form 2 instructions - mass. · pdf fileplaced in service before january 1, 2014 (before...

Commonwealth of Massachusetts Department of Revenue

2013 Instructions for MassachusettsFiduciary Income TaxForm 2

Major Changes for 2013 2New Current Code Provisions that Massachusetts Adopts 2New Current Code Provisions that Massachusetts Does Not Adopt 2Common Form 2 Mistakes 2Definitions 3Common Questions 3Line by Line Instructions 5Schedule B/R. Beneficiary/Remaindermen 12Schedule B. Interest, Dividends and Certain Capital Gains 12

Schedule D. Long-Term Capital Gains and Losses 14Schedule E. Rental, Royalty and REMIC Income or Loss 16Schedule F. Credit for Income Taxes Due to Other Jurisdictions 17Form 2G. Grantor’s/Owner’s Share of a Grantor-Type Trust 17Schedule H. Expenses and Fiduciary Compensation 18Schedule IDD. Income Distribution Deduction 19Schedule 2K-1. Beneficiary’s Massachusetts Information 19Tax Table at 5.25% Rate 21

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Major 2013Tax ChangesFiling Due DateThe 2013 Form 2 is due on or before Tuesday,April 15, 2014.

Employer Wellness Program Tax CreditEffective for tax years beginning on or after Janu-ary 1, 2013, a Massachusetts business that em-ploys 200 or fewer workers may qualify for a taxcredit of up to 25% of the cost of implementing a“certified wellness program” for its employees. Ataxpayer seeking to claim the credit must apply tothe Department of Public Health (DPH) for certifi-cation of its wellness program. DPH will approve adollar amount of credit for a qualifying taxpayerand issue a certificate to be provided in connectionwith filing a tax return in order to claim the credit.The amount of the credit that may be claimed bya taxpayer cannot exceed $10,000 in any tax year.DPH has promulgated a regulation, 105 CMR216.000, Massachusetts Wellness Tax Credit In-centive, which sets forth criteria for authorizingand certifying the credit. The credit is set to expireon December 31, 2017.

Brownfields CreditThe Brownfields credit is a transferable credit al-lowed to taxpayers or nonprofit organizations thatincur eligible costs to remediate oil or hazardousmaterials on property that is owned or leased forbusiness purposes and located in an economicallydistressed area. The credit may be either 50% or25% (if the site is subject to an activity and uselimitation) of the “net response and removal costs”incurred. Recent legislation extends the Brown-fields credit, previously scheduled to expire onAugust 5, 2013, for five additional years. As a re-sult of the recent legislation, the environmentalresponse action commencement cut-off date hasbeen extended to August 5, 2018, and the time forincurring eligible costs that qualify for the credithas been extended to January 1, 2019. See TIR13-15 for more information.

New Current Code ProvisionsMassachusetts AdoptsAs a general rule, Massachusetts does not adoptany federal tax law changes incorporated into theInternal Revenue Code (“IRC” or “Code”) afterJanuary 1, 2005. However, certain specific provi-sions of the personal income tax automaticallyadopt the current Code. Provisions of the Codeadopted on a current Code basis are (i) Roth IRAs,(ii) IRAs, (iii) the exclusion for gain on the sale ofa principal residence, (iv) trade or business ex-penses, (v) travel expenses, (vi) meals and enter-

tainment expenses, (vii) the maximum deferralamount of government employees’ deferred com-pensation plans, (viii) deduction for health insur-ance costs of self-employed, (ix) medical anddental expenses, (x) annuities, (xi) health savingsaccounts, and (xii) employer-provided health in-surance coverage and amounts received by anemployee under a health and accident plan. SeeTIRs 98-8, 02-11, 07-4, and 09-21 for further de-tails on Massachusetts’ personal income tax cur-rent Code provisions.

Temporary Change to IRC Sec. 179ExpensingUnder the federal American Taxpayer Relief Act of2012 (P.L. 112-240), effective for tax years begin-ning in 2012 and 2013, the dollar limitation foran election under IRC sec. 179 to expense prop-erty in its initial year is $500,000, and the IRC sec.179 overall investment phase-out threshold is$2,000,000. Massachusetts adopts these changesbecause IRC sec. 179 is a trade or business ex-pense deduction; these deductions are adoptedby Massachusetts on a current Code basis.

New Current Code ProvisionsMassachusetts Does Not AdoptFederal “Bonus” Depreciation Deduction— Not AllowedFor federal income tax purposes under IRC §168(k), bonus depreciation applies to eligibleproperty acquired after December 31, 2007 andplaced in service before January 1, 2014 (beforeJanuary 1, 2015, for certain longer-lived and trans -portation assets). The bonus depreciation rate forproperty placed in service during this period isgenerally 50%. Under 2002 legislation, Massachu-setts decoupled from bonus depreciation allowedunder IRC § 168(k), as amended and in effect forthe current year. Therefore, Massachusetts doesnot adopt this additional depreciation deduction.See TIRs 02-11 and 03-25 for further details.

Domestic Production Activity Deduction —Not AllowedFor federal income tax purposes, a business entitythat pays wages to employees and conducts eligi-ble domestic production activities is allowed a de-duction for domestic production activities underIRC § 199. Generally, in the case of a non-corpo-rate taxpayer, the deduction allows a business withqualified production activities to deduct 9% of itsU.S. adjusted gross income. Under 2004 legisla-tion, Massachusetts decoupled from the produc-tion activity deduction allowed under IRC § 199,as amended and in effect for the current year.Therefore, Massachusetts does not adopt this de-duction. See TIR 05-5.

Privacy Act NoticeUnder the authority of 42 U.S.C. § 405(c)(2)(c)(i),and G.L. c. 62C, § 5, the Department of Revenue(“Department”) has the right to require a taxpayerto furnish his Employer Identification numberand/or Social Security number, as the case may be,on a state tax return. This information is manda-tory. The Department uses these numbers for tax-payer identification, to assist in processing andkeeping track of returns, and in determining andcollecting the proper amount of tax due. UnderG.L. c. 62C, § 40, the taxpayer’s identifying num-ber is required to process a refund of overpaidtaxes. Although tax return information is generallyconfidential pursuant to G.L. c. 62C, § 21, the De-partment may disclose return information to othertaxing authorities and those entities specified inG.L. c. 62C, §§ 21, 22, or 23, and as otherwiseauthorized by law.

Common Form 2 MistakesAn incomplete or incorrect return can delay proc-essing of your return. Below are tips to help usprocess your return as quickly as possible.

Incorrect ComputationMany returns must be corrected by the Departmenteach year due to simple errors in computation.Before mailing your return, check your arithmeticto make sure the computations are correct.

Filing StatusBe sure to select the correct oval for filing status.This requirement is frequently overlooked.

Fiscal YearClearly mark tax return "Fiscal Year" if applicable.

Missing Withholding Statement(s)Make certain the state copy of all Forms W-2(Wages), W-2G (Winnings), and 1099-G, or1099-R that show Massachusetts income taxwithheld are enclosed. These forms are frequentlymissing and must be obtained from you later inorder to process the return.

Missing Supporting SchedulesMake sure you have enclosed all required sched-ules and forms to support the information onyour Form 2. These include Massachusetts Form2 Schedules B, B/R, D, E, F, H, IDD, and 2K-1, andForm 2G. We cannot process your return withoutthese schedules and forms.

Credits — Missing Certificate or OtherIdentification Numbers and/or SupportingSchedulesMake sure you have included all required certif -icate or other identification numbers and/orschedules to support the credits you are claiming.Failure to include certificate or other identification

2 Before You Begin

numbers and/or schedules will result in the creditbeing disallowed on your tax return and an adjust-ment of your reported tax.

Missing SignaturesThousands of unsigned returns are received bythe Department every year. These returns must bereturned to taxpayers for signatures. Make suresignatures are on the correct lines.

DefinitionsComplex TrustAny trust that, for any given taxable year, doesnot qualify as a “simple trust,” as defined below.Complex trusts are governed by §§ 661 and 662of the Code.

Grantor TrustUnder G.L. c. 62, § 10(e), if the grantor or anotherperson is treated as the owner of any portion of atrust by reason of the provisions of §§ 671 to 678,inclusive, of the Code, the trust is a grantor trustand its income is taxable to the grantor or suchother person, not to the trust. The fiduciary of agrantor trust is required to file with the Depart-ment an informational return, Form 2G, along witha schedule indicating the items of income, deduc-tions, and credits against tax attributable to thetrust treated as owned by the grantor/owner andsend a copy of the schedule to the grantor/owner,who is required to report the income, deductions,and credits thereon on his Massachusetts individ-ual income tax return.

A resident grantor treated as an owner of agrantor-type trust is liable for making his own esti-mated tax payments, as applicable, on Form 1-ES.This is not the case when the owner is a nonresi-dent grantor, however. In such cases, the trusteemust make estimated tax payments on behalf ofthe nonresident grantor on Form 2-ES.

Massachusetts Source IncomeGross income derived from or effectively con-nected with: (1) any trade or business, includingany employment carried on by the taxpayer in theCommonwealth, regardless of where or when theincome is received; (2) the participation in any lot-tery or wagering transaction within the Common-wealth; or (3) the ownership of any interest in realor tangible personal property located in the Com-monwealth. Gross income derived from or effec-tively connected with any trade or business,including any employment, carried on by the tax-payer in the Commonwealth includes: gain fromthe sale of a business or of an interest in a busi-ness; distributive share income; separation, sick,or vacation pay; deferred compensation and non-qualified pension income not prevented from statetaxation by the laws of the United States; and in-come from a covenant not to compete.

Nonresident EstateAn estate of a deceased non-Massachusetts resi-dent. A nonresident estate is subject to the taxingjurisdiction of Massachusetts to the extent it earnsMassachusetts source income. In other words, theincome of a nonresident estate is taxable to the ex-tent it would be taxable to a nonresident individual.

Nonresident TrustA trust that earns Massachusetts source incomeand that is (1) a trust under the will of a decedentwho was a non-Massachusetts resident at death,(2) a trust all of whose trustees are nonresidents,or (3) a trust all of whose grantors are nonresi-dents at the time of the creation of the trust or atany time during the year for which the income iscomputed. These conditions must be met in orderto subject the trust to the taxing jurisdiction ofMassachusetts.

Qualified Settlement FundA “qualified settlement fund” as defined in IRC §468B(g) and Treas. Reg. § 1.468B-1 et seq. Seealso LR 08-7.

Resident EstateAn estate of a deceased Massachusetts resident.

Resident TrustA “resident trust” may be one of two types. It maybe a “testamentary trust” — a trust under the willof an individual who died an inhabitant of Mass-achusetts. Alternatively, it may be an “inter vivostrust” — a trust created during the life of thegrantor. To subject an inter vivos trust to the tax-ing jurisdiction of Massachusetts, the followingconditions must exist: the trustee or other fidu-ciary, or at least one of them, is a Massachusettsinhabitant, and (1) the grantor, or at least one ofthem, was a Massachusetts inhabitant when thetrust was created; or (2) the grantor, or at leastone of them, resided in Massachusetts during anypart of the year for which the income is computed;or (3) the grantor or at least one of them, died aMassachusetts inhabitant.

Simple TrustA trust that is required to distribute all of its in-come currently, may not make distributions ofprincipal, and does not provide for charitable con-tributions. Simple trusts are governed by §§ 651and 652 of the Code.

Unascertained PersonsA class of persons who cannot be identified withcertainty until the happening of a specified event.The term also applies to those of a class who fulfillsome special qualification. It is the trust termina-tion provisions that determine whether a remain-der interest is ascertained or not. For example, ifthe termination provisions read — “income to Xfor life, remainder to Y, if living, or, if not, to Y’s

estate” — the remainder interest is vested in Y andis not unascertained. However, if they read — “toX for life, remainder to Y, if living, or, if not, to Y’sissue then living” — the remainder interest is notvested in Y or Y’s issue and is unascertained be-cause it cannot be known for certain who will takethe remainder interest until X’s death. In the lattercase, gains realized by the trust will be deemed tobe income accumulated for the benefit of unascer-tained persons and taxable in full to the trust.

Uncertain InterestA type of future interest such as a contingent re-mainder or a vested remainder subject to beingcut off upon the happening of a contingency. Indetermining whether a person has an “uncertaininterest,” a remainder interest in a trust that isvested and not subject to being divested by thehappening of any contingency expressly men-tioned in the trust instrument is not classified asan uncertain interest. Any other type of future in-terest is an uncertain interest.

Common QuestionsOnce Massachusetts Jurisdiction isEstablished, to Whom is the IncomeTaxable?Resident Estate or TrustWhen income of a resident estate or trust subjectto the taxing jurisdiction of Massachusetts isbeing accumulated for a Massachusetts benefi-ciary(ies), unborn persons, unascertained per-sons, or persons with uncertain interests, suchincome is taxable to the estate or trust. Other-wise, income from such resident estate or trustincludable in the federal gross income of a benefi-ciary(ies) by reason of Code §§ 652 and 662 istaxable to the beneficiary(ies).

Nonresident Estate or TrustWhen Massachusetts source income of a nonres-ident estate or trust is being accumulated, suchincome is taxable to the estate or trust regardlessof whether it is being accumulated for a Mass-achusetts beneficiary(ies), non-Massachusettsbeneficiary(ies), unborn persons, unascertainedpersons, or persons with uncertain interests.Massachusetts source income of a nonresidentestate or trust includable in the federal gross in-come of a Massachusetts or non-Massachusettsbeneficiary(ies) by reason of Code §§ 652 and662, however, is taxable in Massachusetts to thebeneficiary(ies). All other income of a nonresidentestate or trust, i.e., all non-Massachusetts sourceincome, is taxable to a Massachusetts benefi-ciary(ies) if he receives it.

32013 Form 2 — Before You Begin

Who Must File a Massachusetts FiduciaryReturn?Every executor, administrator, trustee, guardian,conservator, trustee in a noncorporate bankruptcyor receiver of a trust or estate that received in-come in excess of $100 that is taxable under c.62 at the entity level or to a beneficiary(ies) andthat is subject to Massachusetts jurisdiction mustfile a Form 2.

What Other Forms Must Be Filed?All applicable U.S. schedules, forms and enclo-sures must be filed with Form 2. A copy of U.S.Schedule K-1 must be enclosed in all cases wherea deduction is taken for the payment of income toa nonresident. The Department has developed anextensive information exchange program that in-cludes the following returns:

1. Form 1, Resident Income Tax Return;

2. Form 1-NR/PY, Nonresident/Part-Year Resi-dent Tax Return;

3. Form M-1310, Statement of Claimant to Re-fund Due on Behalf of Deceased Taxpayer;

4. Form 2, Fiduciary Income Tax Return; and

5. Form M-706, Estate Tax Return.

Discrepancies and nonfilings, except those allowedunder Massachusetts law, will be identified andmay result in an audit or further investigation.

When is Form 2Due?The 2012 Form 2 is due on or before April 15,2014.

Fiscal Year FilersIf permission has been granted to file on a fiscalyear basis, the return is generally due on or beforethe 15th day of the fourth month after the close ofthe fiscal year. Prior consent must be requestedin order to file a return on a fiscal year basis. Anapplication can be made on Form 13. Fiduciariesfailing to obtain prior consent will be placed on acalendar year basis.

Short Year and Fiscal Year FilersFiscal year filers whose fiscal year began in 2013and ended in 2014 should file the 2013 Form 2 re-turn. Short year filers should file using the tax formfor the calendar year within which the short yearfalls. If the short year spans more than one calen-dar year, the filer should file using the tax form forthe calendar year in which the short year began. Ifthe current form is not available at the time theshort year filer must file, the filer should follow therules explained in TIR 11-12.

What Should I Do If I Make aMistake or Leave Something Off MyReturn?If after filing Form 2 you receive an additional taxstatement, such as a W-2 or 1099, or discoverthat an error was made, do not submit a secondtax return. If corrections are necessary, go towww. mass. gov/dor/amend.

