For Schedule R/NR in Massachusetts, “Part 1, Business, Column D” refers to the Massachusetts-source income allocated to the entity. To calculate it:
Start with federal business income (profit or loss from Form 1120 or 1065).
Apply Massachusetts adjustments: add back non-deductible items and subtract exempt income.
Allocate based on apportionment if the business operates both in and outside MA:
Use the sales factor, property factor, and payroll factor (or single sales factor if elected).
Multiply federal business income by the Massachusetts apportionment percentage.
The resulting amount is entered in Part 1, Business, Column D.
💡 Tip: Massachusetts Form 355 or 355S instructions include a step-by-step example for Part 1 and Column D.
If you want, I can draft a super simple formula-style version for quick reference when filling out the form. Do you want me to do that?
