63D-ELT: Entity Level Tax (2024)
Massachusetts · Massachusetts DOR · Used for tax years 2024
Massachusetts Form 63D-ELT is the entity-level tax return for electing pass-through entities. It reports qualified income subject to the 5% entity-level tax, tax payments, balances due or overpayments, and qualified members’ income and refundable credits. The return and all accom
Who files this form
Form 63D-ELT is for eligible pass-through entities that make the annual voluntary election to pay Massachusetts entity-level tax under MGL chapter 63D. The form lists S corporations, partnerships, and trusts as entity types.
The election is irrevocable once made and applies only to the current taxable year.
What you'll need
Have the information requested on the form ready:
- The entity’s name, federal identification number, address, entity type, and taxable period.
- The total number of members and the number of Massachusetts qualified members.
- Qualified members’ names, taxpayer identification numbers, addresses, member types, income, capital gains or losses, entity-level tax, and refundable credits.
- Income, loss, and adjustment amounts for the applicable income section.
- Prior-year overpayments applied to this year, estimated entity-level tax payments, and payments made with an extension. If amending, include the tax payment made with the original return.
The form also directs filers claiming the M-2210 penalty exception to include Form M-2210.
How to file
File Form 63D-ELT and all accompanying schedules electronically. Paper returns will not be accepted.
- S corporations and partnerships complete Section 1. Trusts complete Section 2.
- Report total qualified income as an aggregate amount from all partners, shareholders, or beneficiaries with qualified taxable income subject to the entity-level tax.
- All eligible electing entities complete the tax calculation section. Multiply the income on line 1 by .05 to calculate the tax on line 2.
- Have the declaration signed by the president, treasurer, or another principal officer.
For electronic filing questions, call 617-887-6367. See the Department of Revenue’s electronic filing and payment requirements for more information.
Common mistakes
- Submitting a paper return: The form warns that paper returns will not be accepted. The return and all accompanying schedules must be filed electronically.
- Selecting multiple entity types: The form directs you to select only one entity type.
- Using the original-return payment line on a return that is not amended: Line 6 of the tax calculation is for use only when amending a return.
Questions people ask
What is the entity-level tax rate shown on the form?
The rate is 5.0% of income subject to the entity-level tax.
Which income section should my entity complete?
S corporations and partnerships complete Section 1. Trusts complete Section 2.
Can the entity revoke its election?
No. The declaration states that the election is irrevocable once made and is valid only for the current taxable year.
Who must sign the declaration?
The president, treasurer, or another principal officer must sign it.
Can an overpayment be refunded or applied to next year?
The form provides separate lines for an overpayment to be applied to next year and an amount to be refunded.