What If I Am Unable to Pay?If you are unable to pay the full amount of tax thatyou owe, you should pay as much of your tax lia-bility as possible with your return. You will receivea bill from the Department for the remainingamount of tax due plus accrued interest and pen -alty charges. If the amount of the bill is less than$5,000 and you still cannot pay it in full, you mustapply formally to the Department for a small pay-ment agreement in order to avoid collection activ-ity. Setting up a small payment agreement willallow you to make monthly payments over a setperiod to meet your unpaid liability. You can applyfor a small payment agreement by visiting WebFilefor Income at www.mass.gov/dor.

How Do I Request An Extension?To receive an extension of time to file, you gener-ally must file Form M-8736, and pay the amountof tax you expect to owe on or before the due datefor filing your Massachusetts income tax return.The filing and approval of this form will extend thedue date for six months. Interest is charged on anytax not paid by the original due date.

Note: Your extension will not be valid if you fail topay 80% of your total tax liability through with-holding, estimated tax payments, or with yourMassachusetts Form M-8736.

Exception to Form M-8736 Filing Requirement.Notwithstanding the above, the Commissioner ofRevenue will grant certain fiduciaries an auto-matic six month extension of time to file a tax re-turn, without the need for an application (FormM-8736) by such taxpayer, provided the followingcriteria are met: (1) the taxpayer owes no tax withthe return (including cases where the taxpayer isdue a refund); and (2) 100% of the tax due for thetaxable year has been paid, through one of themeans described below, by the original due datefor filing the return.

For purposes of applying the second criteria, incalculating whether 100% of the tax due for thetaxable year has been paid by the original tax filingdue date, the Commissioner will only consider thefollowing as relevant:

1.Taxes paid through withholding;

2.Timely estimated payments of tax;

3.Credits from the current year return; and

4.Credits forwarded from the previous tax period,but limited only to a refund from the prior tax yearapplied to the next year’s tax liability.

For more information, see TIR 06-21.

Are Wholly CharitableTrusts/Private FoundationsRequired to File Form 2?Funds held in trust for public charitable purposesare exempt from tax under G.L. c. 62, § 3, if suchincome is currently payable to, or irrevocably setaside for, public charitable purposes. Trustees ofwholly charitable trusts, i.e., trusts with no non-charitable interests, are required to file a Form 2however, even though such trusts’ taxable incomemay be zero. Trustees of split-interest trusts, e.g.,pooled income funds, charitable remainder annu-ity trusts, and charitable remainder unitrusts, areto file a Form 2G, not Form 2.

What Deductions and ExemptionsAre Allowable on the Guardianship/Conservatorship Form 2?Every deduction and exemption that an individualis entitled to take on Form 1 may be claimed by aguardian or conservator on behalf of a ward onForm 2. Supporting documentation must be en-closed, including all applicable schedules fromU.S. Form 1040, e.g., Schedule A, Itemized Deduc-tions, if claiming the medical expense exemption.

Generally, deductions may be used only against5.25% income. See Schedule C-2 for the limitedcircumstances under which deductions may beapplied against interest (other than interest fromMassachusetts banks), dividends, and capital gainincome. Any deduction or exemption claimedmust be entered first on Form 2, line 10, and thenon line 17, line 26, and line 34, as appropriate;lines typically used by an estate or trust to claiman income distribution deduction. Such deductionis not allowable to a guardianship or conservator-ship, however, thus, these lines are available to aguardian or conservator for claiming deductionsand exemptions on behalf of a ward. Any deduc-tion or exemption claimed must be explained via asupporting statement attached to the Form 2. Thepreprinted language on lines 10, 17, 26, and 34should be crossed out and the words “see sup-porting statement” should be added.

Should I Be Making Estimated TaxPayments?Generally, every fiduciary receiving income taxableat the entity level must make estimated tax pay-ments on Massachusetts Form 2-ES, if the entityexpects to owe more than $400 in taxes for thetaxable year. Estimated tax payments made by afiduciary on behalf of a beneficiary of a pooled in-

4 2013 Form 2 — Before You Begin

come fund, charitable remainder annuity trust,charitable remainder unitrust, or on behalf of anon-resident grantor of a grantor-type trust or anonresident entity beneficiary that is a trust orother entity also must be made on Form 2-ES.Fiduciaries required to deduct and withhold pay-ments under G.L. c. 62, § 10(g) on behalf of a non-resident individual beneficiary, in contrast, mustmake estimated tax payments on the beneficiary’sbehalf on Form 1-ES. For more information, seeDOR Directive 07-4.

Fiduciaries filing Form 2 with total net taxable in-come of $50,000 or more must make all estimatedtax payments by electronic means. Fiduciaries withincome less than the above cited threshold maymake payments electronically as well, but are notrequired to. Generally, the first payment vouchermust be filed on or before April 15 of the taxableyear. The estimated tax may be paid in full with thefirst payment voucher or in four installments onor before April 15, June 15, September 15 of thetaxable year, and January 15 of the following year.Fiscal year taxpayers must file their first paymentvoucher on or before the 15th day of the fourthmonth of the fiscal year. The estimated tax may bepaid in full with the first payment voucher or in fourequal installments on or before the 15th day of thefourth, sixth, and ninth months of the fiscal year,and the 15th day of the next fiscal year. Be sure touse the appropriate voucher for each payment andfill in the tax year and date. Whenever a due datefalls on a Saturday, Sunday, or legal holiday, thefiling and payment may be made on the next suc-ceeding business day. Fiduciaries who underpayor fail to pay their estimated taxes may incur apenalty. Form M-2210F, Underpayment of Mass-achusetts Estimated Income Tax for Fiduciaries, isused to compute the additional charge.

Finally, a resident beneficiary subject to tax at thebeneficiary level pursuant to G.L. c. 62, § 10 (h)must make estimated tax payments on his dis-tributable share of the estate or trust income.Such payments are to be made on MassachusettsForm 1-ES. For more information, see DOR Di-rective 07-4.

Can Unused Capital Losses bePassed Through to Beneficiaries?Unused capital losses of an estate or trust are al-locable to the estate’s or trust’s corpus and can beused by the estate or trust itself in future years.These losses cannot be passed through to benefi-ciaries, even in the year of termination.

Does Massachusetts Have a 65 DayElection?No. In determining the amount paid, credited, orotherwise required to be distributed to a benefi-

ciary (lines 3, 8, 13, and 18 of Schedule IDD, In-come Distribution Deduction), Massachusetts hasnot adopted the 65 day election available to estatesand complex trusts federally under Code § 663(b).Therefore, any distribution or portion thereof to abeneficiary made within the first 65 days followingthe close of the 2013 taxable year, treated federallyas having been distributed in 2013, is to be treatedfor Massachusetts purposes in 2013 as accumu-lated income and is taxable at the estate or trustlevel, with one exception. Non-Massachusettssource income accumulated for a vested nonresi-dent beneficiary is not taxable at the estate or trustlevel, but is deductible on Form 2, lines 12, 19,28, or 36, as applicable. Moreover, any distribu-tion or portion thereof to a beneficiary madewithin the first 65 days following the close of the2013 taxable year will be treated in the year ofdistribution, i.e., 2014 as a tax free distribution.

Does the Pass-Through EntityWithholding Program Apply toEstates and Trusts?Although the term “pass-through entity,” as usedin the pass-through entity withholding program,applicable to most pass-through entities and theirnon-resident members or beneficiaries, whichMassachusetts adopted for tax years beginning onor after January 1, 2009, refers to an entity whoseincome, loss, deductions, and credits flow throughto members or beneficiaries for Massachusettstax purposes, such as estates and trusts not taxedat the entity level, most estates and trusts are notrequired to participate in the pass-through entitywithholding program because they are required towithhold under other Massachusetts provisions.See, e.g., G.L. c. 62, § 10(g), requiring trusts andestates to withhold or make estimated paymentson payments to nonresidents, including nonresi-dent grantors of grantor trusts.

For more information on the applicability of thepass-through entity withholding program to trustsand estates, see the Guide for Pass-Through Enti-ties — Including Registration Information. Seealso, 830 CMR 62B.2.2, Pass-Through EntityWithholding.

Line by LineInstructionsLine items without specific instructions are con-sidered to be self-explanatory.

Name of Estate or TrustEnter the exact legal name of the entity. If an estateor trust, refer to the governing instrument. Other

fiduciaries should use the exact legal name astheir appointing court ruled.

Estate or Trust EmployerIdentification NumberEnter the U.S. Employer Identification number. Ifyou do not have one, U.S. Form SS-4, Applicationfor Employer Identification number, should beused to apply for one. If the number is not avail-able at the time of filing, enter “applied for” andthe date you applied in the boxes provided. Do notuse a decedent’s Social Security number for an es-tate. A separate Employer Identification number isrequired for the estate and for each trust entity.

Name and Title of FiduciaryEnter the exact legal name and title of the fidu-ciary. In case of multiple fiduciaries, one name issufficient.

Mailing Address of FiduciaryEnter the mailing address of the fiduciary listedon the first line.

C/oIf the mailing address is the address of a legal firmor of a person other than the fiduciary, that personor firm should be listed on the c/o line.

Company Account NumberIf applicable, enter the company account numberyour firm has assigned to this entity.

Date Entity CreatedEnter the date the trust was created. If filing a re-turn for an estate, enter the date of death. All otherfiduciaries should enter the date of appointment.

Filing StatusSelect all applicable ovals. For example, if you arefiling a first year return for an estate, select theovals for “Decedent’s Estate” and “Initial Return.”If filing an amended return, select the oval for “In-crease in tax,” “No change in tax,” or “Decreasein tax,” as applicable and write “Amended” acrossthe top of the return. Grantor-type trusts shouldfile Form 2G and select the “Consolidated Form2G” oval if also filing Form 2. If filing on a fiscalyear basis, enter your fiscal year’s beginning andending dates in the appropriate boxes at the top ofthe return. If you have elected to file as a QualifiedFuneral Trust (QFT) on U.S. Form 1041-QFT, selectthe oval for “Qualified Funeral Trust.” If you file acomposite Form 1041-QFT, you may also file acomposite Form 2.

Select the oval for “Qualified Funeral Trust” andwrite “Composite QFT” across the top of the re-turn. You must enclose a schedule with a Com-posite QFT Form 2 that includes the following

5Line by Line Instructions

information for each QFT (or separate interesttreated as a separate QFT): (1) the name of theowner or the beneficiary (if you list the name of theowner and that trust has more than one benefi-ciary, you must separate the trust into shares heldby the separate beneficiaries); (2) the type andgross amount of each type of income earned bythe QFT for the tax year (for long-term capitalgains, identify separately the amount of capital gainby holding period); (3) the type of each deductionallocable to the QFT; (4) the tax and paymentsmade for each QFT; and (5) if the QFT was termi-nated during the year, give the date of termination.

Schedule TDS — InconsistentFiling Position PenaltyFill in the oval and attach Schedule TDS, TaxpayerDisclosure Statement, if you are disclosing any in-consistent filing positions. Schedule TDS is avail-able on the DOR website at www. mass. gov/ dor.The inconsistent filing position penalty (see TIR06-5, section IV) applies to taxpayers that take aninconsistent position in reporting income. Thesetaxpayers must “disclose the inconsistency” whenfiling their Massachusetts return. If such inconsis-tency is not disclosed, the taxpayer will be subjectto a penalty equal to the amount of tax attributableto the inconsistency. This penalty is in addition toany other penalties that may apply.

A taxpayer is deemed to have taken an “inconsis-tent position” when the taxpayer pays less tax inMassachusetts based upon an interpretation ofMassachusetts law that differs from the positiontaken by the taxpayer in another state where thetaxpayer files a return and the governing law in thatother state “is the same in all material respects”as the Massachusetts law. The Commissioner ofRevenue may waive or abate the penalty if the in-consistency or failure to disclose was attributableto reasonable cause and not willful neglect.

Member of a Lower-Tier EntityA tiered structure is a pass-through entity that hasa pass-through entity as a member. The term“pass-through entity” refers to an entity whose in-come, loss, deductions and credits flow throughto members for Massachusetts tax purposes, andincludes estates and trusts not taxed at the entitylevel. The term “member” includes beneficiaries ofa pass-through entity. As between two entities, thepass-through entity that is a member is the upper-tier entity, and the entity of which it is a memberis the lower-tier entity. If the estate or trust is amember of another pass-through entity, it shouldanswer “yes” to this question.

Part B IncomeLine 1. Wages, Salaries, Tips,Other Employee CompensationEnter wages, salaries, tips, and other compensa-tion earned and received, and, if applicable, enterthe amount reported as Massachusetts wages onForm W-2. For a decedent’s estate, income in re-spect of a decedent is taxed on Form 2, line 1, inaddition to being taxed on the Form M-706, Mass-achusetts Estate Tax Return, as an asset of theestate. “Income in respect of a decedent” is in-come the decedent had a right to receive prior tohis date of death, but payment of which was madeto the estate after the date of death. Wages,salaries, or other forms of compensation, includ-ing any fixed sum amount attributable to servicesrendered prior to the decedent’s death, are to beincluded on line 1.

Line 2. Taxable Pensions andAnnuitiesIncome from most private pension or annuityplans is taxable in Massachusetts; however, in-come from a contributory annuity, pension, endow -ment or retirement fund of the U.S. government,the Commonwealth of Massachusetts or its polit-ical subdivisions, or any noncontributory pensionor survivorship benefits from the United Statesuniformed services (Army, Navy, Marine Corps, AirForce, Coast Guard, commissioned corps of theU.S. Public Health Service and National Oceanicand Atmospheric Administration) is exempt. Mass-achusetts allows a deduction for contributory pen-sion income received from another state or one ofits political subdivisions that does not tax such in-come from Massachusetts or its political subdivi-sions. For guidelines on determining which statepensions are exempt in Massachusetts, see TIR95-9. Enter the fully taxable amounts receivedfrom pension or annuity plans on line 2. Amountsdistributed from an IRA or Keogh plan should alsobe reported on line 2.

Line 3. Business/Profession orFarm Income or LossEnter on line 3 the amount of income or loss froma business or profession from MassachusettsSchedule C, line 31 or 33. Also, enclose Mass-achusetts Schedule C with this return. Note: U.S.Sched ules C or C-EZ are no longer allowed as asubstitute for the Massachusetts Schedule C. Forentities engaged in operating a farm business,enter on line 3 the amount of income or loss fromoperating such business from U.S. Schedule F, line34. Enclose a copy of U.S. Schedule F. Additionally,complete and enclose a pro-forma U.S. Schedule

F to report Massachusetts differences, if any, suchas bonus depreciation.

Line 4. Rental, Royalty and REMICIncome or LossRental, Royalty, and Real Estate Mortgage Invest-ment Conduit (REMIC) residual income are gen-erally taxable in Massachusetts. Enter the amountfrom Massachusetts Form 2, Schedule E, line 4.Enclose Massachusetts Schedule E. Enter and ex-plain any differences between total rental, royalty,and REMIC income on the U.S. Schedule E andthe Massachusetts Schedule E. Possible differ-ences include part-year residency, trust provi-sions, deductible royalties from approved U.S.energy conservation plants, passive losses, and“bonus” depreciation. See the MassachusettsSchedule E instructions for further details of pos-sible differences in reporting rental, royalty, andREMIC income or loss.

Line 5. Interest from MassachusettsBanksEnter in line 5 the total amount of interest receivedor credited to deposit accounts (term and timedeposits, including certificates of deposit, savingsaccounts, savings shares, and NOW accounts) inall savings banks, cooperative banks, savings andloan associations, or credit unions located inMassachusetts. All other interest, unless exempt,should be entered on Schedule B, line 1.

Line 6. Other 5.25% IncomeOther 5.25% income not reported elsewhere mustbe included here. Items reported here include:partnership and S corporation income or loss;gambling winnings from lotteries, raffles, races orother events of chance, wherever held; fair marketvalue of prizes and awards; lump-sum distribu-tions from qualified employee benefit plans in ex-cess of employee’s contributions; and any othermiscellaneous income. Income received by aMassachusetts trust or estate from sources notpreviously subject to Massachusetts jurisdiction ortaxed in Massachusetts is reportable on the Form2 as follows. Sources not previously subject toMassachusetts taxation include non-Massachu-setts estates, trusts, and partnerships, wherever lo-cated. Enter the income or loss from these entitieson the appropriate lines on Form 2 and ScheduleD, according to the character and source of in-come. If no other line applies, enter the income orloss from these entities on line 6 of Form 2.

