Schedule 4% Surtax: 4% Surtax on Taxable Income Over $1 Million (2024)
Massachusetts · Massachusetts DOR · Used for tax years 2024
Massachusetts Schedule 4% Surtax calculates the 2024 surtax on combined income amounts above $1,053,750. It combines amounts from specified return lines, subtracts the surtax threshold, and applies a 4% rate.
Who files this form
The 2024 Schedule 4% Surtax is for filers of Massachusetts Form 1, Form 1-NR/PY, Form 2, Form M-990T-62, and Form 3M.
Combine the amounts on lines 1 through 3. If the total is less than $1,053,750, the 4% surtax does not apply, and the form says not to submit this schedule.
What you'll need
Have your taxpayer name, Social Security number or employer identification number, and the applicable return and schedules available. The schedule uses these amounts:
- Form 1: line 19; Schedule B, line 37; and Schedule D, line 21, or Schedule D-IS, the sum of Part 3, column 1, lines 26 a-h.
- Form 1-NR/PY: line 23; Schedule B, line 37; and Schedule D, line 21, or Schedule D-IS, the sum of Part 3, column 1, lines 26 a-h.
- Form 2: lines 21, 29, and 37.
- Form M-990T-62: lines 21 and 25.
- Form 3M: line 1; Schedule B, line 27; and Schedule D, line 16.
How to file
Enclose this schedule with your return, unless line 4 is less than $1,053,750, in which case the form says not to submit it.
To complete the calculation:
- Enter the amounts from the applicable return and schedules on lines 1 through 3. Each amount must be no less than zero.
- Combine lines 1 through 3 on line 4.
- Enter the 2024 surtax threshold of $1,053,750 on line 5.
- Subtract line 5 from line 4 and enter the result on line 6.
- Multiply line 6 by .04 (4%) and enter the result on line 7.
Transfer the line 7 amount to the applicable return:
- Form 1, line 28b.
- Form 1-NR/PY, line 32b.
- Form 2, line 41b.
- Form M-990T-62, line 29b.
- Form 3M, line 9b.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Entering negative amounts on lines 1 through 3: Each line says the amount must be no less than zero.
- Submitting the schedule when line 4 is below $1,053,750: The form says the surtax does not apply and not to submit the schedule.
- Leaving the schedule out of your return when submitting it: The form says to enclose it with your return.
Questions people ask
What is the surtax threshold for tax year 2024?
The threshold printed on line 5 is $1,053,750.
Is the 4% applied to the entire amount on line 4?
No. The schedule tells you to subtract the threshold from line 4, then multiply the result by .04 (4%).
Should I submit this schedule if line 4 is below the threshold?
No. If line 4 is less than $1,053,750, the form says the surtax does not apply and not to submit the schedule.
Do I submit this schedule separately from my return?
The form says to enclose the schedule with your return.