If you make under a certain income limit for your filing status, you may not be legally required to file a Massachusetts tax return. But it may be to your advantage to do so, especially if you qualify to claim certain credits or if you are entitled to receive a refund.c  

Massachusetts subjects most forms of income to state taxation, including earned income from employment and self-employment, as well as some types of unearned income, including unemployment compensation, pension payments and gambling winnings. For a full list of taxable income sources, see the tax form instructions.c 

NOTE: Due to a legal and state holiday, the Massachusetts tax filing deadline has been extended to April 19, 2011.c 

To begin preparing your Massachusetts tax return, gather all of your required tax information. This will save you from looking around for paperwork after you start the form. You will need the following:

1. Your Social Security number
2. Your current mailing address
3. The full name and Social Security number of your spouse, if you are filing a joint tax return
4. Proof of your earned income received during the tax year - For employees, this will be the total taxable wages reported on your Form W-2 or Form 1099. For self-employed individuals, this will be the amount of gross earnings minus any qualified business expenses.
5. Proof of your unearned income that is subject to Massachusetts state tax - Examples of taxable unearned income include unemployment compensation, rental property income, and lottery winnings.
6. The total amount of your state income taxes paid during the year - If you are employed, this will appear on your Form W-2 as state taxes withheld. If you are self-employed, this will be the total of any estimated state tax payments you made.
7. A copy of your completed federal tax return, if you are filing one
   

If you are required to submit a federal return, do so before you begin your Massachusetts tax form. You may have to attach copies of your federal Form 1040 schedules to your state return.c

Your next step is to get a copy of the Massachusetts state tax return. This form is called Form 1 "Massachusetts Individual Income Tax Return." If you have access to the Internet, you can download this form and the accompanying instructions from the Massachusetts Department of Revenue website. If you do not have Internet access, you can usually obtain a paper copy of these documents at your local library during tax season.c 

For the fastest return processing, consider filing your return electronically if possible. The state of Massachusetts offers free e-filing through the Department of Revenue WebFile program for most state residents. If you are due a refund, you will generally receive your refund six to eight weeks faster if you e-file. Should you decide to use tax software to prepare your federal return, you will usually have the option to include your state return for an additional fee.c 

If you choose to complete the form by hand, write clearly and use black ink to avoid any processing delays. Begin the form by entering your full name and Social Security number as well as your spouse's if applicable. Complete the address portion and select the filing status that you used on your federal return.c

Before you proceed with the return, stop and read the form instruction booklet to get a full explanation of the income adjustments you will need to make for taxable Massachusetts income as well as any state tax credits you can claim. Then enter the amount of the dependent exemptions you will claim on line 2 of the Massachusetts return. On line 3, enter your total earned income for the year. Then you will use lines 4 through 9 to report other sources of taxable income to arrive at your total state income on line 10.c 

Continue working the form by entering any qualified deductions on lines 11 through 16. Then you will subtract the deductions and your total exemptions on lines 17 through 19. Add in any interest and dividend income on line 20 to calculate your total state taxable income on line 21. Consult the tax table located in the instruction booklet to assess the amount of state tax owed on your taxable income and enter this on line 22. Adjust for any additional taxes to figure your total tax on line 27.c 

From here, you will subtract all of your eligible state tax credits and your state income taxes already paid through withholding or estimated tax payments. What remains afterward will either be a refund on line 46 or a balance due on line 47. Sign and date the return at the bottom of page one and have your spouse do the same. Make a copy of the completed form for your personal records.c 

If you are due a refund, you can choose to receive your payment via direct deposit by entering your bank routing number and your personal account number on page 2 of the return. If you owe a balance, make out a check or money order for the tax. Send any payment, along with the completed form, to the address listed on the return. You will also be required to complete Schedule HC "Health Care Information" along with your return.c

Submit your return and any payment due on or before April 19, 2011, to avoid late penalties and interest. If you will be unable to file your return before the filing deadline, you should file a Massachusetts state tax extension.