Line 8. Deductions AllowedDecedentsThe amount of any deduction attributable to adecedent that is not properly allowable to thedecedent as a deduction on the income tax return

6 2013 Form 2 — Line by Line Instructions

for the taxable period in which his death occurs,or any prior period, shall be specifically allowedas a deduction on this line, provided the estate ofthe decedent is liable to discharge the obligationfor which the deduction relates. The following de-ductions are allowed if attributable to the decedentand paid after the decedent’s date of death (en-close a copy of Form 1 or 1-NR/PY):

1.Amounts paid into Social Security (FICA), Rail-road, U.S. or Massachusetts Retirement Systemsare deductible up to a maximum of $2,000. Pay-ments to an IRA, Keogh, Simplified EmployeePension Plan (SEP), or Savings Incentive MatchPlan for Employees (SIMPLE) Account are notdeductible.

2. Amounts paid to someone to care for one (ormore) qualified child under age 13, or for a dis-abled dependent(s), or spouse so that the dece-dent could work or look for work, are deductibleas an employment related expense up to a maxi-mum of $4,800 if there is one qualifying individ-ual or $9,600 if there are two or more qualifyingindividuals.

3.A deduction of $3,600 for one or $7,200 for twoor more dependent members of the decedent’shousehold under age 12, or dependent age 65 orover (not the decedent or his spouse), or disableddependent at the close of the taxable year in whichthe decedent’s death falls. This deduction may onlybe claimed as long as the employment-related ex-pense deduction discussed above is not claimed.

4.Amounts paid for rent for the decedent’s princi-pal residence are deductible equal to 50% of therent paid during the taxable year, up to a maxi-mum of $3,000. Enclose a supplemental statementlisting the landlord’s name(s) and address(es),dates rented, and amount(s) of rent paid for eachresidence.

5. The deduction for unreimbursed travel andtransportation expenses incurred by any employeeand unreimbursed gifts, entertainment, and otheremployee business expenses incurred by em -ployees who solicit business for an employer awayfrom the employer’s place of business are allowed,but only if the decedent itemizes deductions on hisU.S. income tax return and only for amounts thatexceed 2% of U.S. adjusted gross income. Theamount an employee is reimbursed for businessexpenses continues to be an allowable deduction.

6. A penalty charge for early withdrawal of sav-ings and interest is deductible but only if the in-terest that the penalty is related to is reported onForm 2.

7. Amounts paid to a former spouse during thetaxable year for alimony or separate maintenancepursuant to a court decree, or for excess alimonyamounts recaptured, as reported on U.S. Form

1040, line 31a. Alimony payments specified aschild support are not deductible.

8. In addition, certain federal deductions are al-lowed including: interest payments due and paidon qualified student loans; qualified moving ex-penses paid or incurred with the commencementof work at a new principal place of work; businessexpenses of state and local government employeeswho are compensated on a fee basis; jury dutypay surrendered by the decedent to his employer;and contributions to a Medical Savings Accountby the decedent as an employee of a small busi-ness or as a self-employed individual.

Line 10. Income DistributionDeductionEnter on line 10 the amount reported on line 5 ofSchedule IDD, Income Distribution Deduction.

Guardianships/ConservatorshipsEnter on line 10 deductions and exemptionsclaimed on behalf of a ward. Any deduction or exemption claimed must be explained via a sup-porting statement attached to the Form 2. Thepreprinted language on line 10 should be crossedout and the words “see supporting statement”should be added.

Line 12. Nonresident/CharitableDeductionWith one exception, the deductions under G.L. c.62, § 3.B(a)(1) and (2) for Part B 5.25% incomeaccumulated or irrevocably set aside for vestednonresident beneficiaries and or charities are al-lowed on line 12. Massachusetts source incomeaccumulated for vested nonresident beneficiariesis not deductible on line 12 however, but is tax-able at the fiduciary level.

Note: Amounts actually paid to vested nonresidentbeneficiaries and or charities are not reportableon line 12. Rather, they are to be included as partof the income distribution deduction calculationand, thus, are reportable, as appropriate, on lines2 through 5 of Schedule IDD, Part 1. Enter on line12 the amount of Part B 5.25% income includedin line 11 accumulated or irrevocably set aside forvested nonresident beneficiaries and or charities.Do not include on line 12 any Massachusettssource income accumulated for vested nonresi-dent beneficiaries or any amounts actually paid tovested nonresident beneficiaries and or charities.

Part A Interest andDividend IncomeLine 14. Part A 5.25% Interest &Dividend IncomeEnter amount from Form 2, Schedule B, line 39.See Schedule B instructions for detailed informa-tion. Complete and enclose Schedule B.

Line 15. Part A 5.25% CommonTrust Fund Interest & DividendIncomeEnter the amount of Part A 5.25% interest and div-idend income received from common trust funds,including any unrelated business taxable Part A5.25% interest and dividend income.

Line 17. Income DistributionDeductionEnter on line 17 the amount reported on line 10 ofSchedule IDD, Income Distribution Deduction.

Guardianships/ConservatorshipsEnter on line 17 deductions and exemptionsclaimed on behalf of a ward. Any deduction or ex-emption claimed must be explained via a support-ing statement attached to the Form 2. Thepreprinted language on line 17 should be crossedout and the words “see supporting statement”should be added.

Line 19. Nonresident/CharitableDeductionWith one exception, the deductions under G.L. c.62, § 3.A(a)(1) and (2) for Part A 5.25% incomeaccumulated or irrevocably set aside for vestednonresident beneficiaries and or charities are al-lowed on line 19. Massachusetts source incomeaccumulated for vested nonresident beneficiariesis not deductible on line 19 however, but is tax-able at the fiduciary level.

Note: Amounts actually paid to vested nonresidentbeneficiaries and or charities are not reportable online 19. Rather, they are to be included as part ofthe income distribution deduction calculation andare thus reportable, as appropriate, on lines 7through 10 of Schedule IDD, Part 2.

Enter on line 19 the amount of Part A 5.25% in-come included on line 18 accumulated or irrevo-cably set aside for vested nonresident beneficiariesand or charities. Do not include on line 19 anyMassachusetts source income accumulated forvested nonresident beneficiaries or any amountsactually paid to vested nonresident beneficiariesand or charities.

72013 Form 2 — Line by Line Instructions

Line 22. Tax from TableBased upon the amount on line 21, find the properamount of tax in the table and enter the tax on line22. If line 21 is greater than $24,000, multiply theamount on line 21 by .0525 and enter the resulton line 22. You must use the tax table if line 21 is$24,000 or less.

Part A 12% CapitalGainsLine 23. Part A 12% Capital GainsEnter amount from Form 2, Schedule B, line 40.See Schedule B instructions for detailed informa-tion. Complete and enclose Schedule B.

Line 24. Part A 12% Short-TermCommon Trust Fund Capital GainsEnter the amount of Part A 12% short-term capi-tal gains received from common trust funds, in-cluding any unrelated business taxable Part A12% short-term capital gain income.

Line 26. Income DistributionDeductionEnter on line 26 the amount reported on line 15 ofSchedule IDD.


Line 28. Nonresident/CharitableDeductionWith one exception, the deductions under G.L. c.62, § 3.A(a)(1) and (2) for Part A 12% capital gainincome accumulated or irrevocably set aside forvested nonresident beneficiaries and or charitiesare allowed on line 28. Massachusetts source in-come accumulated for vested nonresident benefi-ciaries is not deductible on line 28 however, but istaxable at the fiduciary level.

Note: Amounts actually paid to vested nonresidentbeneficiaries and or charities are not reportableon line 28. Rather, they are to be included as partof the income distribution deduction calculationand, thus, are reportable, as appropriate, on lines12 through 15 of Schedule IDD, Part 3.

Enter on line 28 the amount of Part A 12% capitalgain income included on line 27 accumulated orirrevocably set aside for vested nonresident bene-ficiaries and or charities. Do not include on line

28 any Massachusetts source income accumu-lated for vested nonresident beneficiaries or anyamounts actually paid to vested nonresident bene-ficiaries and or charities.

Part C 5.25%Capital GainsLine 31. Part C 5.25% Long-TermCapital GainsEnter amount from Form 2, Schedule D, line 18.See Schedule D instructions for detailed informa-tion. Complete and enclose Schedule D.

Line 32. Part C 5.25% Long-TermCommon Trust Fund Capital GainsEnter the amount of Part C 5.25% long-term cap-ital gains received from common trust funds in-cluding any unrelated business taxable Part C5.25% long-term capital gain income.

Line 34. Income DistributionDeductionEnter on line 34 the amount reported on line 20 ofSchedule IDD.


Line 36. Nonresident/CharitableDeductionWith one exception, the deductions under G.L. c.62, § 3.C(a)(1) and (2) for Part C 5.25% long-termcapital gain income accumulated or irrevocablyset aside for vested nonresident beneficiaries andor charities are allowed on line 36. Massachusettssource income accumulated for vested nonresi-dent beneficiaries is not deductible on line 36however, but is taxable at the fiduciary level.

Note: Amounts actually paid to vested nonresidentbeneficiaries and or charities are not reportableon line 36. Rather, they are to be included as partof the income distribution deduction calculationand are thus reportable, as appropriate, on lines17 through 20 of Schedule IDD, Part 4.

Enter on line 36 the amount of Part C 5.25% long-term capital gain income included on line 35 ac-cumulated or irrevocably set aside for vestednonresident beneficiaries and or charities. Do notinclude on line 36 any Massachusetts source in-come accumulated for vested nonresident benefi-

ciaries or any amounts actually paid to vestednonresident beneficiaries and or charities.

Line 39. Credit RecaptureIf any Brownfields Credit (BC), Economic Oppor-tunity Area Credit (EOA), Low-Income HousingCredit (LIH), or Historic Rehabilitation Credit (HR)property is disposed of or ceases to be in qualifieduse prior to the end of its useful life, the differencebetween the credit taken and the total credit al-lowed for actual use must be added back to thetax and reported on line 39. Complete and encloseSchedule H-2, Credit Recapture and fill in the ap-propriate oval(s) on line 39.

Line 40. Additional Tax onInstallment SaleAn addition to tax applies for taxpayers who havedeferred the gain, and the tax associated with thatgain, on certain installment sales. This addition totax is measured by an interest charge on the taxthat has been deferred.

Enter on line 40 an additional tax, measured by aninterest charge on the deferred tax, on gain fromcertain installment sales with a sales price over$150,000 if you are not a dealer and the aggre-gate face amount of installment obligations aris-ing during the tax year and outstanding as of theclose of the tax year exceeds $5 million. For moreinformation see G.L. c. 62C, § 32A (a) and I.R.C.§ 453A (a)–(c).

Also, include on line 40 an additional tax amountmeasured by an interest charge on the deferredgain from the installment sale of timeshares andresidential lots, if the sale meets one of the follow-ing criteria: 1) the sale is of a timeshare right for 6weeks or less; 2) the sale is for the recreational useof specified campgrounds; or 3) the sale is for aresidential lot and neither the dealer nor someonerelated to the dealer is obligated to make any im-provements on the lot. For more information seeG.L. c. 62C, § 32A (b) and I.R.C. § 453(l)(2)(B).

To the extent practicable, Massachusetts followsfederal income tax rules in determining the de-ferred gain from installment sales subject to theinterest-charge addition to tax. For more informa-tion visit DOR’s website at www.mass.gov/dor andInternal Revenue Service Publication 537.

Line 42. Credit for Income TaxesDue to Other JurisdictionsThis credit is available to resident beneficiaries andto resident estates and trusts. It is not available topooled income funds, charitable remainder annu-ity trusts, or charitable remainder unitrusts. If anyof the income reported on this return is subject totaxation in another state or jurisdiction and youhave filed a return and paid taxes in the other state


or jurisdiction, complete Form 2, Schedule F, Creditfor Income Taxes Due to Other Jurisdictions, andenter the amount of credit allowed (from line 7 ofSchedule F) on line 42 of Form 2. Do not includetaxes paid to the U.S. government or local or citytaxes. Enclose Schedule F. The total credit whichyou calculate on Schedule F is the smaller of theamount of taxes due to other jurisdictions (net ofcertain adjustments) or the portion of your Mass-achusetts tax due on your gross income that istaxed in such other jurisdictions. Credit is notgiven for a property tax due to another jurisdictionon account of capital stock or property. This doesnot refer to a tax on gain or income from the saleof capital stock or property, as included on Form 2,Schedule B or D however. Credit is also not givenfor any interest and penalties paid on a tax due toanother jurisdiction.

Line 43. Lead Paint CreditA credit for up to $1,500 for each residential unit isgiven for expenses incurred for removing or cov-ering lead paint on residential premises in Mass-achusetts. A seven-year carryover of any unusedcredit is provided. A credit is allowed for interimcontrols, abatement measures that have beentaken pending the complete removal of lead paint,for up to $500 per dwelling unit. This $500 amountis counted towards the $1,500 limit. Strict regula-tions govern who can cover or remove lead paint.The basic rules are explained in MassachusettsSchedule LP, Credit for Removing or CoveringLead Paint on Residential Premises. If you qualifyfor the credit, complete Massachusetts ScheduleLP and enter the amount of the credit on line 43.Enclose Schedule LP with your return.

Note: Failure to enclose Schedule LP will result inthis credit being disallowed on your tax return andan adjustment of your reported tax.

Line 44. Economic Opportunity AreaCredit/Economic DevelopmentIncentive ProgramThe Economic Opportunity Area Credit. Mass-achusetts allows a credit equal to 5% of the cost ofqualifying property purchased for business usewithin an Economic Opportunity Area (EOA). If youqualify for the credit, fill in the appropriate oval,complete Massachusetts Schedule EOAC and enterthe amount of the credit on line 44. Enclose Sched-ule EOAC with your return. Note: Failure to encloseSchedule EOAC will result in this credit being dis-allowed on your tax return and an adjustment ofyour reported tax.

The Economic Development Incentive Program(EDIP) Credit is a tax credit under G.L. c. 62, § 6(g)and G.L. c. 63, § 38N equal to a percentage of the

cost of property purchased for business use withina certified project as defined in G. L.c. 23A, § 3A.

To be eligible for the EDIP credit the project musthave been certified on or after January 1, 2010. Aspart of the project certification the Economic As-sistance Coordinating Council (EACC) may, but isnot required to, award an EDIP credit under theprogram and, when an EDIP credit is awarded, theEACC will determine the percentage of the cost ofproperty to be used in determining the credit.

Taxpayers with ongoing projects that were certi-fied prior to January 1, 2010 may be eligible forcredits under the prior version of the EconomicDevelopment Incentive Program; such taxpayersdo not file schedule EDIP (see TIR 10-01 andSchedule EOAC).

The EACC may also, in consultation with DOR,limit (but not expand) the credit to a specific dol-lar amount or time duration or in any other man-ner deemed appropriate by the EACC. St. 2009, c.166, § 18. For more information, see TIRs 10-15and 10-1.

If you qualify for the EDIP credit, fill in the appro-priate oval, complete Schedule EDIP and enter theamount of the credit on line 44. Also, be sure toenter the EACC issued certificate number in thespace provided on line 44.

Line 45. Brownfields CreditThe Brownfields credit is a transferable credit al-lowed to taxpayers or nonprofit organizations thatincur eligible costs to remediate oil or hazardousmaterials on property that is owned or leased forbusiness purposes and located in an economi-cally distressed area. The credit may be either50% or 25% (if the site is subject to an activityand use limitation) of the “net response and re-moval costs” incurred. Recent legislation extendsthe Brownfields credit, previously scheduled toexpire on August 5, 2013, for five additional years.As a result of the recent legislation, the environ-mental response action commencement cut-offdate has been extended to August 5, 2018, and thetime for incurring eligible costs that qualify for thecredit has been extended to January 1, 2019. SeeTIR 13-15 for more information. To qualify for thiscredit, you must complete and submit Form BCA,Brownfields Credit Application. Upon approval ofthe application, DOR will issue a certificate numberon Form BCC, Brownfields Credit Certificate. Besure to enter the DOR issued certificate number inthe space provided on line 45. Note: Failure to enterthe certificate number will result in this credit beingdisallowed on your tax return and an adjustmentof your reported tax. Enter the number from left toright. Certificate application forms and additionalinformation are available at www.mass.gov/dor.

