If your pension is not exempt, you should generally enter here the taxable amount reported on your federal return. In some cases, however, MA law requires an adjustment to the federal amount. Distributions from annuity, stock bonus, pension, profit-sharing or deferred payment plans or contracts described in Sections 403(b) and 404 of the U.S. IRC must be adjusted to account for your contributions that have been previously taxed. Subtract from such income the amount of your contributions which was previously taxed by Massachusetts until the total of your taxed contributions is received. If your pension falls into this category, enter the adjusted amount here. If you are receiving distributions from an IRA or Keogh plan, do not report the income here; instead, enter them under additions where it specifically asks for them.

Note: Massachusetts does not tax Social Security income; therefore, you should not report such income on Massachusetts Form 1.

What pensions are exempt?

Pension income received from a contributory annuity, pension, endowment or retirement fund of the U.S. Government or the Commonwealth of MA and its political subdivisions.

Pensions from other states or its political subdivisions which do not tax such income from MA or its political subdivisions may be eligible to be deducted from MA taxable income. This pension income, however, should be reported here instead, enter them under subtractions where it specifically asks for them.

Noncontributory pension income or survivorship benefits received from the U.S. uniformed services (Army, Navy, Marine Corps, Air Force, Coast Guard, commissioned corps of the Public Health Service and National Oceanic and Atmospheric Administration) is exempt from taxation in MA.

MA state court judges who were appointed on or after January 2, 1975 are participants in the Massachusetts contributory retirement system and their pensions are nontaxable. State court judges who were appointed prior to January 2, 1975 receive taxable noncontributory pensions. If you retired under Chapter 32, Sections 5660 of MA General Laws and are a veteran who began Massachusetts state service prior to July 1, 1939, all or part of your pension income may be subject to tax. If you elected to receive your proceeds from contributions in one lump-sum distribution, your original contributions to the retirement system are not taxable. Noncontributory pension income received after a lump-sum distribution is fully taxable and should be reported here.

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