Ibrahim Gardner
Students in Massachusetts have several tax-related considerations to keep in mind, particularly regarding their residency status, income, and eligibility for deductions and exemptions. Whether an individual is considered a resident or non-resident for tax purposes in Massachusetts depends on factors such as the type of abode and the intention to return home during school breaks. Additionally, the state's tax guidelines determine the taxation of income from various sources, including employment, fellowships, and investments. Understanding these factors is crucial for students to fulfill their tax obligations accurately and take advantage of applicable deductions, such as those for undergraduate student loan interest and tuition payments.
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What You'll Learn
International students must mail tax returns
In Massachusetts, students who are or have been hired as Harvard employees are subject to Massachusetts income tax withholding. The state taxes residents on income from all sources, and non-residents on income derived from Massachusetts. Additionally, international students on F-1 visas, who are considered non-resident aliens for tax purposes, are required to file a US tax return (Form 1040-NR) for income from US sources.
International students, in general, are required to file a tax return as a condition of their visa, but they may not need to pay taxes to the American government due to various benefits and exemptions. They are also not allowed to file taxes electronically and must mail their tax returns to the Internal Revenue Service (IRS). The address for mailing tax returns is:
> Internal Revenue Service Center, Austin, TX 73301-0215, U.S.A.
International students must also submit Form 8843 with the IRS, which is a statement required by the US government for certain non-resident aliens. This form must be filed even if the student did not earn any income during their time in the US. The deadline for filing Form 8843 is June 15, 2025, while the deadline for filing federal income tax returns is April 18.
It is important to note that international students may have to file state tax returns and pay state income taxes even when no federal return is due. In Massachusetts, international students must file a non-resident tax return (Form 1-NR/PY) if they earned over $8,000 in the state during the previous year. They should also submit Form 1099-HC (proof of medical health insurance) with their tax filing if they receive it.
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Non-residents pay tax on MA-sourced income
In Massachusetts, an individual is considered a resident for tax purposes if they are domiciled in the state or have a permanent place of abode and spend more than 183 days of the taxable year there. A non-resident, on the other hand, is taxed only on income derived from or connected to sources in Massachusetts. This includes income from performing services or carrying out work physically within the state.
Non-residents must file a Massachusetts Income Tax Return if their gross income exceeds $8,000, regardless of whether the income was derived from sources inside or outside the state. To do so, they must use Form 1-NR/PY - Massachusetts Nonresident or Part-Year Resident Income Tax Return. This form is also used to request a refund if an employer mistakenly withheld Massachusetts income tax.
The tax treatment of non-residents in Massachusetts is based on their residency status and not the type of visa they hold. As a non-resident, your exemptions and deductions are based on the income you report and are calculated using the Nonresident Deduction and Exemption Ratio. Additionally, non-residents may qualify for certain personal income tax credits, which can reduce the amount of tax owed.
It is important to note that if a non-resident determines that they will maintain a permanent place of abode and spend more than 183 days in Massachusetts, their employer is required to report all gross salary and wages to the state, although they are not mandated to withhold Massachusetts income tax. Ultimately, the responsibility for ensuring tax compliance rests with the individual taxpayer.
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Students earning under $8000 don't file MA tax return
In Massachusetts, residents are taxed on their income from all sources, while non-residents are taxed only on income derived from the state. If your gross income in Massachusetts is less than $8000, you are not required to file a Massachusetts tax return. This applies to both full-year and part-year residents.
Students who are hired as employees at Harvard are subject to Massachusetts income tax withholding. Whether or not an individual has to pay taxes depends on the state's tax guidelines. In general, those living in institutional housing, such as dormitory rooms, are not considered to have established residence in Massachusetts for tax purposes. However, international students with income in the United States are required to file income tax returns, and F-1 and J-1 visa holders with U.S.-source taxable income must file a tax return as well.
It is important to note that tax requirements can vary depending on individual circumstances, and students should refer to the Massachusetts Department of Revenue website or seek specific advice to ensure they are complying with the relevant tax laws.