Line 46. Low-Income HousingCreditA low-income housing credit is available to tax-payers. The Department of Housing and Commu-nity Development will allocate the low-incomehousing credit from a pool of available creditsgranted under § 42 of the Code among qualifiedlow-income housing projects. A taxpayer allocateda federal low-income housing credit also may beeligible for a state credit based on the creditamount allocated to a low-income housing projectthat the taxpayer owns. A five-year carryforward ofunused credit is allowed. See TIR 99-19 for moreinformation. If you qualify for this credit, enter theamount of the credit on line 46. Also, enter thebuilding identification number in the space pro-vided on line 46. Note: Failure to enter the buildingidentification number will result in this credit beingdisallowed on your tax return and an adjustmentof your reported tax.

Line 47. Historic RehabilitationCreditEffective for tax years beginning on January 1,2005 and ending on or before December 31, 2017,taxpayers may be eligible for the Historic Rehabil-itation Credit (HRC). To claim this credit, a his-toric rehabilitation project must be completed andcertified by the Massachusetts Historical Commis-sion. Unused portions of the credit may be carriedforward for 5 years. The credit may be transferredor sold to another taxpayer. The HRC is not sub-ject to the 50% limitation rule for corporate tax-payers. If the taxpayer disposes of the propertygenerating the HRC, a portion of the credit maybe subject to recapture. For further information,see TIR 10-11 and 830 CMR 63.38R.1, Mass-achusetts Historic Rehabilitation Credit. If youqualify for this credit, enter the amount of thecredit on line 47. Also, enter the certificate numberin the space provided on line 47. Note: Failure toenter the certificate number will result in thiscredit being disallowed on your tax return and anadjustment of your reported tax.

Line 48. Film IncentiveFor tax years beginning on or after January 1, 2006and before January 1, 2023, motion picture pro-duction companies may claim (1) a credit equal to25% of the total qualifying aggregate payroll foremploying persons within the Commonwealth inconnection with the filming and production of amotion picture and (2) a credit equal to 25% oftheir Massachusetts production expenses. Eachcredit has its own qualification requirements anda taxpayer is allowed to qualify for and claim bothcredits. The credits are also transferable. For moreinformation, see TIR 07-15. If you qualify for thiscredit, enter the amount of credit on line 48. Also,



enter the Department of Revenue issued certificatenumber in the space provided on line 48. Note:Failure to enter the certificate number will result inthis credit being disallowed on your tax return andan adjustment of your reported tax.

Note: Motion picture production companies qual-ify to elect a refundable film credit if they have nottransferred or carried forward a portion of the filmcredit for the production/certificate number to berefunded. If you qualify for this election, enter theamount from line 5 of Schedule RFC, RefundableFilm Credit, in line 60 of Form 2, but only if takingthe credit at the estate or trust level. If passing thecredit out to a beneficiary(ies), see instructionsfor line 60 below.

Line 49. Medical Device CreditMedical device companies that develop or manu-facture medical devices in Massachusetts canclaim a credit equal to 100% of the user fees paidby them when submitting certain medical deviceapplications and supplements to the United StatesFood and Drug Administration. The credit is alsotransferable. For more information, see TIR 06-22.If you qualify for this credit, enter the amount ofcredit on line 49. Also, enter the Department ofRevenue issued certificate number in the spaceprovided on line 49. Note: Failure to enter the certificate number will result in this credit beingdisallowed on your tax return and an adjustmentof your reported tax. Certificate application formsand additional information are available atwww.mass.gov/dor.

Line 50. Employer WellnessProgram Tax CreditEffective for tax years beginning on or after Janu-ary 1, 2013, a Massachusetts business that em-ploys 200 or fewer workers may qualify for a taxcredit of up to 25% of the cost of implementing a“certified wellness program” for its employees. Ataxpayer seeking to claim the credit must apply tothe Department of Public Health (DPH) for certifi-cation of its wellness program. DPH will approvea dollar amount of credit for a qualifying taxpayerand issue a certificate number to be provided inconnection with filing a tax return in order to claimthe credit. The amount of the credit that may beclaimed by a taxpayer cannot exceed $10,000 inany tax year. DPH has promulgated a regulation,105 CMR 216.000, Massachusetts Wellness TaxCredit Incentive, which sets forth criteria for au-thorizing and certifying the credit. The credit isset to expire on December 31, 2017. If you qualifyfor this credit, enter the amount of credit on line50. Also, enter the DPH issued certificate numberin the space provided on line 50. Note: Failure toenter the certificate number will result in this

credit being disallowed on your tax return and anadjustment of your reported tax. Certificate applica-tion forms and additional information are availableat www.mass.gov/dor.

Line 52. Credits Passed Through toBeneficiariesThe credits reported on lines 42 through 50 maybe passed through to beneficiaries on line 52 andthe applicable lines on Schedule 2K-1. Alterna-tively, they may be taken at the estate or trust levelon line 53. These alternatives are mutually exclu-sive. If credits are passed through to a beneficiary,any credits that cannot be applied in the taxableyear for which a carryover is allowed may be car-ried over and applied against the beneficiary’spersonal income tax liability in succeeding taxableyears. Carryovers may not be claimed at the es-tate or trust level in such cases.

Line 53. Credits Remaining withFiduciaryIf the credits reported on lines 42 through 50 aretaken at the estate or trust level on line 53, anycredits that cannot be applied in the taxable yearfor which a carryover is allowed may be carriedover and applied against the estate’s or trust’s in-come tax liability in succeeding taxable years. Un-used credits may not be passed through tobeneficiaries on line 52. Either the fiduciary or thebeneficiaries may take the credits, but not both.

Line 55. Massachusetts Income TaxWithheldMassachusetts income taxes withheld under theEmployer Identification number of the estate ortrust, as indicated on your copies of Forms W-2,W-2G, 1099-G, and 1099-R, should be includedon line 55 only if not passed through to a benefi-ciary(ies) on Schedule 2K-1, line 27. Be sure youattach copies of these forms to the left-hand mar-gin of the front of your return; otherwise yourclaim of amounts withheld will not be allowed. Ifyou have lost a form, ask the payer for a duplicate.Copies of Forms 1099-G and 1099-R need onlybe attached if they show an amount for Mass-achusetts tax withheld. For more information, seeinstructions for Schedule 2K-1, line 27.

Line 57. 2013 MassachusettsEstimated Tax PaymentsEnter the total amount of Massachusetts Form2-ES, estimated tax payments made for 2013 online 57. Do not include on line 57 estimated taxpayments made on Form 1-ES or Form 2-ES onbehalf of beneficiaries or the amount in line 56.See Directive 07-4.

Line 58. Payments Made withExtensionIf an Application for Extension of Time to File Fidu-ciary or Partnership Return, Massachusetts FormM-8736, was made for 2013 on or before the duedate of the return, enter in line 58 the amount paidwith Massachusetts Form M-8736. An extensionof time to file does not extend the due date forpayment of the tax. Any tax not paid on or beforethe due date, without regard to the extension, willbe charged interest. Any tax not paid within theextended period is subject to a penalty of 1% permonth, up to a maximum of 25% from the duedate of the return.

Line 59. Payment with OriginalReturnUse this line only if you are amending the originalreturn. Enter in line 59 the amount of tax you paidwith the original return from line 67, “Tax Due.” Ifestimated tax payments were made on the origi-nal return, they should be reflected on line 57, ason the original return. Select the appropriateamended return oval on page 1. Complete the en-tire return, correct the appropriate line(s) with thenew information and recompute the tax liability.On an enclosed sheet, explain the reason for theamendment(s) and identify the line(s) andamount(s) being changed on the amended return.If the change reduces the tax liability, encloseForm CA-6, Application for Abatement/AmendedReturn, and a copy of the return that you originallyfiled. Mail the amended return, with Form CA-6 ontop, to: Massachusetts Department of Revenue,PO Box 7031, Boston, MA 02204. If you owe ad-ditional tax, mail the amended Form 2 to: Mass-achusetts Department of Revenue, PO Box 7018,Boston, MA 02204.

Line 60. Refundable Film CreditMotion picture production companies qualify toelect a refundable film credit if they have not trans-ferred or carried forward a portion of the filmcredit for the production/certificate number to berefunded. Transferees of the film credit do notqualify for the refundable film credit. Transfereesshould claim their credit on Schedule Z, line 7.

If an election to refund the film credit for a pro-duction/certificate number is made, the entire filmcredit remaining after reducing the tax liability andother credits will be refunded at 90%. A motionpicture production company that elects to claim arefund of the film credit is not permitted to seek apartial refund and a partial transfer or carryover ofthe credit. However, the refund can be applied asan estimated payment for the subsequent tax year.

The refundable film credit may be taken at the es-tate or trust level on line 60 or passed through to


a beneficiary(ies) on line 24 of Schedule(s) 2K-1.Enter in line 60 any amount of refundable filmcredit from Schedule RFC, Refundable Film Credit,line 5, to be claimed at the estate or trust level.Enclose Schedule RFC with your return. Note:Failure to enclose Schedule RFC will result in thiscredit being disallowed on your tax return and anadjustment of your reported tax.

Note: If the credit is to be passed through to a ben-eficiary(ies), “0” should be entered on line 60 andthe words “flowed through to beneficiary(ies)”should be noted on the dotted line.

Line 61. Refundable Dairy CreditThe Massachusetts dairy farmer tax credit was es-tablished to offset the cyclical downturns in milkprices paid to dairy farmers and is based on theU.S. Federal Milk Marketing Order for the applica-ble market. A taxpayer who holds a certificate ofregistration as a dairy farmer pursuant to G.L. c.94, s. 16A is allowed a refundable tax credit basedon the amount of milk produced and sold. The re-fundable dairy credit may be taken at the estate ortrust level on line 61or passed through to a bene-ficiary(ies) on line 25 of Schedule(s) 2K-1. Enterin line 61 the amount of refundable dairy creditfrom the Department of Agricultural Resources’Dairy Farmer Certified Tax Credit Statement to beclaimed at the estate or trust level. Also, enter theDepartment of Agricultural Resources-issued cer-tificate number in the space provided on line 61.Note: Failure to enter the certificate number on line61 will result in this credit being disallowed on yourtax return and an adjustment of your reported tax.


Line 62. Refundable ConservationLand Tax CreditEffective for tax years beginning on or after Janu-ary 1, 2011, a credit is allowed for qualified do -nations of certified land to a public or privateconservation agency. The credit is equal to 50% ofthe fair market value of the qualified donation. Theamount of the credit that may be claimed by a tax-payer for each qualified donation cannot exceed$50,000. The credit is refundable but not transfer-able. The certification process is conducted by theExecutive Office of Energy and Environmental Af-fairs (“EEA”). EEA has promulgated a regulation,301 CMR 14.00, entitled Conservation Land TaxCredit, which sets forth criteria for authorizing andcertifying the credit. See also, 830 CMR 62.6.4,entitled Conservation Land Tax Credit, promul-gated by DOR to explain the calculation of the al-lowable credit.

The refundable conservation land tax credit maybe taken at the estate or trust level on line 62 orpassed through to a beneficiary(ies) on line 26 ofSchedule(s) 2K-1. Enter in line 62 the amount ofrefundable conservation land tax credit to beclaimed at the estate or trust level. Also, enter theDOR-issued certificate number in the space pro-vided on line 62. Note: Failure to enter the certifi-cate number on line 62 will result in this creditbeing disallowed on your tax return and an adjust-ment of your reported tax.


Line 65. Amount of Overpayment tobe Applied to 2014 MassachusettsEstimated TaxesEnter the amount of the 2013 overpayment fromline 64 that you want applied to your 2014 Mass-achusetts estimated taxes.

Line 66. Amount of RefundSubtract line 65 from line 64, and enter the resultin line 66. This is the amount of your refund.

Line 67. Tax DueIf line 54 is larger than line 63, subtract line 63from line 54, and enter the result on line 67. In-clude in line 67 any additional payment for interestand/or penalty(ies) as described below. Pay thisamount in full with the return when filed. Go towww.mass.gov/dor/payonline for online paymentoptions. If you need to mail your payment, makethe check or money order payable to the Common-wealth of Massachusetts and write the estate ortrust Employer Identification number on the frontof the check or money order in the lower left frontcorner. Enclose the check or money order andForm 2-PV, Massachusetts Fiduciary Income TaxPayment Voucher, with your return. Form 2-PVmust be included with your check or money orderto ensure proper crediting of your account.

InterestIf you fail to pay the tax when due, interest will becharged. For an explanation of how interest is com-pounded in Massachusetts, see TIR 92-6 or callthe Customer Service Bureau at (617) 887-MDORor toll-free, in Massachusetts at 1-800-392-6089.

Penalty for Late PaymentThe penalty for late payment is 1% of the tax due,per month (or fraction thereof) up to a maximumof 25%.

Penalty for Failure to FileThe penalty for failure to file a tax return by thedue date is 1% of the tax due, per month (or frac-tion thereof) up to a maximum of 25%.

Penalty for Protested (“Bad”) CheckIf any check sent in payment of tax or other chargeis not honored by your bank because of insuffi-cient funds or for any other reason, a penalty of$30 or the amount of the payment, whichever isless, may be charged.

Federal (Audit) Change PenaltyIf the U.S. Internal Revenue Service changes a taxreturn for a prior year (generally through audit),file an amended Form 2 together with any requiredschedules or additional payments within one yearof the final federal determination to avoid apenalty. The penalty is equal to 10% of the addi-tional tax due. Remember to select the appropri-ate amended return oval on page 1 of Form 2. Ifthe change indicates a refund, file MassachusettsForm CA-6, Application for Abatement/AmendedReturn, within one year.

Addition for underpayment of estimated taxIf withholding and/or estimated tax payments donot equal 80% of the total tax liability required tobe paid, an addition to tax will generally apply ifyour 2013 tax due after credits and withholding isgreater than $400. If you failed to meet these re-quirements, you must complete and encloseMassachusetts Form M-2210F to calculate theamount of penalty you must add to line 67, or toshow which exception applies. Most taxpayerswho qualify for an exception made withholdingand/or estimated payments equal to their tax liabil-ity for the previous year. You do not have to com-plete Form M-2210F if the balance due with yourreturn is $400 or less.

Taxpayer’s DeclarationAt least one of the fiduciaries must sign and datethe return, under penalties of perjury. Fiduciariesusing facsimile signatures must follow the proce-dures in DOR Directive 89-9. Staple all state copiesof any Forms W-2, W-2G, and any 1099 withMassachusetts withholding on the front of theForm 2. If making a payment, staple your checkor money order to Form 2-PV. Form 2-PV can befound on the inside front cover of this booklet.

Make the check or money order payable to theCommonwealth of Massachusetts and be sure tosign the check. The estate or trust Employer Iden-tification number should be entered on the frontof the check. Enclose all required U.S. forms andschedules to the back. Please enclose Massachu-setts forms and schedules first, followed byMassachusetts Form M-2210F.

The return, together with payment in full, is due,for calendar year filers on or before April 15, 2014.Fiscal year returns are generally due on the 15thday of the fourth month after the close of the fiscalyear. Mail to: Massachusetts Department of Rev-enue, PO Box 7018, Boston, MA 02204. Directfiduciary inquiries (not returns) to: MassachusettsDepartment of Revenue, Customer Service Bureau,PO Box 7010, Boston, MA 02204. Telephone:(617) 887-MDOR.

Schedule B/RBeneficiary/RemaindermenName of Estate or TrustEnter the exact legal name of the entity. If an estateor trust, refer to the governing instrument. Otherfiduciaries should use the exact legal name astheir appointing court ruled.

Estate or Trust EmployerIdentification NumberEnter the U.S. Employer Identification number. Ifyou do not have one, U.S. Form SS-4, Applicationfor Employer Identification number, should be usedto apply for one. If the number is not available atthe time of filing, enter “applied for” and the dateyou applied in the boxes provided. Do not use adecedent’s Social Security number for an estate. Aseparate Employer Identification number is re-quired for the estate and for each trust entity.

Name of BeneficiaryAs used in this form, “beneficiary” means incomebeneficiary. A “trust income beneficiary” is a benefi-ciary who is entitled to receive the income from thetrust. If filing for other than a trust, enter the nameand address of the person receiving the income.

