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If you have a Form W-2 reporting wages for Massachusetts and another state, these wages may duplicate on the Massachusetts return. If this is the case, you will need to make an adjustment on the Massachusetts return.

On Line 3 of Form 1 report total state wages and allocated tips from Form(s) W-2. Income earned by a Massachusetts resident in another state is subject to taxation in Massachusetts. Generally, your total wages and allocated tips will be the same amount reported on your federal 1040 or 1040A, Line 7, or 1040EZ, Line 1.

To enter the state wages, as reported on Form W-2, in the TaxACT program.

  1. From within your TaxACT return (Online of Desktop) click on the Federal Q&A tab
  2. Click Wages and Salaries to expand the category and then click Wage income reported on Form W-2
  3. Click Add to create a new copy of the form or click Review to review a form already created
  4. Click Step-by-Step Guidance
  5. The program will proceed with the interview questions to enter the appropriate information
  6. On the screen titled Wages - W-2 - State Information, enter the total amount of state wages and withholding

Once you have entered the state wages, you will need to make the adjustment on the Massachusetts return.

  1. Click on the State Q&A tab
  2. Click Massachusetts directly below the blue tabs
  3. Click Income Topics to expand the category and then click Wage Adjustment (this option will only appear if you have income entered for Massachusetts and a second state in step 6 above)
  4. Enter the amount of the duplicated wages as a negative number

If a wage adjustment is made on the Massachusetts return, you will receive a Red Alert during the electronic filing steps. The alert states:

"This return is not eligible for Massachusetts Electronic Filing. Massachusetts does not allow returns to be filed electronically where wages reported on Form 1 line 3 are less than the amount of wages in box 16 of all your W-2's. If the negative adjustment is necessary, attach an explanation to your return and you must file a paper Massachusetts return. Click Continue to see the next Electronic Filing Alert."

To review the alert:

  1. Click on the Filing tab
  2. Click E-File My Return
  3. Select Electronically file ONLY the Massachusetts return and click Continue
  4. Continue to the screen titled E-Filing - Massachusetts Qualification and click Start Qualification Alerts
  5. Continue until you reach the alert

You will not be able to electronically file your Massachusetts return. This is a Massachusetts state guideline, not a TaxACT limitation.


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