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MA residents taxed on all income sources
In Massachusetts, residents are taxed on all income sources, including foreign earned income. An individual is considered a resident for tax purposes if they are domiciled in Massachusetts, maintain a permanent place of abode in the state, and spend more than 183 days of the taxable year there.
If you are a student who is a permanent resident of Massachusetts, you are subject to the state's income tax. This includes international students who are considered permanent residents for tax purposes if they have lived in the US for five years or more. Students who are employed by their university, such as at Harvard or Hampshire College, are also subject to Massachusetts income tax withholding.
Massachusetts allows deductions for tuition payments made by taxpayers for themselves or their dependents pursuing undergraduate degrees. There is also a deduction for interest paid on qualified undergraduate student loans, up to an annual maximum of $2,500.
If you are a non-resident of Massachusetts, you are only taxed on income derived from sources within the state. This includes wages earned by non-residents who perform services in Massachusetts. If you are a non-resident with an annual gross income of more than $8,000 from Massachusetts sources, you must file a non-resident tax return.
Part-year residents of Massachusetts are generally taxed on all their income while they are residents, regardless of the source. They can take deductions in proportion to the number of days they were a resident, and they may also qualify for certain personal income tax credits.
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MA student loan interest deductions
Students in Massachusetts are subject to tax depending on their residency status and income. If a student has earned over $8,000 in Massachusetts during the previous year, they must file a Massachusetts non-resident tax return (Form 1-NR/PY). Generally, students living in institutional housing such as dormitories are not considered to have established residency for tax purposes.
International students are subject to different tax requirements and are required to mail their tax returns to the Internal Revenue Service. They cannot file taxes online.
Massachusetts allows a deduction for tuition payments made by taxpayers for themselves and their dependents who attend a qualifying two or four-year college leading to an undergraduate degree, diploma, or certificate. This deduction is not applicable for tuition payments for students pursuing graduate degrees.
The state also allows two student loan interest deductions for interest paid on a qualified education loan:
- The federal deduction for both graduate and undergraduate student loan interest paid (reported on Schedule Y, with a maximum amount allowed)
- The Massachusetts deduction for interest paid on a qualified undergraduate student loan (reported on Schedule Y, which is unlimited)
The deduction is allowed for interest paid by the taxpayer, up to an annual maximum of $2,500, on a qualified education loan for undergraduate or graduate education, subject to taxpayer income limitations. This deduction begins to phase out for taxpayers with a federal modified adjusted gross income (MAGI) in excess of $75,000 ($154,000 for joint returns) and is completely phased out for taxpayers with a federal MAGI of $90,000 or more ($185,000 or more for joint returns).
It is important to note that a taxpayer may not claim both deductions for the same interest payments.
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Frequently asked questions
It depends on the student's residency status, income, and the source of their income. If a student is a non-resident for tax purposes and their gross income in Massachusetts is less than $8,000, they are not required to file a state tax return.
Generally, if an individual has established a residence in Massachusetts, they are considered a resident for tax purposes. Students living in institutional housing, such as dormitories, are typically not considered to have established a residence. However, factors such as leasing a residence outside of the school or having a permanent residence elsewhere may also come into play.
International students on certain visas may be subject to tax withholding on their income, including income from on-campus jobs, scholarships, and fellowships. They must file their tax returns by mail and may need to complete specific forms, such as Form 8843 and Form 1099-HC.
Yes, Massachusetts offers various tax deductions for students, including deductions for tuition payments, interest paid on qualified undergraduate student loans, and rent paid for a principal residence in the state. Additionally, students may be eligible for education-related tax deductions and credits, such as those for college tuition and student loans.
Fellowship stipends for domestic students are typically not subject to tax withholding and are self-reported. However, for international students or non-resident aliens for tax purposes, fellowship stipends are taxable and must be reported on Form 1042-S for federal tax purposes.
