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- What is the difference between 1040, 1040A or 1040EZ?
- What is a 1099 form?
- Federal income tax brackets
- The ultimate state and federal tax submission faq
- What Are the Top 10 Tax Questions in the US?
- Am I Eligible for the Child Tax Credit?
- Glossary of frequently used tax terms from eSmart Tax
- What is State tax filing and why is it necessary?
- Freelancer Guide to Self-Employment Taxes Infographic
- Filing Taxes Late
New York Tax Form IT-150 - Resident Income Tax Return (Short Form) Instructions
Instructions for Short Form IT-150
Full-Year Resident Income Tax Return
What's new for 2007?
- New York City school tax credit increased - The New York City school tax credit has been increased for New York City residents with federal adjusted gross income (minus any IRA distributions) of $250,000 and less. If you are married filing jointly or a qualifying widow(er), the credit is increased to $290; for all others, the credit is $145. See pages 30 and 101.
- Solar energy system equipment credit expanded - Tenant-shareholders in a cooperative housing corporation or condominium owners may now claim a percentage of the qualified expenditures for qualified solar energy system equipment purchased and installed by the cooperative housing corporation or the condominium management association. For additional information, see Form IT-255, Claim for Solar Energy System Equipment Credit.
- New subtraction modification for living organ donors - A new subtraction from federal adjusted gross income is available to full-year New York State residents who, while living, donate one or more human organs to another person for human organ transplantation. The subtraction is equal to the unreimbursed expenses incurred by you, relating to your organ donation, for travel, lodging, and lost wages, up to a maximum of $10,000. See pages 23 and 90.
- New child and dependent care credit for New York City residents - For tax years beginning on or after January 1, 2007, New York City full-year and part-year residents with federal adjusted gross income of $30,000 or less who paid child care expenses for children under the age of four may be eligible to claim a new refundable New York City child and dependent care credit. This credit may be claimed in addition to the New York State child and dependent care credit. For additional information, see Form IT-216, Claim for Child and Dependent Care Credit, and its instructions.
- New historic homeownership rehabilitation credit - A new credit is available for qualified rehabilitation expenditures paid or incurred for the rehabilitation of a qualified historic home located in New York State. To be eligible, you must own and reside in the historic home in the year for which you claim the credit. The credit is equal to 20% of the qualified rehabilitation expenditures. For additional information, see Form IT-237, Claim for Historic Homeownership Credit, and its instructions.
- New volunteer firefighters' and ambulance workers' credit - A new $200 refundable credit is available to full-year New York State residents who are active volunteer firefighters or volunteer ambulance workers for the entire tax year for which the credit is claimed. For additional information, see Form IT-245, Claim for Volunteer Firefighters' and Ambulance Workers' Credit.
- New rehabilitation of historic properties credit - A new credit for rehabilitation of historic properties is available to taxpayers who are allowed a federal credit with respect to a certified historic structure, as defined under Internal Revenue Code (IRC) section 47(c)(3), located in New York State. The credit is equal to 30% of the federal credit allowed for the same tax year. For additional information, see Form IT-238, Claim for Rehabilitation of Historic Properties Credit, and its instructions.
- New Empire State commercial production credit - A new credit is available to qualified commercial production companies, or sole proprietors of qualified commercial production companies, for qualified production costs paid or incurred. For additional information, see Form IT-246, Claim for Empire State Commercial Production Credit.
- Extension of tax shelter reporting requirements - The expiration date of the reporting requirements and related administrative provisions concerning the disclosure of certain transactions and related information regarding tax shelters, including those related to New York reportable transactions, has been extended to July 1, 2009. For additional information see TSB-M-07(6)I, Extension of Tax Shelter Provisions.
How do I fill in the forms?
Please follow these guidelines-
- Use black ink only (no red or other color ink or pencils) to print or type all entries.
- Write your numbers and X marks like this:
1 2 3 4 5 6 7 8 9 0 X
- Carefully enter your money amounts so that the dollar amount ends in the box immediately to the left of the decimal point and the cents amount starts in the box immediately to the right of the decimal point.
- Do not write in dollar signs, commas, or decimal points when making entries. You can round money entries to the nearest dollar (fifty cents or more is rounded up). If you do round numbers, you must be consistent and round all numbers.
- If you make an entry on a line, always fill in the cents area. If rounding or using a whole dollar amount, enter 00 in the cents boxes. Do not make any entry in areas that do not apply to you unless these instructions specifically direct you to do so; treat blank lines as zeros.
- Mark an X to fill in boxes as appropriate. Do not use a check mark. Keep your Xs and numerals inside the boxes.
