Massachusetts Form 1-NR/PY --Explanation Statement Issue

Forum|Forum|6 years ago
March 30, 2020
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I am a full time Connecticut resident and who does some work in Massachusetts for 2 employers and received W2's from both. After filling out both states, MA and CT and my federal returns with turbo tax business I get one Massachusetts error.

Form 1-NR/PY -- Explanation Statement: Total income on Form 1-NR/PY, line A exceeds total income on Form 1-NR/PY, line 14f by more than 10%. Massachusetts requires an explanation for this. Turbo Tax business put a 0 in the Total wages earned outside of Massachusetts. It is Mac based. Thoughts?

DaveF1006

Level 15

it sounds like you didn't allocate your income in your Mass return. You might wish to go over the Mass return again. As you navigate through your Mass return one of the first screens will say "How Mass handles income for non-residents"

Next screen will say apportion your wages? say yes
Next screen should show your wages select edit
Next screen should show non-resident apportionment select done at the bottom
Then in the screen that says wages earned outside Mass, make the selection on what amount was earned out side mass.
Then it will ask you about your other income you reported. If non was earned in Mass, record the entire amount listed.
The point is, there should be no wages reported earned outside Mass. Check these entries thoroughly.

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brendelmarkwAuthor

Level 2

Thanks Dave,

Followed you to step 4 and the box "total wages earned outside of Mass" says 0. Where is the selection of what amount I earned outside of Mass.

Step 3 does say you cannot apportion Mass wages as shown on Form W-2 when MA is in Box 15.

Also, when I select edit after the employer name in step 3 I see list of which method you want to apportion your income,

100% Mass income, working days, miles, sales, other.

What did I miss.

linear

Alumni - Champ

Regarding the requested statement:

If the total income reported on your federal return (line a) is 10% or more greater than the total income reported at the state level (line 14f), MA asks for an explanation. You just need to enter that explanation, but will have to examine your income items to determine what it might be.

The difference could be due to a spouse's income (included on federal but not on state), or it could be due to income taxable at the federal level but not taxable at the state level.

Here are some possibilities for items not taxed by the state of MA:

https://www.mass.gov/service-details/learn-about-massachusetts-gross-adjusted-gross-and-taxable-income#IncomeExcludedMA