As a part-year resident or nonresident, can I qualify for No Tax Status or the Limited Income Credit?
For nonresidents and part-year residents, Massachusetts General Laws require that Massachusetts Adjusted Gross Income must be computed as if you had been a Massachusetts resident for the entire taxable year. In determining whether or not you qualify for No Tax Status or the Limited Income Credit, you must consider all of your income, including that which is not taxable in Massachusetts. Nonresident taxpayers that receive military compensation and file Massachusetts Form 1-NR/PY should not include such military compensation when determining whether they qualify for “no tax status” or the “limited income credit.” See TIR 04-6: Effect of the Federal Servicemembers Civil Relief Act (P.L. 108-189) on Massachusetts Nonresidents with Military Compensation. Additional information is available in the Form 1-NR/PY Instructions . A more in-depth explanation and the TIR mentioned above are available in the No Tax Status and Limited Income Credit section of a Guide to Taxes.