Common words and phrases
To save space and enhance clarity, these instructions may use common abbreviations, including:
EIC = earned income credit federal
federal AGI = federal adjusted gross income
IRC = Internal Revenue Code
IRS = Internal Revenue Service
New York AGI = New York State adjusted gross income
NYS = New York State
NYC = New York City
Step 1 - Completing the taxpayer information section
Part A- Name and address
If you received a tax packet by mail, your peel-off name-and-address label is under the flap on the inside front cover. After you complete your return, place the label in the box at the top of your return.
Check the label for accuracy. If the label is correct, go to Part B.
If any information is wrong, cross it out and make the corrections directly on the label. Space is limited so if your name contains more than 36 characters, and it is correct except for missing final characters, do not make a correction.
If you do not have a label, write the following in the spaces provided:
- Name: First name, middle initial, and last name for you, and, if you are filing a joint return, your spouse.
- Mailing address: PO box or street address, city, state, and ZIP code where you wish to receive your mail (refund and correspondence).
Foreign addresses - Enter the information in the following order: city, province or state, and then country (all in the City, village, or post office box). Follow the country's practice for entering the postal code. Do not abbreviate the country name.
Part B- Permanent home address
If your mailing address is different from your permanent home address (for instance, you use a PO box), enter your permanent home address. Your permanent home address is the address of the dwelling place in New York State where you actually live, whether you or your spouse own or rent it.
- If you use a paid preparer and you use the preparer's address as your mailing address, enter the address of your permanent home in the space provided.
- If you are a permanent resident of a nursing home, enter the nursing home address.
- If you are in the armed forces and your permanent home was in New York State when you entered the military, enter your New York permanent home address regardless of where you are stationed.
- If you are married and maintain separate New York State residences and are filing separate New York State returns, enter as your permanent home address the address of your own residence.
- If you moved after December 31, 2007, enter your permanent home address as of December 31, 2007, not your current home address. Enter your new home address in the mailing address area if you want your refund and other correspondence sent there.
Part C -Social security numbers
You must enter your social security number(s) whether or not you are using the peel-off label. Be sure your social security numbers are in the same order as your names.
Part D- New York State county of residence
If this information appears correctly on your label, go to Part E.
If you do not have a label, or the information is incorrect, enter the county in New York State where you lived on December 31, 2007. If you live in New York City, use one of the following county names:
|If you live in||use county|
Part E- School district name and code
If you do not have a label or your school district code number is missing or incorrect:
Enter the correct code number and the name of your school district. This is the district where you were a resident on December 31, 2007. School districts and code numbers are on pages 42 through 45. If you do not know the name of your school district, contact your nearest public school.
You must enter your school district name and code number even if you were absent from the school district temporarily, if the school your children attended was not in your school district, or if you had no children attending school. Incorrect district names and code numbers may affect school aid.
Part F- Decedent information
If the taxpayer whose name is listed first on the return died after December 31, 2006, enter the date of death in the boxes labeled Taxpayer's date of death, in month, day, and last two digits of year order. If the taxpayer whose name is listed second died after December 31, 2006, enter the date of death in the boxes labeled Spouse's date of death. See Deceased taxpayers on page 39.
Step 2 - Filing status and items B through E
In nearly all cases you must use the same filing status that you used on your federal return. If you did not have to file a federal return, use the filing status you would have used if you had filed.
The only exceptions to this rule apply to married individuals who file a joint federal return and:
- one spouse is a New York State resident and the other is a nonresident or part-year resident. In this case, you must either: (a) file separate New York returns using filing status 3; or (b) file jointly, as if you both were New York State residents, using filing status 2.
- you are unable to file a joint New York return because the address or whereabouts of your spouse is unknown, you can demonstrate that reasonable efforts have been made to locate your spouse, and good cause exists for the failure to file a joint New York return. In this case, you may file a separate New York return using filing status 3.
- your spouse refuses to sign a joint New York return, reasonable efforts have been made to have your spouse sign a joint return, there exists objective evidence of alienation from your spouse such as judicial order of protection, legal separation under a decree of divorce or separate maintenance, or living apart for the twelve months immediately preceding application to file a separate return or commencement of an action for divorce or commencement of certain family court proceedings, and good cause exists for the failure to file a joint New York return. In this case, you may file a separate New York return using filing status 3.
Please help us reduce waste and taxpayer-financed paper, printing, and mailing costs. Mark an X in the box if you do not need a New York State income tax packet next year. Most taxpayers do not need a full tax packet with forms and instr uctions because they can download them from our Web site at www.nystax.gov , use our fax-on-demand system, or get them at some post offices, libraries, or community centers (see Need help? on the back cover). Other taxpayers e-file, use tax preparation software, or go to an accountant or tax preparer to have their returns completed. Please note that if you e-file, use software, or use a preparer, we will not send you a tax packet next year.