Name of RemaindermanA remainderman is the person or entity entitled toan estate after the prior estate has expired. In re-turns where taxable stock dividends, taxablegains from the purchase or sale of real estate,tangible and intangible personal property, or divi-dends which are wholly or in part credited to cap-ital have been received by the fiduciary during thetax year covered by this return and in all caseswhere all or part of the taxable income is accumu-lated for remainder interests, Schedule B/R mustinclude the complete name and address of eachremainderman.

Beneficiary’s/Remainderman’sIdentification NumberEnter the Social Security number of the incomebeneficiary or remainderman, if the income bene-ficiary or remainderman is an individual. Enter the

Employer Identification number of the income ben-eficiary or remainderman, if the income beneficiaryor remainderman is an entity.

Legal DomicileA legal domicile is a person’s permanent home.Enter the legal domicile of the income beneficiaryor remainderman.

Total IncomeEnter the dollar amount of the income the benefi-ciary or remainderman received during the tax pe-riod covered by the return.

Percentage of IncomeEnter the percentage of total income that waspaid to/or accumulated for each beneficiary or remainderman.

Percentage of Taxable IncomeIndicate the percentage of total income taxablein Massachusetts for each beneficiary or remainderman.

Income SummaryLine 1. Accumulated IncomeEnter the amount of income accumulated, i.e., re-tained by the entity, for the year.

Line 3. Accumulated Capital GainEnter the amount of capital gain accumulated, i.e.,retained by the entity, for the year.

Schedule BInterest, Dividends and CertainCapital Gains and LossesYou must file Massachusetts Form 2, Schedule Bif you have:

1.dividend income in excess of $1,500;

2.Any interest income other than from Massachu-setts banks taxed at 5.25%;

3.Short-term capital gains or losses;

4.Carryover short-term losses from prior years;

5.Long-term gains on collectibles or pre-1996 in-stallment sales classified as capital gain incomefor Massachusetts purposes;

6.Gains or losses from the sale, exchange, or in-voluntary conversion of property used in a tradeor business;

7.Net long-term capital gains or losses; or

8.Excess exemptions.

“Collectibles” are defined as any capital asset that isa collectible within the meaning of Internal RevenueCode (“Code”) § 408(m), as amended and in effectfor the taxable year. “Collectibles” include works of

art, rugs, antiques, metals, gems, stamps, alco-holic beverages, certain coins, and any other itemstreated as collectibles for federal tax purposes.

You need not fill out Massachusetts Form 2,Schedule B if the only interest income you have isfrom Massachusetts banks. Report it on Form 2,line 5 instead. You must complete MassachusettsForm 2, Schedule B if your interest or dividend in-come includes: dividends taxed directly to trustsor estates on a Form 2, Fiduciary Income Tax Re-turn; distributions that are returns of capital; orexempt portions of any interest or dividends froma mutual fund.

Name of Estate or TrustEnter the exact legal name of the entity. If an estateor trust, refer to the governing instrument. Otherfiduciaries should use the exact legal name as theirappointing court ruled.


Line 1. Total InterestEnter total interest from U.S. Form 1041, line 1 or1041-QFT, line 1a.

Note. Interest from a common trust fund may beexcluded here, provided it is entered on Form 2,line 15. If common trust fund interest is includedin this line, enter the amount on line 7 and onForm 2, line 15.

Line 2. Total DividendsEnter total dividends from U.S. Form 1041, line2a or 1041-QFT, line 2a. Dividends from a com-mon trust fund may be excluded here, providedthey are entered on Form 2, line 15. If commontrust fund dividends are included in this line, enterthe amount on line 7 and on Form 2, line 15.

Line 3. Other Interest andDividendsEnter on line 3 any other interest and dividendsnot included on lines 1 and 2. Line 3 includes suchitems as interest from obligations of other statesand their political subdivisions that are not taxablefederally but are taxable in Massachusetts. Any taxexempt municipal interest, including interest fromall Massachusetts municipalities, should be en-tered here for Schedule H computations.

12 Schedule Instructions

Line 4. Total Interest and DividendsAdd lines 1 through 3 and enter the total on line 4.

Line 5. Interest on U.S. DebtObligationsEnter the total amount of U.S. government obliga-tion interest included on line 4. Interest from obli -gations of the U.S. government are not taxable bythe Commonwealth of Massachusetts.

Line 6. Total Interest fromMassachusetts BanksEnter the total amount of interest from savings inMassachusetts banks included on Form 2, line 5.

Line 7. Other ExclusionsEnter any other interest or dividends to be ex-cluded. A schedule and statement of explanationmust be enclosed. Common trust fund interest ordividends included on lines 1 or 2 must be enteredhere. Any tax-exempt municipal interest enteredon line 3, for Schedule H computations, must beentered here.

Line 8. Total AdjustmentsAdd lines 5 through 7, and enter the total on line 8.

Line 9. SubtotalSubtract line 8 from line 4, and enter the result online 9.

Note: If there are any differences between U.S. andMassachusetts amounts reported on lines 12, 13,14, 18, and 19, be sure to enter the Massachusettsamount and enclose a statement that includes theline item and an explanation of the differences. Ex-clude short-term capital gains received from com-mon trust funds from Form 2, Schedule B andenter short-term capital gains received from com-mon trust funds on Form 2, line 24.

Line 10. Allowable DeductionsFrom Your Trade or BusinessEnter the amount from Massachusetts ScheduleC-2, line 8 if you qualify for an excess trade orbusiness deduction. See the instructions forMassachusetts Schedule C-2.

Line 11. SubtotalSubtract line 10 from line 9, and enter the resulton line 11.

Line 12. Short-Term Capital GainsEnter the total short-term capital gains includedon U.S. Form 1041, Schedule D, Part I, lines 1through 5.

Line 13. Long-Term Capital Gainson Collectibles and Pre-1996Installment SalesEnter the total amount of long-term capital gainson collectibles and pre-1996 installment sales fromMassachusetts Form 2, Schedule D, line 11.

Line 14. Gain on Sale of BusinessPropertyEnter from U.S. Form 4797 the amount of gainfrom the sale, exchange, or involuntary conversionof property used in a trade or business and heldfor one year or less. Be sure to enclose U.S. Form4797 with your return.

Line 15. Gross Interest, Dividendsand Certain Capital GainsAdd lines 12 through 14.

Line 16. Allowable DeductionsFrom Your Trade or BusinessEnter the amount from Massachusetts ScheduleC-2, line 11 if you qualify for an excess trade orbusiness deduction. See the instructions for Mass -achusetts Schedule C-2.

Line 17. SubtotalSubtract line 16 from line 15.

Line 18. Short-Term Capital LossesEnter the total short-term capital losses includedon U.S. Form 1041, Schedule D, Part I, lines 1through 5.

Line 19. Loss on Sale of BusinessPropertyEnter from U.S. Form 4797 the amount of lossfrom the sale, exchange, or involuntary conversionof property used in a trade or business and heldfor one year or less. Be sure to enclose U.S. Form4797 with your return.

Line 20. Prior Years Short-TermUnused LossesYou may use short-term losses accumulated in theprevious taxable years beginning after 1981 in thecomputation of short-term gain or loss for the cur-rent year. Enter here the short-term loss amountfrom your 2012 Massachusetts Form 2, ScheduleB, line 41.

Line 21. SubtotalCombine lines 17 through 20. If a positive amount,omit lines 22 through 25 and go to line 26. If thetotal is a loss, go to line 22.

Line 22. Short-Term Capital LossesApplied Against Interest andDividendsEnter the smaller of line 11 or line 21 (as a positiveamount), but not more than $2,000.

Line 23. SubtotalCombine lines 21 and 22. If line 23 is less than“0”, go to line 24. If line 23 is “0”, omit lines 24through 30 and go to line 31. If Form 2, ScheduleB, line 23 is a loss and Form 2, Schedule D, line 12is a loss, omit line 24, enter the amount from line23 on line 25 and line 41, omit lines 26 through30 and complete lines 31 through 39.

Line 24. Short-Term Capital LossesApplied Against Long-Term CapitalGainsIf Form 2, Schedule B, line 23 is a loss and Form2, Schedule D, line 12 is greater than “0,” enter thesmaller of Form 2, Schedule B, line 23 (consid-ered as a positive amount) or Form 2, ScheduleD, line 12 on Form 2, Schedule B, line 24 and onForm 2, Schedule D, line 13.

Line 25. Short-Term Capital Lossesfor Carryover in 2014Combine lines 23 and 24 and enter the result onlines 25 and 41, omit lines 26 through 29, enter“0” on line 30, and complete lines 31 through 40.

Line 26. Short-Term Capital Gainsand Long-Term Gains on CollectibleEnter the amount from Form 2, Schedule B, line21. If Form 2, Schedule D, line 12 is “0”, or greater,omit line 27 and enter the amount from line 26 online 28. If Form 2, Schedule D, line 12 is a loss goto Form 2, Schedule B, line 27.

Line 27. Long-Term Capital LossesApplied Against Short-Term CapitalGainsIf Form 2, Schedule B, line 26 is greater than “0”,and Form 2, Schedule D, line 12 is a loss, enter thesmaller of Form 2, Schedule B, line 26 or Form 2,Schedule D, line 12 (considered as a positiveamount) on Form 2, Schedule B, line 27 and onForm 2, Schedule D, line 13.

Line 28. SubtotalSubtract line 27 from line 26. If line 28 is “0,” omitline 29 and enter “0” on line 30.

Line 29. Long-Term Gain DeductionIf there is no entry in line 13, enter “0.” If line 13shows a gain, enter 50% of line 13 less 50% ofthe losses on lines 18, 19, 20, and 27, but not lessthan “0.”

132013 Form 2 — Schedule Instructions

Line 30. Short-Term Gains AfterLong-Term Gains DeductionSubtract line 29 from line 28. Not less than “0.”

Line 31. SubtotalEnter the amount from line 11.

Line 32. Short-Term Losses AppliedAgainst Interest and DividendsEnter the amount from line 22. If line 22 is notcompleted, enter “0.”

Line 33. SubtotalSubtract line 32 from line 31. If Form 2, ScheduleD, line 14 is “0” or greater omit line 34 and enterthe amount from line 33 on line 35. If Form 2,Schedule D, line 14 is a loss go to line 34.

Line 34. Long-Term Losses AppliedAgainst Interest and DividendsIf Form 2, Schedule B, line 33 is a positiveamount and Form 2, Schedule D, line 14 is a loss,complete the Long-Term Capital Losses AppliedAgainst Interest and Dividends Worksheet forForm 2, Schedule B, line 34 and Form 2, Sched-ule D, line 15.

Note: Although under TIR 04-23, unused capitallosses of a trust generally are allocable to trust cor-pus and cannot be passed through to beneficiaries,this does not preclude trustees or other fiduciariesfrom claiming on line 34 the deduction allowedunder G.L. c 62, § 2(c)(4) of not more than an ag-gregate amount of $2,000 in Part A capital lossand Part C capital loss against interest and divi-dends included in Part A income.

Line 35. Adjusted Interest andDividendsSubtract line 34 from line 33.

Line 36. Adjusted Gross Interest,Dividends and Certain CapitalGainsAdd lines 30 and 35. Not less than “0.”

Line 37. Expense and FiduciaryCompensation DeductionEnter on 37a the allowable portion of expenses ascomputed on Schedule H, Part 1, line 5. Enter on37b compensation as computed on Schedule H,Part 2, line 18. Enclose a copy of Schedule H.

Line 38. Taxable Interest,Dividends and Certain CapitalGainsSubtract line 37 from line 36. Not less than “0.”

Line 39. Interest and DividendsTaxable at 5.25%If line 38 is greater than or equal to line 11, enterthe amount from line 11 here and on Form 2, line14. If line 38 is less than line 11, enter the amountfrom line 38 here and on Form 2, line 14.

Line 40. Taxable 12% Capital GainsSubtract line 39 from line 38. Not less than “0.”Enter the result here and on Form 2, line 23.

Line 41. Available Short-TermLosses for Carryover in 2014Enter the amount from line 25, only if it is a loss.

Long-Term Capital Losses Applied AgainstInterest and Dividends Worksheet for Form 2,Schedule B, Line 34 and Form 2, Schedule D,Line 15

Complete only if Form 2, Schedule B, line 33 isa positive amount and Form 2, Schedule D, line14 is a loss. Enter all losses as positiveamounts.

1.Enter amount from Form 2, Schedule B,line 31 . . . . . . . . . . . . . . . . . . . . . . . 2.Enter the lesser of line 1 or $2,000 . . . . . . . . . . . . . . . . . . . . . . . 3.Enter the amount from Form 2, Schedule B,line 32 . . . . . . . . . . . . . . . . . . . . . . . 4.Subtract line 3 from line 2. If “0”or lessomit the remainder of worksheet.Otherwise, complete lines 5 and 65.Enter any loss from Form 2, Schedule D,line 14 as a positive amount. Other-wise, enter “0”. . . . . . . . . . . . . . . . . 6. If line 4 is smaller than or equal to line 5,enter line 4 here and on Form 2, Schedule B,line 34 and on Form 2, Schedule D, line 15.If line 4 is larger than line 5, enter line 5 hereand on Form 2, Schedule B, line 34 and onForm 2, Schedule D, line 15 . . . . . .

Schedule DCapital Gains and Losses —Long-Term Capital Gains andLosses Excluding CollectiblesYou must complete Massachusetts Form 2,Schedule D if you had long-term capital gains orlosses from the sale or exchange of capital assetsor from similar transactions which are grantedcapital gain or loss treatment on your U.S. returnor, if you had capital gain distributions. Includegains from all property, wherever located. “Long-term capital gains” are gains on the sale or ex-change of capital assets that have been held formore than one year on the date of the sale or ex-change. “Long term capital losses” are losses onthe sale or exchange of capital assets that have

been held for more than one year on the date ofthe sale or exchange. “Capital gain income” is de-fined as gain from the sale or exchange of a capitalasset. The definition of “capital asset” includes:(1) an asset which is a capital asset under InternalRevenue Code (“Code”) § 1221, or (2) propertythat is used in a trade or business within themeaning of Code § 1231(b), without regard to theholding period as defined in said section.

Significant Differences Between U.S. andMassachusetts Capital Gain Provisions1.Code § 1244 losses reported as ordinary losseson your U.S. return must be reported on Mass-achusetts Form 2, Schedule D;

2. If you made a federal election under § 311 ofthe Tax Relief Act of 1997 to recognize gain onthe deemed sale of a capital asset held on Janu-ary 1, 2001, Massachusetts does not follow thefederal rules at § 311 for determining the basis ofthe asset. See TIR 02-3. If you sold a capital assetin 2012 for which you made a federal § 311 elec-tion, the Massachusetts initial basis will not bethe federal basis. The Massachusetts initial basiswill be determined as of the date the asset wasfirst acquired;

3.Upon the sale of stock of an S corporation, thefederal basis must be modified according toMassachusetts Income Tax Regulation, 830 CMR62.17A.1;

4. Massachusetts has adopted basis adjustmentrules to take into account differences betweenMassachusetts and federal tax laws. For more in-formation regarding basis adjustment rules, seeTIR 88-7; and

5.Net ordinary losses that are itemized deductionson U.S. Schedule A are not allowable.

Installment SalesEffective for sales on or after January 1, 2005,taxpayers who are treated as electing installmentsale treatment federally will automatically betreated as electing Massachusetts installmentsale treatment if the Massachusetts gain for theentire transaction is less than $1 million. Such tax-payers are not allowed to elect out of Massachu-setts installment sales treatment and do not haveto post security with the Commissioner of Rev-enue (“Commissioner”).

In contrast to the above, taxpayers who are treatedas electing installment sale treatment federallymust file a separate Massachusetts installmentsale election and post security with the Commis-sioner if their Massachusetts gain for the entiretransaction is equal to or greater than $1 million.An explanatory statement must be enclosed witheach return for the life of the installment sale. For

14 2013 Form 2 — Schedule Instructions

further information see TIR 04-28 or contact theInstallment Sales Unit at (617) 887-6950.

Note: If you are reporting capital gains on install-ment sales that occurred during January 1, 1996through December 31, 2002, do not file Form 2,Schedule D. Instead, you must file Schedule D-IS,Installment Sales. If you are reporting an install-ment sale occurring on or after January 1, 2003,report those gains on Form 2, Schedule D.

