3: Partnership Return of Income (2024)
Massachusetts · Massachusetts DOR · Used for tax years 2024
Massachusetts Form 3 is the 2024 Partnership Return of Income. It reports partnership income or loss, Massachusetts adjustments, withholding, and composite return payments. The return must be filed electronically; paper returns are not accepted.
What you'll need
Have these forms and details available to complete Form 3:
- The partnership’s federal identification number, address, business activity, accounting method and designated tax matters partner’s information.
- U.S. Form 1065 and the applicable schedules, including Schedules B, K, D, L, M-1 and M-2. Form 3 uses information from these federal forms.
- One Schedule 3K-1 for each person who was a partner at any time during the tax year. Attach each schedule and enter the number attached.
- Other federal forms used for applicable entries, such as Form 8825 for rental real estate, Form 4562 for depreciation and the IRC § 179 deduction, and Schedule F for farm income.
- Schedule CMS for other credits and Schedule CRS for credit recapture, if applicable.
For applicable entries in Part 2, the form calls for attaching U.S. Form 1125-A for cost of goods sold, U.S. Form 4797 for the reported gain or loss, and U.S. Form 7205 for the energy efficient commercial buildings deduction. Attach supporting statements where the form requests them.
How to file
File electronically. The Massachusetts Department of Revenue will not accept paper versions of the 2024 Form 3.
For questions about electronic filing, call 617-887-6367. See the Department’s electronic filing and payment requirements for more information. The form also refers filers to TIRs 16-9 and 21-9.
Common mistakes
- Sending a paper return. Form 3 is e-file only. Paper returns will not be accepted.
- Including nonbusiness items in Part 2, lines 1a through 22. The printed note says to include only trade or business income and expenses on those lines.
- Skipping the income reconciliation because you filed federal Schedule M-3. The form says you must still complete the reconciliation section on page 10.
- Always dividing the apportionment total by four. The note for line 46 says that if an apportionment factor is inapplicable, divide by the number of times each applicable factor is used.
Questions people ask
Do I need a Schedule 3K-1 for someone who was a partner for only part of the year?
Yes. Attach one Schedule 3K-1 for each person who was a partner at any time during the tax year.
Who signs Form 3?
The form has a signature and date field for a general partner. It also has a separate signature and date field for a paid preparer.
When should I complete the Income Apportionment Schedule?
Complete it only if all three conditions apply: the partnership has one or more corporate or nonresident individual partners; it earned income from business activities in another state; and those activities give that state jurisdiction to levy an income tax or franchise tax.
Can the annual election to pay tax at the entity level be revoked?
No. Item N states that the annual voluntary election under MGL chapter 63D is irrevocable.