If we sent you a tax packet this year and you are using an original paper return (For m IT-150 or IT-201) from your packet, we will automatically send you a tax packet next year unless you mark an X in the box (next year's forms will be available in Januar y 2007). Consider your situation for next year and whether you will actually need these paper tax forms again. If not, mark an X in the box.
If you can be claimed as a dependent on another taxpayer's federal return, you must mark an X in the Yes box. You must mark the Yes box even if the other taxpayer did not claim you as a dependent. For example, if another taxpayer was entitled to claim you as a dependent on his or her federal return, but chose not to so that you can claim the federal education credit, you must mark the Yes box.
If you qualify for one or more of the four special conditions below, enter the specified 2-digit code(s).
Code 01 Combat zone - Enter this code if you qualify for an extension of time to file and pay your tax due under the combat zone or contingency operation relief provisions. See Publication 361, New York State Income Tax Information for Military Personnel and Veterans.
Code K2 Killed in action (KIA) - Enter this code if you are filing a return on behalf of a member of the armed forces who died while serving in a combat zone. See Publication 361 for information on filing a claim for tax forgiveness.
Code E3 Out of the country - Enter this code if you qualify for an automatic two-month extension of time to file your federal return because you are out of the country. For additional information, see When to file/Important dates on the back cover.
Code E5 Extension of time to file beyond six months - Enter this code if you qualify for an extension of time to file beyond six months under section 157.3(b)(1)(i) of the personal income tax regulations because you are outside the United States and Puerto Rico.
Step 3 - Federal income and adjustment
Lines 1 through 11
Federal income tax return information
The computation of your New York State (and New York City and Yonkers) income tax is based on information you repor ted on your federal income tax return, including your income and federal adjustments to income. If you did not file a federal return, you must repor t the same income and adjustments that you would have repor ted for federal income tax purposes if you had filed a federal return.
Use the chart below to complete lines 1 through 11.
To completeForm IT-150 line:
if you filed Form 1040EZ,transfer the amount from line:
or if you filed Form 1040A,transfer the amount from line:
or if you filed Form 1040,transfer the amount from line:
Be sure to enter your total federal adjustments to income on line 10. Write each adjustment and its amount in the shaded Identify area of line 10 as shown in the example above. If you need more room, attach a list showing each adjustment and its amount.
Step 4 - New York addintions and subtractions
New York additions
New York State taxes certain items of income not taxed by the federal government. You must add these New York additions, lines 12, 13, and 14, to your federal AGI.
Interest income on state and local bonds and obligations
Do you have interest income from state and local bonds and obligations from states other than New Yor k State or its local governments? If No , go to line 13.
If Yes , enter any such interest income that you received or that was credited to you dur ing 2007 that was not included in your federal AGI. This includes interest income on state and local bonds, interest and dividend income from tax-exempt bond mutual funds, and tax-exempt money mar ket funds that invest in obligations of states other than New York.
If you purchased a bond between interest dates, include the amount of interest you received during the year, less the seller's accrued interest (the amount accrued from the interest date preceding your purchase to the date you purchased the bond). If you sold a bond between interest dates, include the amount of interest you received dur ing the year plus the accrued interest amount (the amount accrued from the interest date preceding the date you sold the bond to the date you sold the bond). You should have received this information when you purchased the bond.
Public employee 414(h) retirement contribution
Are you a public employee of New York State or its local governments? If No, go to line 14.
If Yes, enter the amount of 414(h) retirement contributions, if any, shown on your wage and tax statement(s), federal Form W-2, if you are:
- a Tier 3 or Tier 4 member of the New York State and Local Retirement Systems, which include the NYS Employees' Retirement System and the NYS Police and Fire Retirement System; or
- a Tier 3 or Tier 4 member of the NYS Teachers' Retirement System; or
- an employee of the State or City University of New York who belongs to the Optional Retirement Program; or
- a member of any tier of the NYC Employees' Retirement System, the NYC Teachers' Retirement System, the NYC Board of Education Retirement System, the NYC Police Pension Fund or the NYC Fire Depar tment Pension Fund; or
- a member of the Manhattan and Bronx Surface Transit Operating Authority (MABSTOA) Pension Plan.
Do not enter contributions to a section 401(k) deferred arrangement, section 403(b) annuity or section 457 deferred compensation plan.
Use this line to report the following additions that are not specifically listed on Form IT-150.
Write in the applicable item number(s) (A-1 through A-5) and the amount of each addition in the white Identify area. Enter the total amount of these other additions in the money column. If you have an addition that is not identified, you must use Form IT-201.
