M-990T: Unrelated Business Income Tax Return (2024)
Massachusetts · Massachusetts DOR · Used for tax years 2024
Massachusetts Form M-990T is the 2024 Unrelated Business Income Tax Return. It reports unrelated business taxable income, calculates the excise tax, and accounts for credits, payments, and any refund or balance due. This return must be filed electronically; paper returns are not
What you'll need
Have these items ready to complete the return:
- The corporation’s name, federal identification number, mailing address and contact information.
- Employee counts for Massachusetts and worldwide. Both are required.
- U.S. Form 990T, Schedule A, Parts I and II, for the income and deductions reported on Massachusetts Schedule E.
- Information about estimated tax payments, any prior-year overpayment applied to this year, extension payments and pass-through entity withholding.
Depending on the entries you report, the form also calls for:
- Schedule CMS for credits and refundable credits, and Schedule CRS for credit recapture.
- Schedule D from U.S. Form 1120 for capital gain net income, and U.S. Form 4797 for gains or losses reported from that form.
- Statements for partnership or S corporation income or loss, and for other income.
- Schedule ABIE for exceptions to the intangible expense add-back, and Schedule ABI for exceptions to the interest expense add-back.
- Schedule F for the income apportionment percentage, when applicable, and Schedule NOL for the loss carryover deduction.
How to file
File electronically. Paper returns will not be accepted.
For help with electronic filing, call 617-887-6367. The form points to the DOR electronic filing and payment requirements page for more information.
The form also prints this mailing address: Massachusetts Department of Revenue, PO Box 7067, Boston, MA 02204. However, it explicitly says this return is e-file only, so that address is not a paper-filing option for Form M-990T.
Common mistakes
- Submitting a paper return. The form warns that paper returns will not be accepted.
- Leaving employee counts blank. Massachusetts and worldwide employee counts are both marked required.
- Using cents. The form directs you to use the whole-dollar method.
- Claiming credits unrelated to the reported activity. Any credit claimed must be determined with respect to the unrelated business activity reported on this return.
- Counting a prior-year overpayment twice. Line 10 must not include the amount entered on line 9.
- Using line 12 on an original return. The payment-with-original-return line is only for amended returns.
- Entering negative amounts where prohibited. Form M-990T, line 6, and Schedule E, Part III, line 22, cannot be less than zero.
Questions people ask
How is the initial excise amount calculated?
Multiply the total unrelated business taxable income on line 1 by 0.08, or 8%, and enter the result on line 2. Line 4 adds any credit recapture and additional tax on installment sales before credits are applied.
Can an overpayment be applied to next year’s estimated tax?
Yes. Line 17 records the amount you want credited to next year’s estimated tax. Line 18 shows the amount to be refunded, calculated by subtracting line 17 from line 16.
Do I need to report digital asset activity?
The form asks you to fill in the digital asset indicator if, at any time during the year, the corporation received a digital asset as a reward, award or payment for property or services, or sold, exchanged or otherwise disposed of a digital asset or a financial interest in one.
Can DOR discuss the return with my paid preparer?
The form includes an indicator you can fill in to allow DOR to discuss the return with the paid preparer.