State of Massachusetts allows a certain amount of interest from Mass banks to be exempt from income
Massachusetts bank interest is literally interest that you get paid from a bank or other institution that is located in Massachusetts.
Back when banks were not nationwide, this made a lot of sense and was easy, but now it is very convoluted. When you look at the chart below you will see it can even include pawnbroker interest if the pawnbroker was in Mass.
Basically, if the bank has a branch or even an ATM in Mass, you can claim Mass Bank Interest if they paid you interest on an account you have there.
The Department of Revenue has had to make a nifty chart to help people figure out what is and is not a "bank." It is very long, but helpful so I will attach the link.
http://www.mass.gov/dor/individuals/filing-and-payment-information/guide-to-personal-income-tax/mass...
See this link for how to enter it.
https://ttlc.intuit.com/replies/5202507