Name of Estate or TrustEnter the exact legal name of the entity. If an es-tate or trust, refer to the governing instrument.Other fiduciaries should use the exact legal nameas their appointing court ruled.

Estate or Trust EmployerIdentification NumberEnter the U.S. Employer Identification number. Ifyou do not have one, U.S. Form SS-4, Applicationfor Employer Identification number, should be usedto apply for one. If the number is not available atthe time of filing, enter “applied for” and the dateyou applied in the boxes provided. Do not use adecedent’s Social Security number for an estate.A separate Employer Identification number is re-quired for the estate and for each trust entity.

Line 1. Long-Term Capital Gainsand LossesEnter the gain or loss included on U.S. Form 1041,Schedule D, lines 8 through 10, column h.

Line 2. Additional Long-TermCapital Gains and LossesEnter the gain or loss included on U.S. Form 1041,Schedule D, line 11, column h.

Line 3. Net Long-Term Gain or Lossfrom Partnerships, S Corporations,Estates, and TrustsEnter the gain or loss included on U.S. Form 1041,Schedule D, line 12, column h.

Line 4. Capital Gain DistributionsEnter the amount of capital gain distributions re-ported to you by a mutual fund or real estate in-vestment trust included on U.S. Form 1041,Schedule D, line 13, column h.

Line 5. Gain From U.S. Form 4797Enter the gain or loss included on U.S. Form 1041,Schedule D, line 14, column h.

Line 6. Massachusetts Long-TermCapital Gains and Losses Includedin U.S. Form 4797, Part IIEnter amounts included on U.S. Form 4797, PartII treated as capital gains or losses for Massachu-setts purposes (not included on lines 1 through 5above). These include ordinary gains from sales ofCode § 1231 property; recapture amounts underCode §§ 1245, 1250 and 1255; Code § 1244losses (losses on small business stock); and theloss on the sale, exchange, or involuntary conver-sion of property used in a trade or business.

Line 7. Carryover Losses fromPrevious YearsIf you have a carryover loss from a prior year, enteron line 7 the amount of carryover loss from your2012 Massachusetts Form 2, Schedule D, line 19.

Line 8. SubtotalCombine lines 1 through 7 and enter the resulton line 8.

Line 9. DifferencesEnter any differences between the gains or lossesreportable for Massachusetts tax purposes and theU.S. gains or losses reported on MassachusettsForm 2, Schedule D and U.S. Form 4797, Part II.Enter the amount of common trust fund gain in-cluded on line 8. This amount would have beencarried over from your U.S. Form 1041, ScheduleD, and is properly reported on Form 2, line 32.

Differences include:

1. Capital gains or losses that occurred while thetaxpayer was legally domiciled in another state orcountry during the taxable year;

2. Capital gains or losses from transactions re-ported as installment sales for U.S. income taxpurposes but not for Massachusetts;

3. Massachusetts has adopted basis adjustmentrules to take into account differences betweenMassachusetts and U.S. tax laws; and

4.Gains from pre-1996 installment sales classifiedas ordinary income for Massachusetts purposesand reported on Massachusetts Form 2, ScheduleD, line 8 should be reported on MassachusettsForm 2, Schedule D, line 9 (“Differences”). Theamount of such gain classified as ordinary incomeshould then be reported on Form 2, line 6 (“Otherincome”) and identified as “2012 gain from pre-1996 installment sale.” Any entry on line 9 mustbe clearly explained in an enclosed statement.

Line 10. Massachusetts 2013 Gainsor LossesExclude/subtract line 9 from line 8.

Line 11. Long-Term Gains onCollectibles and Pre-1996Installment SalesEnter on line 11 the amount of long-term gains oncollectibles and pre-1996 installment sales classi-fied as capital gain income for Massachusettspurposes that are included on line 10. Gains frompre-1996 installment sales are classified as eithercapital gains or ordinary income under the Mass-achusetts law in effect on the date the sale or exchange took place. Gains from pre-1996 install-ment sales that are classified as capital gainsshould be reported as 12% income on Massachu-setts Form 2, Schedule B, line 13. If the asset washeld for more than one year when it was sold, thegain will be eligible for a 50% long-term deduction.Gains from pre-1996 installment sales classified asordinary income and reported on MassachusettsForm 2, Schedule D, line 8 should be reported onMassachusetts Schedule D, line 9 (“Differences”).The amount of such gain classified as ordinaryincome should then be reported on Form 2, line 6(“Other income”) and identified as “2013 gainfrom pre-1996 installment sale.” “Collectibles” aredefined as any capital asset that is a collectiblewithin the meaning of Code § 408(m), as amendedand in effect for the taxable year, including worksof art, rugs, antiques, metals, gems, stamps, alco-holic beverages, certain coins, and any other itemstreated as collectibles for federal tax purposes.

Line 12. SubtotalSubtract line 11 from line 10 and enter the resulton line 12. If Form 2, Schedule D, line 12 is a lossand Form 2, Schedule B, line 23 is “0” or less, omitForm 2, Schedule D, line 13 and enter the amountfrom Form 2, Schedule D, line 12 on Form 2,Schedule D, line 14 and enter “0” on Form 2, line31. If Form 2, Schedule D, line 12 is a gain andForm 2, Schedule B, line 23 is a loss, go to Form 2,Schedule D, line 13. If Form 2, Schedule D, line 12is a loss and Form 2, Schedule B, line 23 is a pos-itive amount, go to Form 2, Schedule D, line 13. IfForm 2, Schedule D, line 12 is a gain, and Form 2,Schedule B, line 23 is “0” or greater, omit Form 2,Schedule D, lines 13 through 15 and enter theamount from Form 2, Schedule D, line 12 on Form2, Schedule D, line 16.

Line 13. Capital Losses AppliedAgainst Capital GainsIf Form 2, Schedule D, line 12 is a positive amountand Form 2, Schedule B, line 23 is a loss, enterthe smaller of Form 2, Schedule D, line 12 orForm 2, Schedule B, line 23 (considered as posi-tive amount) on Form 2, Schedule D, line 13 andForm 2, Schedule B, line 24. If Form 2, ScheduleD, line 12 is a loss and Form 2, Schedule B, line 26is a positive amount, enter the smaller of Form 2,


Schedule D, line 12 (considered as a positiveamount) or Form 2, Schedule B, line 26 on Form2, Schedule D, line 13 and in Form 2, Schedule B,line 27.

Line 14. SubtotalIf line 12 is less than “0,” combine lines 12 and13. If line 12 is greater than “0,” subtract line 13from line 12.

Line 15. Long-Term Capital LossesApplied Against Interest andDividendsComplete the Long-Term Capital Losses AppliedAgainst Interest and Dividends Worksheet forForm 2, Schedule B, Line 34 and Form 2, Sched-ule D, Line 15 only if Form 2, Schedule B, line 33is a positive amount and Form 2, Schedule D, line14 is a loss.

Line 16. SubtotalCombine line 14 with line 15 and enter the resulton line 16. If Form 2, Schedule D, line 16 is “0”,enter “0” in lines 17 through 19. If Form 2, Sched-ule D, line 16 is a loss, omit lines 17 and 18 andenter the amount from line 16 on line 19 and enter“0” on Form 2, line 31.

Line 17. Allowable DeductionsFrom Your Trade or BusinessGenerally, taxpayers may not use excess 5.3%trade or business deductions to offset other in-come. However, Massachusetts law allows suchoffsets if the following requirements are met: theexcess 5.3% deductions must be adjusted grossincome deductions allowed under G.L. c. 62, §2(d) and these excess deductions may only beused to offset other income which is effectivelyconnected with the active conduct of a trade ofbusiness or any other income allowed underCode § 469(d)(1)(B) to offset losses from passiveactivities. Enclose Schedule C-2 with your return.Enter on line 17 the amount from Schedule C-2,line 14.

Line 18. SubtotalSubtract line 17 from line 16 and enter the result online 18 and on Form 2, line 31. Not less than “0.”

Line 19. Available Losses forCarryoverEnter the amount from Form 2, Schedule D, line16, only if it is a loss.

Schedule ERental, Royalty and REMIC Incomeor LossEnclose a copy of the U.S. Schedule E and U.S.Form 8582.

Note: Income from rental property located in oroutside Massachusetts is subject to taxation onForm 2, Fiduciary Income tax Return, if it is accu-mulated for unknown or unascertained persons, orpersons with uncertain interests. For a decedent’sestate, if the executor is authorized or directed inthe will to occupy the decedent’s realty and collectrents therefrom, or in the absence of a will, thecourt decree, appointing a temporary executor oradministrator, authorizes the same, then to the ex-tent of any income collected, it is reported on line1a. Generally, the income is reported on the per-sonal income tax return of the heir or devisee tak-ing either title or control and possession of theproperty, because under Massachusetts law, titleto real property vests immediately upon death inthe devisees or heirs at law. However, the incomeis reported on Form 2 when the real estate is underadministration or the person taking title or pos-session is the executor or administrator.

Name of Estate or TrustEnter the exact legal name of the entity. If an estateor trust, refer to the governing instrument. Otherfiduciaries should use the exact legal name as theirappointing court ruled.


Line 1a. Rental and Royalty Incomeor LossEnter on line 1a the total rental and royalty incomeor loss from U.S. Form 1040, Schedule E, Part I,line 26 and Part V, line 40.

Line 1b. Real Estate MortgageInvestment Conduit (REMIC)Income or LossEnter on line 1b the total Real Estate Mortgage In-vestment Conduit (REMIC) residual income or lossfrom U.S. Schedule E, Part IV, line 39.

Line 1. SubtotalCombine lines 1a and 1b, and enter on line 1.

Line 2. Massachusetts DifferencesEnter and explain on line 2 any differences betweenrental, royalty, and REMIC income reported onyour U.S. return and your Massachusetts return.Possible differences include part-year residentstatus, trust provisions, deductible royalties fromapproved U.S. energy conservation patents, andpassive losses as described below. Explain the dif-ferences in the space provided or enclose an ad-ditional sheet if necessary.

Deductible Royalties From Approved U.S. En-ergy Conservation Patents. Enter any income youreceived from certain U.S. patents that are ap-proved by the Massachusetts Division of EnergyResources as being useful for energy conserva-tion or for alternative energy development. Formore information, contact the Division of EnergyResources at (617)727-4732. If such approvedpatent income is other than royalty income, usethe applicable schedule and explain.

Passive Losses. As a result of differences in U.S.and Massachusetts rules in 1987, the calculationsyou made for passive losses on your 1987 U.S.and Massachusetts returns may have differed.Differences in amounts reported in 1987 for U.S.and Massachusetts tax purposes should be ad-justed when the property is disposed of or the de-duction is used up. In addition, passive lossesallowed for Massachusetts tax purposes in 1987,but carried over for U.S. tax purposes, cannot beused again for Massachusetts tax purposes whensuch carryover losses are eventually allowed forU.S. tax purposes. To the extent there are applica-ble adjustments for Massachusetts differences,taxpayers must calculate allowable losses ona pro forma U.S. Form 8582, Passive ActivityLoss Limitations, which should then be attachedto the Form 2.

Line 3. Abandoned BuildingRenovation DeductionIn line 3 enter 10% of the costs incurred in reno-vating a qualifying abandoned building in an Eco-nomic Opportunity Area. For further information,contact the Massachusetts Office of Business De-velopment at (617) 973-8600.

Line 4. Total Rental, Royalty andREMIC Income or Loss forMassachusettsCombine lines 1, 2 and 3. Enter the total on line 4of Schedule E and on Form 2, line 4.


Schedule FCredit for Income Taxes Due toOther JurisdictionsComplete Schedule F to calculate your credit forincome taxes paid by you to another state or ju-risdiction on income reported on Form 2. Enclosea complete copy of the return(s) filed in the otherjurisdictions. Do not include taxes paid to the U.S.government or local or city taxes. You are allowedto claim a credit for taxes paid to the following ju-risdictions: (a) other states in the U.S.; (b) any ter-ritory or dependency of the U.S. (including PuertoRico, the Virgin Islands, Guam, the District of Co-lumbia); or (c) the Dominion of Canada or any ofits provinces (less any U.S. credit amount allow-able from U.S. Form 1116).

Note: Canada is the only foreign country for whichyou may claim a tax credit on Schedule F. Firstdeduct any U.S. credit amount allowable. The totalcredit which you calculate on Schedule F is thesmaller of the amount of taxes due to other juris-dictions (net of certain adjustments) or the por-tion of your Massachusetts tax due on your grossincome that is taxed in such other jurisdictions.Credit is not given for a property tax due to anotherjurisdiction on account of capital stock or property.This does not refer to a tax on gain or income fromthe sale of capital stock or property, as included onForm 2, Schedule B or D. Credit is also not givenfor any interest and penalties paid on a tax due toanother jurisdiction.

You must complete separate schedules if you hadPart B 5.25% income, Part A interest (other thaninterest from Massachusetts banks) and dividendincome, Part A 12% capital gain income, or PartC 5.25% capital gain income taxed by another ju-risdiction. If you use this schedule to calculate acredit for Part A interest (other than interest fromMassachusetts banks) and dividend income, PartA 12% capital gain income, or Part C 5.25% capitalgain income, substitute such income for Part B5.25% income on lines 1, 2, and 4. You must alsosubstitute Form 2, Schedule B, line 9 and line 15 orForm 2, Schedule D, line 12, but not less than “0,”for Form 2, line 7 on line 2 of Schedule F, and thetotal of Form 2, line 20 multiplied by .0525 andForm 2, line 30 or line 38 for Part B 5.25% tax online 4 of Schedule F.

Note: When using this schedule to calculate creditfor Part A interest (other than interest from Mass-achusetts banks) and dividend income, Part A 12%capital gain income, or Part C 5.25% capital gainincome, enter on line 1 such income taxed in an-other jurisdiction calculated as if it was earned inMassachusetts.

Line 6. Income Tax Paid to OtherJurisdictionsEnter the total tax paid to other jurisdictions onincome also reported on this return unless the taxwas paid to Canada. If the tax was paid to Canada,the amount reported on this line must be reducedby the amount claimed as a foreign tax credit onU.S. Form 1041, Schedule G, line 2a. Credit is onlyallowable for amount of tax paid.

Form 2GGrantor’s/Owner’s Share of aGrantor-Type TrustMassachusetts follows the Internal Revenue Code(“Code”) grantor-type trust rules as contained inCode §§ 671 through 678. See G.L. c. 62, § 10.Under G.L. c. 62, § 10(e), if the grantor or anotherperson is treated as the owner of any portion of atrust by reason of the provisions of §§ 671 to 678,inclusive, of the Code, the trust is a grantor trustand its income is taxable to the grantor or suchother person, not to the trust. The fiduciary of agrantor trust is required to file with the Depart-ment an informational return, Form 2G, along witha schedule indicating the items of income, deduc-tions, and credits against tax attributable to thetrust treated as owned by the grantor/owner andsend a copy of the schedule to the grantor/owner,who is required to report the income, deductions,and credits thereon on his Massachusetts individ-ual income tax return. A resident grantor or otherowner must include grantor-type trust income incalculating his/her estimated tax. Generally, agrantor-type trust exists when one of the followingis present:

1.The trust income is distributable to/or accumu-lated for the benefit of the grantor or the grantor’sspouse;

2.The grantor holds a reversionary interest in thetrust which is not postponed beyond a 10-yearperiod;

3. The grantor has the power to revoke the trustin his/her favor;

4.The grantor has the power to control the bene-ficial enjoyment of the trust corpus or income;

5. The grantor has retained certain administrativepowers with respect to the trust; and

6.A person, other than the grantor, has the powerto obtain the trust corpus or income.

Fiduciary expenses and compensation are not de-ductible. All supporting details, e.g., Form 2, Sched -ule D, if there are long-term capital gains or lossesmust be enclosed.

Note: Massachusetts has not adopted Treas. Reg.§ 1.671-4(b) regarding consolidated filing ofgrantor-type trusts.

