MA NRCR: Nonresident Composite Return and Instructions (2025)

Who files this form

Massachusetts allows a partnership or S corporation to file Form MA NRCR on behalf of two or more qualified nonresident members who elect to participate. This is an optional composite return, not a requirement for every pass-through entity.

Participating members must:

• Be individuals, entities taxed under the Internal Revenue Code as individuals, or estates or trusts of deceased nonresident members.
• Be nonresidents for the entire taxable year.
• All have the same tax year.
• Sign a statement electing to participate.
• Agree to Massachusetts tax jurisdiction.
• Waive the right to claim deductions, exemptions and credits allowed under MGL chapter 62, sections 3, 5 and 6.

Professional athletic teams filing a composite return for qualifying nonresident team members must use Form 1-NR/PY, not Form MA NRCR.

When it's due

• 2025 calendar-year return: File on or before April 15, 2026.
• 2025 extension payment: The instructions identify April 15, 2026 as the deadline for payments made with Form M-4868.
• 2025 final-quarter estimated payment: Include any last-quarter payment made on or before January 15, 2026 in the estimated payments reported on line 19.

An automatic six-month filing extension is available if at least 80% of the total tax ultimately due has been paid by the prescribed payment date. Composite payments must satisfy each eligible member’s individual payment requirement for the pass-through entity’s Massachusetts-source income.

What you'll need

Have these records and forms ready, as applicable:

• The filing entity’s full name, address and federal identification number, plus the filing agent’s name.
• Signed participation statements from eligible members. For a tiered composite return, the designated filing agent must have signed statements from the participating entities’ filing agents.
• Massachusetts-source income totals for all participating members, including income from upper-tier entities included in the return.
• Schedules B, D and E when applicable. File the relevant schedule if any member has an entry, regardless of amount.
• Electronic Schedule 2K-1, 3K-1 or SK-1 for each participating nonresident member, following the special instructions for tiered entities.
• Records of estimated payments, prior-year overpayments applied to this year, extension payments and applicable entity-level tax payments.
• Schedule 62-WH and state copies of supporting forms or schedules if reporting withholding on line 17. The instructions say the claim will not be allowed without them.
• Form M-8453 CR, which must be completed and retained in your files.

Additional forms may apply, including Schedule TDS for inconsistent filing positions and Form M-2210 for estimated-tax underpayments.

How to file

File electronically. Form MA NRCR and all accompanying schedules must be e-filed. Paper returns will not be accepted. Electronic filing requirements also apply to amended returns and disputes.

Report summary amounts for all participating members. The designated filing agent must enter an electronic signature and complete and retain Form M-8453 CR.

Pay any balance due in full online at MassTaxConnect with the electronically filed return. Estimated tax payments must also be made online through MassTaxConnect.

For questions about electronic filing, call 617-887-6367. See the DOR electronic filing and payment requirements for more information.

Common mistakes

• Sending a paper return: Paper versions are not accepted, including accompanying schedules.
• Reporting the 4% surtax on MA NRCR: The instructions expressly say not to report it on this form. Affected members must file Form 1-NR/PY.
• Double-counting prior-year amounts: Do not include a prior-year refund on line 18, or include the line 18 amount again on line 19.
• Treating an overpayment election as reversible: Once you apply an overpayment to next year’s estimated tax, it cannot later be refunded or applied to additional tax for the current year.
• Leaving an inconsistent filing position undisclosed: When disclosure is required, attach Schedule TDS and mark the oval. Failure to disclose can trigger an additional penalty.
• Delaying filing because you cannot pay in full: The instructions advise filing when due even if full payment is not possible. Late filing and late payment can result in interest and penalties.

Questions people ask

Which tax year should the composite return use?

Use the eligible members’ personal tax year, which is the same as their federal tax year. All participating members must have the same tax year. If they all use a fiscal year, the composite return must also use that fiscal year.

Does participating in a composite return cover the 4% surtax?

No. For tax year 2025, nonresident taxpayers whose total taxable income exceeds $1,083,150 must file Form 1-NR/PY to report the surtax, even if they participate in a composite return. Their calculation must include all Massachusetts-source income, including income reported on composite returns.

Can a member claim their withholding credit on MA NRCR?

The instructions specifically state that members cannot take credit for withholding on MA NRCR. A member who needs to claim that credit must file Form 1-NR/PY.

How is the entity-level PTE excise credit reported?

The available credit is 90% of each qualified member’s proportionate share of PTE excise paid. For line 22, enter 100% of the applicable PTE excise paid in the box provided, then enter 90% of that amount on line 22.

What if I discover an error after filing?

File an electronic amended return with the corrected information and mark the appropriate amended-return oval. Complete the entire return and recompute the tax. An amended return may increase or decrease the tax.

Official sources

• https://www.mass.gov/lists/dor-tax-forms-and-instructions