Massachusetts Income Tax form

[rapmarks]

trying to figure out where to put information from line 21 other income non employee compensation from 1099-Misc on the MA state income tax form. Using the free efile form online, and cannot figure where to place this item.

 

[sjsharkie]

trying to figure out where to put information from line 21 other income non employee compensation from 1099-Misc on the MA state income tax form. Using the free efile form online, and cannot figure where to place this item.

I don't have any experience with the MA state income tax form, but most state taxes make adjustments from the Federal AGI.

So since line 21 - other income would flow into the federal AGI number, there wouldn't be anything specific transfer of that particular number into the form. You would transfer (in most states) the federal AGI that would already include all of your income and adjustments to that income.

Again, not a blanket rule so please do your own research. But I would suspect that this is why you can't find where to place that particular item.

-ryan

 

[rapmarks]

it doesn't work, as my son got a notice from MA of tax owed on a previous year's return, due to the exact situation.

 

[persia]

It's been so long I've forgotten there are paper forms underneath the tax software! Just use TurboTax, it'll know where to put it....

 

[rapmarks]

MA has you put in the AGI, but then all the numbers. some of son's income is pre tax retirement contribution, and all that has to be claimed on MA. The easy way would be just to add it back in, but tax software doesn't work that way. I probably will go with turbo tax.

 

[sjsharkie]

Yes, the AGI is the starting point, and then adjustments are made for differences between federal and state tax law.

probably easier to use a paid software package but sometimes the state versions can be less than stellar. You should be able to go to the state tax instructions and follow those as far as where the adjustments go.

Good luck.

Ryan

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[SmithOp]

If hes a 1099 contractor he should be filling out a Sched C and paying SE taxes. See Pub 17, you can download the pdf version at irs.gov, from page 95 Other Income:

Nonemployee compensation. If you are not an employee and the fees for your services from a single payer in the course of the payer's trade or business total $600 or more for the year, the payer should send you a Form 1099-MISC. You may need to report your fees as self-employment income. See Self-Em- ployed Persons, in chapter 1, for a discussion of when you are considered self-employed.

Its probably what triggered the MA audit letter.




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[rapmarks]

this is a one time thing, my daughter in law transcribed diaries for a Harvard professor, earned one thousand dollars and spent more on child care, parking, and tolls. not self employed

 

[SmithOp]

this is a one time thing, my daughter in law transcribed diaries for a Harvard professor, earned one thousand dollars and spent more on child care, parking, and tolls. not self employed

Even more reason to do a sched c, she can write off the expenses. One time means nothing, I worked as a 1099 one time last year too, I just quit in Jan.

Dont waste your money on tax programs, there are IRS certified volunteers that will do it free, I run an aarp TCE site here in CA.

http://www.irs.gov/Individuals/Free-Tax-Return-Preparation-for-You-by-Volunteers


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[rapmarks]

I have no problem reporting for IRS, it is the MA form that I can't report, it has a place for income from partnerships, REITs, and farm income, but seems to stop there. I think I will revise federal to file on form C, and see what that does for us. But will we have to pay Medicare and SS tax?

 

[Beaglemom3]

Here's a link that may be of help, although knowing the Commonwealth's levels of inept bureaucracy, it may be an exercise in frustration.


http://www.mass.gov/dor/e-services/help-resources.html


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[SmithOp]

I have no problem reporting for IRS, it is the MA form that I can't report, it has a place for income from partnerships, REITs, and farm income, but seems to stop there. I think I will revise federal to file on form C, and see what that does for us. But will we have to pay Medicare and SS tax?

Only to the extent that she made money, sounds like it will be close to a wash with expenses. We complete state forms too, they flow down from federal schedules.


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[sjsharkie]

this is a one time thing, my daughter in law transcribed diaries for a Harvard professor, earned one thousand dollars and spent more on child care, parking, and tolls. not self employed

OK, so I looked up the form to see if I could help you out.

As others mentioned, you have 2 choices.

1. You can treat this as a Schedule C - Profit/Loss from a Business. My feeling is this is the way to go -- that way you can deduct the expenses against the income. It sounds like this was a business for profit even though she took a loss after expenses. IRS does scrutinize schedule C losses -- so you may want to consider taking $1 profit instead of a loss if the loss is not material (the IRS does not require you to recognize all expenses in the course of operating a business -- how generous of them). This option would require you to list profit/loss on line 6 and file a Mass Sch C -- it sucks that they don't allow you to just file the federal form as a replacement.

2. You can treat this as a hobby. The drawback here is that your daughter must itemize and there is a 2% floor -- it is 2% of your AGI which would likely wipe out most of the expenses. If you go this route, you will need to list the income as other income on line 9 and file Schedule X. The deductions would go on Schedule Y.

Hope this helps. (Note that I used to be a CPA, but my license is inactive -- so take the advice for whatever it's worth and insert normal disclaimer here about asking professional tax adviser)

-ryan

 

[rapmarks]

thanks for the good advice, I will try both suggestions. She won't be doing this again, it was a one time thing, she volunteered and got some pay for it.

 

[rapmarks]

found the place where it belonged and taxes efiled!!!!!