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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, Line 1.

To enter or edit Form W-2:

  1. From within your TaxAct return (Online or Desktop) click State. On smaller devices, click in the upper left-hand corner, then State.
  2. Click Wages and Salaries in the Federal Quick Q&A Topics menu to expand the section and then click Wage income reported on Form W-2
  3. Click +Add Form W-2 to create a new copy of the form or click Review to review a form already created
  4. The program will proceed with the interview questions to enter the appropriate information

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

  1. Click State
  2. Click Massachusetts 
  3. Click Income Topics to expand the category and then click Wage Adjustment 
  4. Enter the amount of the duplicated wages as a negative number

If a wage adjustment is made on the Massachusetts return, you will not be able to e-file your Massachusetts return. This is a Massachusetts state guideline, not a TaxAct limitation.

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