No. The student loan interest deduction for the state of Massachusetts is based on the qualified federal deduction and is not allowed if you did not claim the interest on your federal return.
Massachusetts General Rule:
Massachusetts allows 2 student loan interest deductions for interest paid on a "qualified education loan":
- The federal deduction at I.R.C. § 221 for both graduate and undergraduate student loan interest paid,
- Reported on Schedule Y, Line 10 which has a maximum amount allowed; and
- The Massachusetts deduction for interest paid on a qualified undergraduate student loan,
- Reported on Schedule Y, line 12 which is unlimited.
Please view the Student Loan Interest Deduction section in the Massachusetts link below for more information.
https://www.mass.gov/service-details/learn-about-education-related-deduction
