MA state tax return for non resident - capital gains

[positivity999]

I am non resident in Massachusetts but need to file a state tax return only for a rental property.

I made lots of stock trades with taxable gains. All of my gains have nothing to do with Mass so they should not be on the MA return.

How can i just flag that my entire gain capital gain is outside of MA and hence not taxable ? Currently turbotax is pulling in all ~100 of my individual stock trades and asking me to "edit" each one to flag whether it is MA sourced income or not. That's obviously not practical when there are so many trades.

There must be a way of just excluding it all but i can't figure it out. It asked me if my W2 income was MA sourced and i was able to say no to that. I'm looking for a screen that does a similar thing for gains and losses, so that i dont have to edit them individually.

Help pls !!

[MaryK4]

Unfortunately, Massachusetts uses a ratio formula to determine your tax- so you must allocate what income is Massachusetts source income.  Your total income is used to determine the tax then the percentage of Mass income is taxed.  The only way I could think to make it easier would be to enter the summary amounts so there would not be so many transactions.  See  Entering 1099-B Summary #'s.

If you're a nonresident of Massachusetts, you must file a Massachusetts Income Tax Return if you received Massachusetts source income in excess of your personal exemption multiplied by the ratio of your Massachusetts source income to your total income, or your gross income was more than $8,000 – whether received from sources inside or outside Massachusetts.  Personal Income Tax for Nonresidents

[positivity999]

Thanks I appreciate the quick response. The problem is i need the detailed level of. gains for my federal return, and the federal return is then feeding into the MA return. Is there a way i can change my gains to summary level ONLY for the MA state return but leave the details for my Federal and resident state returns ?

[positivity999]

any advice ???

[DianeW777]

When you complete the Massachusetts (MA) tax return you will have the opportunity to confirm or enter the income that should be taxable to MA. 

If necessary use the example provided by entering only one or two  (if both long and short term holding periods are necessary) investment sales that are specifically for MA. If the holding period is all one or the other, you can make one entry specifically for MA. See the holding periods below.

As indicated by our tax expert @MaryK4 MA tax is calculated by taking their income and dividing it by the federal income to arrive at the percentage of tax.

Holding Periods:

• Long term is a holding period of more than one year (one year plus one day) and receives capital gain tax treatment (0%, 10%, 15%, 20% depending on your regular rate of tax)
• Short term is a holding period of one year or less and receives ordinary gain tax treatment (your regular rate)

@positivity999 

[Silvia2ri]

Hi I'm sure you already filed.  I had the same issue and saw your questions and answers. I went back in and when you click to edit you Capital Gains it gives you an option to de-select these funds for Massachusetts tax filing. Hopefully this will help the next person.  Just to reiterate. Go back in and edit the Capital Gains and it gives you the option to remove these from the MA Tax Filing.  Good Luck!