Consolidated Form 2G FilingIf you are required to file more than one Form 2G,you can file on a “consolidated” basis. Use Form2 as the coversheet for the return and select the“Consolidated Form 2G” oval on Form 2. The Form2 signature section must also be completed andsigned. No other section or line on the Form 2 isto be completed if checking the oval “consolidatedForm 2G. Each Form 2G, or preapproved substi-tute, can then be enclosed with the “consolidated”Form 2 without the requirement of each Form 2Gbeing signed. Mail the Consolidated Form 2G tothe same address as Form 2G.

Due Date of ReturnForm 2G is due on or before April 15, 2014. If filingon a fiscal year basis, the return is generally dueon or before the 15th day of the fourth month afterthe close of the fiscal year. Mail Form 2G to: Mass-achusetts Department of Revenue, PO Box 7017,Boston, MA 02204. Direct fiduciary inquiries (notreturns) to: Massachusetts Department of Rev-enue, Customer Service Bureau, PO Box 7010,Boston, MA 02204; or call (617) 887-MDOR.

Line 22. Massachusetts Income TaxPaid by TrusteeEnter on line 22 the following: (1) nonresidentwithholding, (2) pooled income fund/charitableremainder annuity or unitrust withholding, and(3) Massachusetts income tax withheld on FormsW-2,W-2G, 1099-G and 1099R. For more infor-mation, see below.

Nonresident WithholdingA trustee is required to deduct and withhold fromany income subject to taxation (Massachusettssource income-G.L. c. 62, § 5A) at the applicablerates when the grantor or other owner is a nonres-ident. Form 2-ES, Massachusetts Estimated In-come Tax for Filers of Forms 23M, and M-990T-62,is to be used for this purpose. The total paymentswithheld must be entered on line 22 of Form 2G,and the nonresident grantor or owner must claimsuch total paid over by the trustee on his/her indi-vidual income tax return.

Pooled Income Fund/CharitableRemainder Annuity or UnitrustWithholdingA Massachusetts trustee of a pooled income fund,a charitable remainder annuity trust or a charita-ble remainder unitrust who makes payment to aMassachusetts beneficiary of taxable income is re-quired to deduct and withhold tax on that income


at the applicable rates. Form 2-ES is to be used forthis purpose. The total payments withheld must beentered on line 22 of Form 2G, and the beneficiarymust claim such total paid over by the trustee onhis/her individual income tax return.

Massachusetts Income TaxWithheld on Forms W-2, W-2G,1099-G and 1099REnter on line 22 any income tax withheld on aForm W-2,W-2G, 1099-G or 1099R.

Schedule HExpenses and FiduciaryCompensationThe Schedule H deductions apply to every execu-tor, administrator, trustee, guardian, conservator,trustee in bankruptcy or receiver of a trust or es-tate, with the exception of a trustee of a pooled in-come fund or a trustee of a charitable remainderannuity trust or unitrust. Schedule H deductionsare specifically allowed by statute and include anexpense deduction and a fiduciary compensationdeduction.

Expense DeductionFiduciaries may take an amortization deduction forpremiums paid upon bonds held by the estate ortrust, but only if the bond income is taxable. In ad-dition, fiduciaries may take a deduction for a por-tion of their expenses for safe deposit box rentalsand surety bond premiums. These expenses musthave been incurred and actually paid during thetax year covered by the return in order to be al-lowed as a deduction. The expense deduction mustbe allocated between taxable and nontaxable PartA income, and only the taxable portion is de-ductible. No deduction is allowed against Part B5.25% income or Part C 5.25% Capital Gains. Thedeductible portion is calculated by computing theratio of taxable Part A income, over total taxableand nontaxable Part A income, from all sources.

Expenses of Trustees in BankruptcyOrdinary and necessary business expenses of atrustee in bankruptcy engaged in the business ofmanaging and liquidating a bankrupt estate aredeductible against Part B 5.25% income. The re-mainder of these expenses may be taken as anexcess trade or business deduction against otherincome as long as such income is derived fromthe trustee’s investment of the liquidated assetswhich have not yet been distributed. For more in-formation, see LR 82-66. Note: these expensesare not deductible on Schedule H. They are to bereported on Massachusetts Schedule C-2, and a

copy of Massachusetts Schedules C and C-2 mustbe enclosed to Form 2.

Part 1. Expense DeductionComputationLine 1Enter on line 1a the amount actually paid duringthe taxable year for safe deposit box rentals. Enteron line 1b the amount actually paid during the tax-able year for premiums on surety bonds. Add lines1a and 1b, and enter the total on line 1.

Line 2Add Form 2, Schedule B, line 36 and Form 2, lines15 and 24. This is your total taxable Part A incomefor the year.

Line 3Add Form 2, Schedule B, lines 4, 12, 13, 14 andForm 2, line 24; then subtract Form 2, ScheduleB, line 6. This is your total Part A income (taxableand nontaxable) for the year. If common trust fundinterest and dividends are not included in Form 2,Schedule B, line 4, add in the amount from Form2, line 15.

Line 4Divide line 2 by line 3, and enter the percentagehere. This is your percentage of taxable Part A in-come to total Part A income for the year.

Line 5Multiply your total expenses in line 1 by the per-centage in line 4, and enter the result here and onForm 2, Schedule B, line 37a. This is the maxi-mum expense deduction you are allowed againstPart A income.

Part 2. Fiduciary CompensationDeduction ComputationLine 6Enter the fiduciary compensation actually paid dur-ing the taxable year. Note: None of the followingexpenses are deductible on Form 2: estate admin-istrative expenses, executor’s expenses, executor’scommissions, attorney fees, accountant fees, andtax preparer fees.

Line 7Enter here the amount from Form 2, line 7. This isyour total Part B 5.25% income for the year.

Line 8Add Form 2, Schedule B, lines 4, 12, 13, 14 andForm 2, line 24; then subtract Form 2, ScheduleB, line 6. This is your total Part A income (taxableand nontaxable) for the year. If common trust fundinterest and dividends are not included in Form 2,

Schedule B, line 4, add in the amount from Form2, line 15, but not less than 0.

Line 9Subtract Form 2, Schedule D, line 11 from Form2, Schedule D, line 8 and add Form 2, line 32, andenter the total here.

Line 10Add lines 7 through 9, and enter the total here.

Line 11Divide line 8 by line 10 and enter the percentagehere. This is your percentage of taxable Part A in-come to total income (Part B 5.25% income, PartA interest, dividend, and 12% capital gain income,and Part C capital gain income) for the year.

Line 12Multiply line 11 by line 6, and enter the result here.This represents the amount of fiduciary compen-sation actually paid on Part A income. Compensa-tion paid on Part B 5.25% or Part C capital gainincome is not deductible.

Line 13Add Form 2, Schedule B, line 36 and Form 2,lines 15 and 24, and enter the total here.

Line 14Enter the amount from line 8. This is your total PartA income (taxable and nontaxable) for the year.

Line 15Divide line 13 by line 14, and enter the percentagehere. This is your percentage of taxable Part A in-come to total Part A income for the year.

Line 16Multiply line 15 by line 12, and enter the total here.This represents the amount of fiduciary compen-sation actually paid on taxable Part A income.Compensation allocated to nontaxable Part A in-come is not deductible.

Line 17Enter here 7% of line 13.

Line 18Enter here and on Form 2, Schedule B, line 37b,the amount from line 16 or 17, whichever issmaller. This is the maximum fiduciary compen-sation deduction you are allowed to take againstPart A income.


Schedule IDDIncome Distribution DeductionEstate and trust income includable in the federalgross income of a beneficiary by reason of InternalRevenue Code (“Code”) § 652 (the section of theCode that determines the amount and character ofthe gross income includable by a simple trust ben-eficiary) or § 662 (the section of the Code that de-termines the amount and character of the grossincome includable by a complex trust beneficiary)is no longer taxable at the estate or trust level;rather it is to be taken into account in calculatingthe beneficiary’s Massachusetts taxable incomeunder G.L. c. 62, § 2. To avoid double taxation, atrustee or other fiduciary receiving income in-cluded in the gross income of a beneficiary by rea-son of Code §§ 652 or 662 is allowed a deductionon Form 2 in computing the taxable income of theestate or trust for that portion of Part A, B, or Cincome attributable to such beneficiary.

The amount deductible on Form 2, line 10 fromPart B income; line 17 from part A Interest andDividend Income; line 26 from Part A 12% CapitalGains; and line 34 from Part C 5.25% CapitalGains is to be calculated on Schedule IDD, IncomeDistribution Deduction.

Note: Schedule IDD does not apply when all of theincome is accumulated within the estate or trust.Note: the taxation of grantor-type trusts, pooledincome funds, charitable remainder annuity trusts,and charitable remainder unitrusts has not beenaffected by the above law change. The incomefrom these entities continues to be taxed as it hasbeen taxed in the past. Additionally, estate or trustincome not includable in the federal gross incomeof a beneficiary by reason of the above Code sec-tions continues to be taxable at the trust level.

65 Day Election Does Not ApplyIn determining the amount paid, credited, or oth-erwise required to be distributed to a beneficiary(lines 3, 8, 13, and 18 of Schedule IDD), Mass-achusetts has not adopted the 65 day electionavailable to estates and complex trusts federallyunder Code § 663(b). Therefore, any distributionor portion thereof to a beneficiary made within thefirst 65 days following the close of the 2013 tax-able year, treated federally as having been distrib-uted in 2013, is not includible on Schedule IDD.Rather, it is to be treated for Massachusetts pur-poses in the 2013 taxable year as accumulatedincome and is taxable at the estate or trust level,with one exception. Non-Massachusetts sourceincome accumulated for a vested nonresidentbeneficiary is not taxable at the estate or trustlevel, but is deductible on Form 2, lines 12, 19,28, or 36, as applicable.

Note: any distribution or portion thereof to a ben-eficiary made within the first 65 days followingthe close of the 2013 taxable year will be treatedin the year of distribution, i.e., 2014, as a tax freedistribution and will not be includible on the 2014Schedule IDD.

Vested Nonresidents and CharitiesIncome actually paid to vested nonresident benefi-ciaries and or charities is to be included as part ofthe income distribution deduction calculation andis reportable on Schedule IDD, as applicable. Suchincome is not subject to the Nonresident/Charita-ble Deduction and is not includible on Form 2,lines 12, 19, 28, or 36. Income accumulated or ir-revocably set aside for vested nonresident benefi-ciaries and or charities, on the other hand, is notsubject to an income distribution deduction and isnot reportable on Schedule IDD.

Schedule 2K-1Beneficiary’s MassachusettsInformationPurposeUse Schedule 2K-1, Beneficiary’s MassachusettsInformation, to report a beneficiary’s share of in-come, deductions, and credits from a decedent’sestate or a trust. Grantor-type trusts do not useSchedule 2K-1 to report the income, deductions orcredits of the grantor or other person treated asthe owner. Form 2G, Grantor’s/Owner’s Share of aGrantor-Type Trust, is used for that purpose.

Who Must FileTrustees or other fiduciaries must enclose a copyof Schedule 2K-1 for each beneficiary with the estate’s or trust’s Form 2, Fiduciary Income TaxReturn, filed with the Commonwealth. Each bene-ficiary must also be given a copy of his respectiveSchedule 2K-1 along with instructions on how toreport the items on the Schedule 2K-1 on his per-sonal income tax return. One copy of each Sched-ule 2K-1 must be retained for the trustee’s orfiduciary’s records.

Beneficiary’s Tax YearThe beneficiary’s income from the estate or trustmust be included in the beneficiary’s return for thetaxable year in which the estate’s or trust’s taxableyear ends.

Nonresident BeneficiariesA nonresident beneficiary receiving income froman estate or trust is taxed only on income that isderived from Massachusetts sources. Where anestate or trust derives income from both withinand outside Massachusetts, it will be necessary to

determine what portion of the beneficiary’s shareof income is from sources within and outsideMassachusetts so as to properly allocate and re-port the income on Schedule 2K-1.

Massachusetts Source IncomeIncome derived from or effectively connected with:(1) any trade or business, including any employ-ment carried on by the taxpayer in the Common-wealth, whether or not the nonresident is activelyengaged in a trade or business or employment inthe Commonwealth in the year in which the in-come is received; (2) the participation in any lotteryor wagering transaction within the Commonwealth;or (3) the ownership of any interest in real or tan-gible personal property located in the Common-wealth. Gross income derived from or effectivelyconnected with any trade or business, includingany employment, carried on by the taxpayer in theCommonwealth includes: gain from the sale of abusiness or of an interest in a business; distribu-tive share income; separation, sick, or vacationpay; deferred compensation and nonqualified pen -sion income not prevented from state taxation bythe laws of the United States; and income from acovenant not to compete.

Examples of Massachusetts source income include:

1. All wages, salaries, tips, bonuses, fees, andother compensation which relate to activities car-ried on in Massachusetts, regardless of where orwhen the income is received;

2.Unemployment compensation related to previ-ous Massachusetts employment;

3. Profit from a business, trade, profession, partnership, or S corporation conducted in Massachusetts;

4.Rents and royalties from real and tangible per-sonal property located in Massachusetts or fromother business activities in Massachusetts;

5. Gain from the sale of real or tangible personalproperty located in Massachusetts;

6. Interest and dividends, but only if derived fromor connected with a Massachusetts business ac-tivity or the ownership of Massachusetts real es-tate or tangible personal property; and

7.The definition of Massachusetts source incomenow includes gain from the sale of a business oran interest in a business, separation, sick or vaca-tion pay, deferred compensation, income fromcovenants not to compete, and nonqualified pen-sion income that federal law allows states to tax.

Name of Estate or TrustEnter the exact legal name of the entity. If an estateor trust, refer to the governing instrument. Other


fiduciaries should use the exact legal name as theirappointing court ruled.


Name of BeneficiaryAs used in this Schedule, “beneficiary” means in-come beneficiary. A “trust income beneficiary” isa beneficiary who is entitled to receive the incomefrom the trust. If filing for other than a trust, enterthe name and address of the person receiving theincome.

Legal Domicile of BeneficiaryA legal domicile is a person’s permanent home.

Beneficiary’s Identification NumberEnter the Social Security number of the beneficiaryif the beneficiary is an individual beneficiary. Enterthe Employer Identification number of the benefi-ciary if the beneficiary is an entity beneficiary.

Name of FiduciaryEnter the exact legal name and title of the fidu-ciary. In case of multiple fiduciaries, one name issufficient.

Mailing Address of FiduciaryEnter the mailing address of the fiduciary listed onthe first line.

In Care of AddressIf the mailing address is the address of a legal firmor of a person other than the fiduciary, that personor firm should be listed on the c/o line.

Allocable Share Items, Columns(a), (b),(c), and (d)Column (a). Enter the amounts from your federal1041, Schedule K-1, allocable to the beneficiary.

Column (b). Enter the adjustments resulting fromdifferences between Massachusetts and federallaw for each specific line item.


Column (c). Combine columns (a) and (b) andenter the result in column (c). The amounts en-tered in column (c) are used to report the amountentered on Form 2 for each specific line item allo-cable to the beneficiary.

Column (d). The amounts entered are used to re-port Massachusetts source income, loss, andcredits allocable to the beneficiary, but only if thebeneficiary is a nonresident of Massachusetts.

Line 23. Estimated Tax PaymentsMade on Behalf of NonresidentBeneficiary by FiduciaryA trustee or other fiduciary having control of thepayment to a nonresident individual beneficiarysubject to tax at the beneficiary level under G.L. c.62, §§ 5A and 10(h), must make estimated taxpayments on behalf of the nonresident individualbeneficiary on Form 1-ES, Massachusetts Esti-mated Income Tax. In reporting the estimated taxpayments made on behalf of the nonresident indi-vidual beneficiary on Schedule 2K-1, the amountwithheld should be entered on line 23. Suchamount cannot be used to reduce the amount ofincome taxable to the beneficiary; rather, it is al-lowed as a credit on his return of income againstthe amount of income tax computed thereon andshould be reported by the beneficiary on the “Mass -achusetts estimated tax payments” line of Form1-NR/PY. For more information, see DOR Direc-tive 07-4.

