts Resident Income Tax Return
  For individuals who were Massachusetts residents for the entire 2017 tax year and whose gross income exceeded $8,000.
• Form 1-NR/PY – Massachusetts Nonresident or Part-Year Resident Income Tax Return
  This is for individuals who moved into or out of Massachusetts during 2017 or were nonresidents with Massachusetts-sourced income.

Mandatory Schedule

• Schedule HC – Health Care Information
  Required for all residents, regardless of coverage status. Reports health insurance details to meet the state’s mandate. Returns without a Schedule HC will be rejected.

Common Additional Schedules

• Schedule A – Itemized deductions (based on federal Schedule A, with state-specific adjustments).
• Schedule B – Interest and dividend income.
• Schedule C – Business income and expenses for sole proprietors.
• Schedule CB – Circuit Breaker Credit for qualifying senior homeowners or renters.
• Schedule D – Capital gains and losses.
• Schedule CMS – Credit Manager Schedule for various tax credits.

Payment and Extension Forms

• Form PV – Payment Voucher for submitting payments by mail.
• Form M-4868 – Application for Extension of Time to File (automatic extension with payment).
• Form 1-ES – Estimated Income Tax Payment Vouchers for quarterly estimated tax payments.

Where to Access the Forms

All official forms are available for download on the Massachusetts Department of Revenue’s website. Always refer to the correct page for the tax year to ensure you have accurate instructions and avoid outdated versions. Having the proper forms ready before you begin will save time and reduce the chance of errors when completing your return.

Step-by-Step Filing Instructions

Filing your Massachusetts state tax return for 2017 is straightforward when broken into clear steps. Following each stage carefully reduces the risk of errors, avoids unnecessary fees, and increases the chances of receiving your refund promptly.

Step 1: Gather Required Documents

Before you start, collect all the necessary records for the tax year:

• W-2 forms from all Massachusetts employers.
• 1099 forms (1099-INT, 1099-DIV, 1099-MISC, etc.).
• Form MA 1099-HC from your health insurance provider.
• A copy of your federal tax return (Form 1040, 1040A, or 1040EZ).
• Your 2016 Massachusetts state tax return for reference.
• Bank account details for direct deposit.

For small business owners and sole proprietors:

• Federal Schedule C.
• Receipts for deductible expenses.
• 1099-MISC forms for client payments.

Step 2: Complete Personal Information

On Form 1 or Form 1-NR/PY:

• Enter your name, address, and Social Security number as shown on your federal return.
• Select your filing status—single, married filing jointly, married filing separately, or head of household—and ensure it matches your federal return.
• Include spouse’s information if applicable.

Step 3: Calculate Income and Adjustments

For full-year residents (Form 1):

• On line 5, enter your federal adjusted gross income from your federal return.
• Make any Massachusetts-specific income adjustments (lines 6–11).
• Calculate your Massachusetts adjusted gross income (AGI) on line 12.

For part-year residents and nonresidents (Form 1-NR/PY):

• Include only Massachusetts-source income, plus any applicable adjustments.

Business owners:

• Report net business income from Schedule C.
• Include any taxable Massachusetts-source earnings.

Step 4: Deductions

Massachusetts does not offer a standard deduction:

• Enter zero on line 20 if not itemizing.
• If itemizing, transfer eligible deductions from your federal Schedule A to the Massachusetts Schedule A, applying state-specific rules.

Step 5: Calculate Tax Liability

• Subtract deductions from your Massachusetts AGI to find taxable income (line 26).
• Multiply taxable income by 0.051 (5.10%) to determine your tax amount.
• Add additional taxes such as use tax or penalties (lines 28–30).
• Subtract applicable credits, including earned income or property tax credits (lines 31–35).

Step 6: Payments and Refunds

• Enter Massachusetts tax withheld from W-2 and 1099 forms (line 36).
• Add estimated tax payments made during 2017 (line 37).
• Include any 2016 overpayment applied to 2017 taxes (line 38).
• If your payments exceed your total tax liability, the difference is your refund (line 47).
• If your tax liability exceeds your payments, the balance due is shown on line 48.

Step 7: Complete Schedule HC

This form is mandatory for all Massachusetts residents:

• Enter personal and income information.
• Report health insurance coverage for each month of 2017 using Form MA 1099-HC.
• Calculate the penalty due if you lacked coverage for part of the year.
• Attach Schedule HC to your return—your state tax return will be rejected without it.

Step 8: Review and Submit

• Double-check calculations, especially the 5.10% tax rate.
• Verify your filing status matches your federal return.
• Sign and date your return (both spouses must sign if filing jointly).
• If mailing, send to the correct address listed for your filing type.
• Keep copies of your completed return and all supporting documents.

Completing these steps will help ensure your Massachusetts state tax return is accurate, processed quickly, and free from costly mistakes.

Filing Methods

The Massachusetts Department of Revenue offers two main ways to file your 2017 state tax return: electronic filing (e-file) and paper filing. Choosing the correct method can significantly affect how quickly your return is processed and when you can expect your refund.

Electronic Filing (Recommended)

E-filing is the fastest, most accurate way to submit your Massachusetts state tax return.

Benefits include:

• Faster processing: Refunds are typically issued within two weeks of acceptance.
• Built-in error checks: The e-file system flags common mistakes before submission.
• Immediate confirmation: You’ll receive an electronic notice that your return was received.
• Payment flexibility: Pay electronically via bank transfer or credit/debit card.

Free filing options:

Many individual taxpayers qualify for free e-filing through the Massachusetts Department of Revenue’s online system. Visit the official e-file page to check eligibility and access the service.

