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What is Massachusetts Bank Interest?

Asked Jan 27, 2008, 03:32 PM — 4 Answers
I have accounts in two national banks one of which has branches in Massachusetts. Does that mean I report only the interest I earned in that bank Form 1 line 5a. (Mass. Bank Interest)? I am Massachusetts Resident -- maybe that make all banks interests as Mass. Bank Interest?

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AtlantaTaxExpert's Avatar
AtlantaTaxExpert Posts: 19,862, Reputation: 3723
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#2

Jan 28, 2008, 09:32 AM


If you live in Massachusetts, then interest from EVERY source across the country and accros the globe is subject to Massachusetts state income tax, NOT just from MA banks.

State residents owe taxes to their home state on ALL income earned, regardless of the source. That is pretty universal for state taxes across the U.S.
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Errol Wentworth's Avatar
Errol Wentworth Posts: 1, Reputation: 1
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#3

Jan 30, 2008, 09:15 AM
It is important to remember that Massachusetts taxes bank interest at two different rates--a lower rates for Massachusetts banks, and a higher one for out of state banks. There is also a (small) exemption for Massachusetts bank interest.

The Mass Dept of Revenue has told me over the phone that if you can walk into a branch, then it is a Massachusetts bank. So, for example, E*Trade Bank is a Massachusetts bank because they do have a branch location in this state (one branch in Boston).

Hope that helps.
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AtlantaTaxExpert's Avatar
AtlantaTaxExpert Posts: 19,862, Reputation: 3723
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#4

Jan 30, 2008, 02:42 PM


Noted!
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HARP1030's Avatar
HARP1030 Posts: 1, Reputation: 1
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#5

Mar 19, 2009, 12:34 PM
Where on form 1 massachusetts tax return do I report interest from massachusetts banks from schedule
2k-1 line 5?
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