Preparing Massachusetts affiliated group election combined returns when the state and federal groups are the same

Alerts and notices

Use this procedure to ensure the correct preparation of Massachusetts affiliated group election combined income tax returns if the members of the Massachusetts affiliated group are the same as those included in the federal consolidated group. If preparing a combined return and not making or not subject to an affiliated group election, see Preparing Massachusetts Excise for Taxpayers Subject to Combined Reporting income tax returns.

  1. Add Massachusetts to the parent client and the applicable subsidiary clients. Complete all data entry for these member clients. Each member's state return should be complete and correct before proceeding to the next step.

    Note: Apportionment data entry must be completed for each member client, even if the client is 100 percent in-state. Apportionment data entry is accessed through View > Apportionment.

  2. Add Massachusetts to the federal consolidated client.

    Note: When adding Massachusetts to a consolidated federal client, the state automatically defaults to being a combined return.

    If the state is added as a C Corporation to a federal consolidated group, the consolidated functionality does not take place. The amounts from each member are not combined, and the combined forms and schedules are not available.

  3. Review all Massachusetts combined client input screens and complete any necessary remaining data entry.

    Note: The consolidated options to combine member amounts in the File > Client Properties > Advanced Properties > Options dialog do not apply to the Massachusetts combined client.

  4. Click the Combined folder in the Massachusetts folders block. Complete the necessary information on Screens MAAffil, MAComb, MACInc, MACAdj, MACCr, MACInv, MACRC, MACO, and MACAmend.
  5. To change amounts entered in the Massachusetts parent, eliminations, or subsidiary clients, go back to the original source of data entry. For instance, if you made a mistake when you entered the apportionment of the first subsidiary, close the consolidated client and reopen the first subsidiary. Choose View > Apportionment for that client and correct the data. Close the subsidiary client and reopen the consolidated client. The correct amount is now a part of the consolidated group return.
  6. Print and review the Massachusetts combined tax return.