Paper Filing

Paper filing is slower and more prone to delays due to manual processing.
Mailing addresses depend on your filing situation:

If payment is included:

Massachusetts Department of Revenue  

PO Box 7062  

Boston, MA 02204  

If expecting a refund or a zero balance:

Massachusetts Department of Revenue  

PO Box 7000  

Boston, MA 02204  

Tips for paper filing:

• Use black ink only and print clearly.
• Do not staple forms; use paper clips if necessary.
• Include all required forms, W-2s, and 1099s showing Massachusetts withholding.
• Keep a copy of everything for your records.

E-filing remains the preferred method for most taxpayers due to its speed and reliability. However, if you mail your return, double-check the address listed and allow extra time for delivery and processing.

Payment Options and Late Payment Consequences

Once you have determined your 2017 Massachusetts tax liability, the next step is arranging your tax payment. The Massachusetts Department of Revenue provides several payment options to simplify the process, whether you are paying in full or need to set up a payment plan.

Electronic Payment Options

MassTaxConnect is the state’s secure online system for making tax payments:

• Electronic Funds Transfer (EFT) lets you transfer funds directly from your bank account. No fees apply.
• Credit or Debit Card: Visa, MasterCard, American Express, and Discover are accepted. Processing fees apply.
• Scheduled Payments: You can schedule a payment for a future date before the due date to avoid penalties.

MassTaxConnect allows you to submit your tax payment at any time and receive an electronic notice confirming that it has been processed.

Traditional Payment Methods

If you prefer mailing your tax payment, include Form PV (Payment Voucher) and send it to the address listed on the form:

Massachusetts Department of Revenue  

PO Box 7062  

Boston, MA 02204

Make checks payable to “Commonwealth of Massachusetts” and be sure they are mailed on or before the due date.

If You Owe Tax and Cannot Pay in Full

If you owe tax but cannot pay the total amount immediately, you can request a payment plan through MassTaxConnect. These plans allow you to pay your balance monthly, helping you avoid more severe collection actions. Remember that interest and penalties will apply until the balance is fully paid.

Penalties and Interest

Missing the due date will result in:

• Late payment penalty: 1% per month or part of a month on the unpaid balance.
• Interest: Calculated daily at a variable rate until the balance is paid.
• Minimum penalty: $10 if you file more than 60 days late.

Estimated Tax Payments for 2017

If you are expected to owe a tax of $400 or more for the tax year, you must make estimated tax payments. Missing these can result in additional penalties. Many individual taxpayers make quarterly payments to reduce the risk of owing a large balance at the end of the year. By knowing your payment options and the consequences for missing the due date, you can file confidently, avoid extra fees, and better manage your tax liability.

Tracking Your Refund

After you submit your Massachusetts state tax return, you can check the status of your refund through the Massachusetts Department of Revenue’s Where’s My Refund? Tool. This online service provides real-time updates so you know when to expect payment.

How to Check Your Refund Status

To use the refund tracker, visit the Department of Revenue’s website and locate the page for “Where’s My Refund?” You will need:

• Your Social Security number.
• Your filing status as listed on your return.
• The exact total amount of your refund.

Once you enter this information, you’ll receive an electronic notice showing your current refund status.

Typical Processing Times

• E-filed returns: Most taxpayers can expect a refund within 2 weeks after acceptance.
• Paper returns: Processing may take 6–8 weeks from the date the return is mailed.

If You Owe Tax Instead

If your return shows that you owe tax rather than receiving a refund, you can use MassTaxConnect to confirm your tax payment was paid and view any remaining tax liability. Tracking your rebate regularly ensures you stay informed and can follow up promptly if delays occur.

Common Mistakes to Avoid

Even minor errors can cause the Massachusetts Department of Revenue to delay processing your state tax return. Avoiding these issues can save weeks of waiting and help you qualify for your refund sooner.

Frequent Errors

• Forgetting Schedule HC: This required form reports your health insurance coverage. Without it, your return will be rejected.
• Using the wrong tax rate: The correct rate for the 2017 tax year is 5.10%.
• Mismatched federal and state returns – Filing forms that don’t align with your federal return can trigger a review.
• Missing signatures: Both spouses must sign if filing jointly.
• Incorrect mailing details: Check the address listed for your filing type to avoid delivery problems.
• Not attaching W-2s or 1099s: All withholding documents must be included.

Taking a few minutes to review your return before you submit it is one of the easiest ways to prevent delays, additional notice letters, or extra instructions from the state.

Frequently Asked Questions (FAQs)

What payment plans are available if I can’t pay my tax bill in full?

The Massachusetts Department of Revenue offers payment plans for taxpayers who cannot pay their balance in full. You can apply online through MassTaxConnect. Once approved, you will receive a written notice outlining the terms. Interest and penalties will still apply until the full amount is paid, so budgeting for these charges is essential when agreeing to the plan.

Do I need to file a state tax return if I have already filed it with the IRS?

Filing your federal return with the IRS does not automatically satisfy your Massachusetts filing requirements. If you meet the income threshold or other filing criteria, you must submit a state tax return to the Massachusetts Department of Revenue. The subject of which forms to file will depend on your residency status and the sources of your income during the tax year.

What is state tax, and how is it different from federal tax?

State tax is the income tax collected by the Massachusetts Department of Revenue based on income earned within the state. It is separate from federal taxes collected by the IRS. Your state tax liability is calculated using Massachusetts rates and rules, and it applies only to Massachusetts-source income for nonresidents. Federal tax is calculated under national tax laws and covers all U.S.-sourced income.

How do I qualify for certain tax credits on my Massachusetts return?

You may qualify for tax credits such as the Earned Income Tax Credit or the Circuit Breaker Credit if you meet the eligibility requirements. Review the Massachusetts Department of Revenue’s instructions for each credit to determine if you meet the criteria. Sometimes, your eligibility may be tied to information reported on your federal return with the IRS, so keep both records handy when preparing your state tax return.