Form 1-NR/PY: Massachusetts Nonresident/Part-Year Tax Return

The Form 1-NR/PY is a tax return used by individuals who were not residents of Massachusetts for the entire tax year (2023) but earned income within the state. This includes both nonresidents and part-year residents.

Who Should File Form 1-NR/PY?

A. Nonresidents: If you live outside of Massachusetts but earned income from sources within the state (wages, interest, rent, etc.), you may need to file a Form 1-NR/PY.

B. Part-Year Residents: If you moved to or from Massachusetts during the tax year, you are considered a part-year resident and must file this form.

What You'll Need To File Form 1-NR/PY?

  • Federal tax return and any relevant schedules.
  • Proof of income from MA sources (W-2s, 1099s, etc.).
  • Documentation for any deductions or credits you claim.
  • Schedule R/NR – Resident/Nonresident Worksheet (helps adjust income for part-year residents).

Key Points to Remember About Form 1-NR/PY:

Filing Threshold: There is no minimum income threshold for filing a Form 1-NR/PY. You should file if you owe MA tax or want to claim a refund for withheld MA income tax.

Tax Rate: Massachusetts has a flat income tax rate of 5%.

Income to Report: You only report income earned within Massachusetts on your Form 1-NR/PY. This includes wages, salaries, tips, investment income, rental income, and any other taxable income sourced from MA.

Deductions and Credits: Nonresidents can only deduct expenses related to their Massachusetts income. You'll need to calculate a Nonresident Deduction and Exemption Ratio on the form to adjust your standard deduction or itemized deductions.

Filing Options: You can file your Form 1-NR/PY electronically through the MA Department of Revenue (DOR) website or mail a paper copy to the DOR.