A trustee or other fiduciary having control of thepayment to a nonresident entity beneficiary subjectto tax at the beneficiary level under G.L. c. 62, §§5A and 10(h), must make estimated tax paymentson behalf of the nonresident entity beneficiary onForm 2-ES, Massachusetts Estimated Income Taxfor Filers of Forms 2, 3M, and M-990T-62. In re-porting the estimated tax payments made on behalfof the nonresident entity beneficiary on Schedule2K-1, the amount withheld should be entered online 23. Such amount cannot be used to reduce theamount of income taxable to the entity beneficiary;rather, it is allowed as a credit on its return of in-come against the amount of income tax computedthereon and should be reported by the entity ben-eficiary on the “Massachusetts estimated tax pay-ments” line of Form 2, Form 3M, Form M-990T-62or other form used as an income tax return by thebeneficiary. For more information, see DOR Di rec -tive 07-4.

Line 24. Refundable Film CreditThe refundable film credit may be passed throughto a beneficiary on line 24 of Schedule 2K-1 onlyif not claimed at the estate or trust level on line 59of Form 2. These alternatives are mutually exclu-sive. For more information, see the instructions forForm 2, line 60. If the credit is passed through to abeneficiary on line 24, be sure to enclose ScheduleRFC. Failure to enclose Schedule RFC will result inthe credit being disallowed on the beneficiary’s taxreturn and an adjustment of the beneficiary’s re-ported tax.

Line 25. Refundable Dairy CreditThe refundable dairy credit may be passed throughto a beneficiary on line 25 of Schedule 2K-1 only ifnot claimed at the estate or trust level on line 61 ofForm 2. These alternatives are mutually exclusive.For more information, see the instructions forForm 2, line 61. If the credit is passed through to abeneficiary on line 25 be sure to enter the Depart-ment of Agricultural Resources-issued certificatenumber in the space provided on line 25.

Line 26. Refundable ConservationLand Tax CreditThe refundable conservation land tax credit maybe passed through to a beneficiary on line 26 ofSchedule 2K-1 only if not claimed at the estate ortrust level on line 62 of Form 2. These alternativesare mutually exclusive. For more information, seethe instructions for Form 2, line 62. If the credit ispassed through to a beneficiary on line 26 be sureto enter the DOR -issued certificate number in thespace provided on line 26.

Line 27. Other PaymentsEnter here Massachusetts income taxes withheldunder the Employer Identification number of theestate or trust on Forms W-2, W-2G, 1099-G, and1099-R, but only if not claimed at the estate ortrust level on line 55 of Form 2. For more informa-tion, see the instructions for Form 2, line 55.

212013 Massachusetts Income Tax Table at the 5.25% RateUse this table to calculate tax for taxable 5.25% income (line 21) of not more than $24,000.

Line 22 instructions: To find your tax on 5.25% Income (line 22), read down the tax table income column to the line containing the amount you en-tered in line 21. Then read across to the TAX column and enter this amount in line 22. If your taxable 5.25% income in line 21 is greater than $24,000,multiply the amount by .0525. Enter the result in line 22.

INCOMEMore But notthan more than TAX






$ 1 – $ 50 $ 150 – 100 4100 – 150 7150 – 200 9200 – 250 12250 – 300 14300 – 350 17350 – 400 20400 – 450 22450 – 500 25500 – 550 28550 – 600 30600 – 650 33650 – 700 35700 – 750 38750 – 800 41800 – 850 43850 – 900 46900 – 950 49950 – 1,000 51

1,000 – 1,050 541,050 – 1,100 561,100 – 1,150 591,150 – 1,200 621,200 – 1,250 641,250 – 1,300 671,300 – 1,350 701,350 – 1,400 721,400 – 1,450 751,450 – 1,500 771,500 – 1,550 801,550 – 1,600 831,600 – 1,650 851,650 – 1,700 881,700 – 1,750 911,750 – 1,800 931,800 – 1,850 961,850 – 1,900 981,900 – 1,950 1011,950 – 2,000 1042,000 – 2,050 1062,050 – 2,100 1092,100 – 2,150 1122,150 – 2,200 1142,200 – 2,250 1172,250 – 2,300 1192,300 – 2,350 1222,350 – 2,400 1252,400 – 2,450 1272,450 – 2,500 1302,500 – 2,550 1332,550 – 2,600 1352,600 – 2,650 1382,650 – 2,700 1402,700 – 2,750 1432,750 – 2,800 1462,800 – 2,850 1482,850 – 2,900 1512,900 – 2,950 1542,950 – 3,000 1563,000 – 3,050 1593,050 – 3,100 1613,100 – 3,150 1643,150 – 3,200 1673,200 – 3,250 1693,250 – 3,300 1723,300 – 3,350 1753,350 – 3,400 1773,400 – 3,450 1803,450 – 3,500 1823,500 – 3,550 1853,550 – 3,600 1883,600 – 3,650 1903,650 – 3,700 1933,700 – 3,750 1963,750 – 3,800 1983,800 – 3,850 2013,850 – 3,900 2033,900 – 3,950 2063,950 – 4,000 209

$ 4,000 – $ 4,050 $ 2114,050 – 4,100 2144,100 – 4,150 2174,150 – 4,200 2194,200 – 4,250 2224,250 – 4,300 2244,300 – 4,350 2274,350 – 4,400 2304,400 – 4,450 2324,450 – 4,500 2354,500 – 4,550 2384,550 – 4,600 2404,600 – 4,650 2434,650 – 4,700 2454,700 – 4,750 2484,750 – 4,800 2514,800 – 4,850 2534,850 – 4,900 2564,900 – 4,950 2594,950 – 5,000 2615,000 – 5,050 2645,050 – 5,100 2665,100 – 5,150 2695,150 – 5,200 2725,200 – 5,250 2745,250 – 5,300 2775,300 – 5,350 2805,350 – 5,400 2825,400 – 5,450 2855,450 – 5,500 2875,500 – 5,550 2905,550 – 5,600 2935,600 – 5,650 2955,650 – 5,700 2985,700 – 5,750 3015,750 – 5,800 3035,800 – 5,850 3065,850 – 5,900 3085,900 – 5,950 3115,950 – 6,000 3146,000 – 6,050 3166,050 – 6,100 3196,100 – 6,150 3226,150 – 6,200 3246,200 – 6,250 3276,250 – 6,300 3296,300 – 6,350 3326,350 – 6,400 3356,400 – 6,450 3376,450 – 6,500 3406,500 – 6,550 3436,550 – 6,600 3456,600 – 6,650 3486,650 – 6,700 3506,700 – 6,750 3536,750 – 6,800 3566,800 – 6,850 3586,850 – 6,900 3616,900 – 6,950 3646,950 – 7,000 3667,000 – 7,050 3697,050 – 7,100 3717,100 – 7,150 3747,150 – 7,200 3777,200 – 7,250 3797,250 – 7,300 3827,300 – 7,350 3857,350 – 7,400 3877,400 – 7,450 3907,450 – 7,500 3927,500 – 7,550 3957,550 – 7,600 3987,600 – 7,650 4007,650 – 7,700 4037,700 – 7,750 4067,750 – 7,800 4087,800 – 7,850 4117,850 – 7,900 4137,900 – 7,950 4167,950 – 8,000 419

$ 8,000 – $ 8,050 $ 4218,050 – 8,100 4248,100 – 8,150 4278,150 – 8,200 4298,200 – 8,250 4328,250 – 8,300 4348,300 – 8,350 4378,350 – 8,400 4408,400 – 8,450 4428,450 – 8,500 4458,500 – 8,550 4488,550 – 8,600 4508,600 – 8,650 4538,650 – 8,700 4558,700 – 8,750 4588,750 – 8,800 4618,800 – 8,850 4638,850 – 8,900 4668,900 – 8,950 4698,950 – 9,000 4719,000 – 9,050 4749,050 – 9,100 4769,100 – 9,150 4799,150 – 9,200 4829,200 – 9,250 4849,250 – 9,300 4879,300 – 9,350 4909,350 – 9,400 4929,400 – 9,450 4959,450 – 9,500 4979,500 – 9,550 5009,550 – 9,600 5039,600 – 9,650 5059,650 – 9,700 5089,700 – 9,750 5119,750 – 9,800 5139,800 – 9,850 5169,850 – 9,900 5189,900 – 9,950 5219,950 – 10,000 52410,000 – 10,050 52610,050 – 10,100 52910,100 – 10,150 53210,150 – 10,200 53410,200 – 10,250 53710,250 – 10,300 53910,300 – 10,350 54210,350 – 10,400 54510,400 – 10,450 54710,450 – 10,500 55010,500 – 10,550 55310,550 – 10,600 55510,600 – 10,650 55810,650 – 10,700 56010,700 – 10,750 56310,750 – 10,800 56610,800 – 10,850 56810,850 – 10,900 57110,900 – 10,950 57410,950 – 11,000 57611,000 – 11,050 57911,050 – 11,100 58111,100 – 11,150 58411,150 – 11,200 58711,200 – 11,250 58911,250 – 11,300 59211,300 – 11,350 59511,350 – 11,400 59711,400 – 11,450 60011,450 – 11,500 60211,500 – 11,550 60511,550 – 11,600 60811,600 – 11,650 61011,650 – 11,700 61311,700 – 11,750 61611,750 – 11,800 61811,800 – 11,850 62111,850 – 11,900 62311,900 – 11,950 62611,950 – 12,000 629

$12,000 – $12,050 $ 63112,050 – 12,100 63412,100 – 12,150 63712,150 – 12,200 63912,200 – 12,250 64212,250 – 12,300 64412,300 – 12,350 64712,350 – 12,400 65012,400 – 12,450 65212,450 – 12,500 65512,500 – 12,550 65812,550 – 12,600 66012,600 – 12,650 66312,650 – 12,700 66512,700 – 12,750 66812,750 – 12,800 67112,800 – 12,850 67312,850 – 12,900 67612,900 – 12,950 67912,950 – 13,000 68113,000 – 13,050 68413,050 – 13,100 68613,100 – 13,150 68913,150 – 13,200 69213,200 – 13,250 69413,250 – 13,300 69713,300 – 13,350 70013,350 – 13,400 70213,400 – 13,450 70513,450 – 13,500 70713,500 – 13,550 71013,550 – 13,600 71313,600 – 13,650 71513,650 – 13,700 71813,700 – 13,750 72113,750 – 13,800 72313,800 – 13,850 72613,850 – 13,900 72813,900 – 13,950 73113,950 – 14,000 73414,000 – 14,050 73614,050 – 14,100 73914,100 – 14,150 74214,150 – 14,200 74414,200 – 14,250 74714,250 – 14,300 74914,300 – 14,350 75214,350 – 14,400 75514,400 – 14,450 75714,450 – 14,500 76014,500 – 14,550 76314,550 – 14,600 76514,600 – 14,650 76814,650 – 14,700 77014,700 – 14,750 77314,750 – 14,800 77614,800 – 14,850 77814,850 – 14,900 78114,900 – 14,950 78414,950 – 15,000 78615,000 – 15,050 78915,050 – 15,100 79115,100 – 15,150 79415,150 – 15,200 79715,200 – 15,250 79915,250 – 15,300 80215,300 – 15,350 80515,350 – 15,400 80715,400 – 15,450 81015,450 – 15,500 81215,500 – 15,550 81515,550 – 15,600 81815,600 – 15,650 82015,650 – 15,700 82315,700 – 15,750 82615,750 – 15,800 82815,800 – 15,850 83115,850 – 15,900 83315,900 – 15,950 83615,950 – 16,000 839

$16,000 – $16,050 $ 84116,050 – 16,100 84416,100 – 16,150 84716,150 – 16,200 84916,200 – 16,250 85216,250 – 16,300 85416,300 – 16,350 85716,350 – 16,400 86016,400 – 16,450 86216,450 – 16,500 86516,500 – 16,550 86816,550 – 16,600 87016,600 – 16,650 87316,650 – 16,700 87516,700 – 16,750 87816,750 – 16,800 88116,800 – 16,850 88316,850 – 16,900 88616,900 – 16,950 88916,950 – 17,000 89117,000 – 17,050 89417,050 – 17,100 89617,100 – 17,150 89917,150 – 17,200 90217,200 – 17,250 90417,250 – 17,300 90717,300 – 17,350 91017,350 – 17,400 91217,400 – 17,450 91517,450 – 17,500 91717,500 – 17,550 92017,550 – 17,600 92317,600 – 17,650 92517,650 – 17,700 92817,700 – 17,750 93117,750 – 17,800 93317,800 – 17,850 93617,850 – 17,900 93817,900 – 17,950 94117,950 – 18,000 94418,000 – 18,050 94618,050 – 18,100 94918,100 – 18,150 95218,150 – 18,200 95418,200 – 18,250 95718,250 – 18,300 95918,300 – 18,350 96218,350 – 18,400 96518,400 – 18,450 96718,450 – 18,500 97018,500 – 18,550 97318,550 – 18,600 97518,600 – 18,650 97818,650 – 18,700 98018,700 – 18,750 98318,750 – 18,800 98618,800 – 18,850 98818,850 – 18,900 99118,900 – 18,950 99418,950 – 19,000 99619,000 – 19,050 99919,050 – 19,100 1,00119,100 – 19,150 1,00419,150 – 19,200 1,00719,200 – 19,250 1,00919,250 – 19,300 1,01219,300 – 19,350 1,01519,350 – 19,400 1,01719,400 – 19,450 1,02019,450 – 19,500 1,02219,500 – 19,550 1,02519,550 – 19,600 1,02819,600 – 19,650 1,03019,650 – 19,700 1,03319,700 – 19,750 1,03619,750 – 19,800 1,03819,800 – 19,850 1,04119,850 – 19,900 1,04319,900 – 19,950 1,04619,950 – 20,000 1,049

If your 5.25% income for the tax table is less than $10, your tax is “0.”

$20,000 – $20,050 $1,05120,050 – 20,100 1,05420,100 – 20,150 1,05720,150 – 20,200 1,05920,200 – 20,250 1,06220,250 – 20,300 1,06420,300 – 20,350 1,06720,350 – 20,400 1,07020,400 – 20,450 1,07220,450 – 20,500 1,07520,500 – 20,550 1,07820,550 – 20,600 1,08020,600 – 20,650 1,08320,650 – 20,700 1,08520,700 – 20,750 1,08820,750 – 20,800 1,09120,800 – 20,850 1,09320,850 – 20,900 1,09620,900 – 20,950 1,09920,950 – 21,000 1,10121,000 – 21,050 1,10421,050 – 21,100 1,10621,100 – 21,150 1,10921,150 – 21,200 1,11221,200 – 21,250 1,11421,250 – 21,300 1,11721,300 – 21,350 1,12021,350 – 21,400 1,12221,400 – 21,450 1,12521,450 – 21,500 1,12721,500 – 21,550 1,13021,550 – 21,600 1,13321,600 – 21,650 1,13521,650 – 21,700 1,13821,700 – 21,750 1,14121,750 – 21,800 1,14321,800 – 21,850 1,14621,850 – 21,900 1,14821,900 – 21,950 1,15121,950 – 22,000 1,15422,000 – 22,050 1,15622,050 – 22,100 1,15922,100 – 22,150 1,16222,150 – 22,200 1,16422,200 – 22,250 1,16722,250 – 22,300 1,16922,300 – 22,350 1,17222,350 – 22,400 1,17522,400 – 22,450 1,17722,450 – 22,500 1,18022,500 – 22,550 1,18322,550 – 22,600 1,18522,600 – 22,650 1,18822,650 – 22,700 1,19022,700 – 22,750 1,19322,750 – 22,800 1,19622,800 – 22,850 1,19822,850 – 22,900 1,20122,900 – 22,950 1,20422,950 – 23,000 1,20623,000 – 23,050 1,20923,050 – 23,100 1,21123,100 – 23,150 1,21423,150 – 23,200 1,21723,200 – 23,250 1,21923,250 – 23,300 1,22223,300 – 23,350 1,22523,350 – 23,400 1,22723,400 – 23,450 1,23023,450 – 23,500 1,23223,500 – 23,550 1,23523,550 – 23,600 1,23823,600 – 23,650 1,24023,650 – 23,700 1,24323,700 – 23,750 1,24623,750 – 23,800 1,24823,800 – 23,850 1,25123,850 – 23,900 1,25323,900 – 23,950 1,25623,950 – 24,000 1,259

form 2 instructions - mass. · pdf fileplaced in service before january 1, 2014 (before...

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