A-1 New York's 529 college savings program transfers
If you transferred funds from New York's 529 college savings program to another state's program (whether for the same beneficiary or for the benefit of another family member), then include the amount from line 7 of the worksheet on page 19.
Include the applicable amounts from all existing accounts you own on lines 1 through 7 of the wor ksheet on page 19. Do not include amounts applicable to accounts that were closed in a pr ior tax year. If you are filing a joint retur n, include the applicable amounts from all existing accounts owned by you and your spouse.
Please note: Before completing the worksheet on page 19, you must first compute your Form IT-150, line 19, subtraction for New Yor k's 529 college savings program (S-2) for 2007.
|1. Total current and prior years' nonqualified withdrawals (see pg. 82) from your account(s)..||1.__________|
|2. Total current and prior years' contributions to your account(s)...........................................||2.__________|
|3. Total current year's (S-2) subtraction modification (see pg. 21) and prior years' subtraction modifications* ..............................||3.__________|
|4. Subtract line 3 from line 2...............................||4.__________|
|5. Total prior years' addition modifications**.......||5.__________|
|6. Add lines 4 and 5............................................||6.__________|
|7. Subtract line 6 from line 1. This is your current year addition modification. Enter this amount on Form IT-150, line 14...............||7.__________|
|If line 7 is 0 (zero) or less, there is no addback.|
|* These amounts are included in line 28 of your 1998, 1999, and 2000 Form IT-201 (S-26 subtraction modification); on Form IT-201-I, line 29 worksheet, line 1, for tax years 2001 through 2004; in line 19 of your 2005 and 2006 Form IT-150 (S-2 subtraction modification); and on Form IT-201-I, line 30 worksheet, line 1, for tax years 2005 and 2006.|
|** These amounts are included in line 21 of your 1998, 1999 (A-23 addition modification), and 2000 (A-22 addition modification) Form IT-201; on line 21 of your 2001 through 2004 Form IT-201; in line 14 of your 2005 and 2006 Form IT-150 (A-1 addition modification); and on line 22 of your 2005 and 2006 Form IT-201.|
|Keep this worksheet with your copy of your tax return.
A-2 Income from certain obligations of U.S. government agencies or instrumentalities
If , during 2007, you received or were credited with any interest or dividend income from any U.S. government authority, commission, or instrumentality that federal laws exempt from federal income tax but do not exempt from state income tax, then include that income. If you are uncertain whether a particular federal bond or obligation is subject to state income tax, contact the Tax Department (see Need help? on the back cover).
A-3 New York City flexible benefits program (IRC 125)
If your wage and tax statement(s), federal Form W-2, show(s) that an amount was deducted or deferred from your salary under a flexible benefits program established by New York City or certain other New York City public employers on your behalf, then include this amount.
Certain other New York City public employers include:
- City University of New York;
- NYC Health and Hospitals Corporation;
- NYC Transit Authority;
- NYC Housing Authority;
- NYC Off-Track Betting Corporation;
- NYC Board of Education;
- NYC School Construction Authority;
- NYC Rehabilitation Mortgage Insurance Corporation;
- Manhattan and Bronx Surface Transit Operating Authority; and
- Staten Island Rapid Transit Authority
A-4 Health insurance and the welfare benefit fund surcharge
If you were a career pension plan member of the NYC Employees' Retirement System or the NYC Board of Education Retirement System, and if your wage and tax statement(s), federal Form W-2, show an amount that was deducted from your salary for health insurance and the welfare benefit fund surcharge, then include this amount.
A-5 Sales or dispositions of assets acquired from decedents
Note: This addition is not required for property acquired from decedents who died on or after February 1, 2000.
Assets of decedents can sometimes have different bases for state and federal tax purposes. This requires adjustments in the gain or loss on the sale or disposition of those assets.
If, during the tax year, there was a sale or other disposition of any assets that had been inherited or sold or disposed of directly by the estate of a decedent, and if the estate of the decedent was not large enough to require a federal estate tax return, and if the executor or administrator of that estate had valued those assets for New York State income tax purposes at less than their value for federal income tax purposes, then include the difference between (a) the gain or loss on that sale or disposition that you figured into your federal AGI for the tax year and (b) the gain or loss that would have resulted if the assets had been valued the same for New York State income tax purposes as for federal income tax purposes.
New York subtractions
New York State does not tax certain items of income that are taxed by the federal government. You must deduct these New York subtractions (lines 16 through 19) from your federal AGI.
Pensions of New York State and local governments and the federal government
Did you receive a pension or other distribution from a NYS or local government pension plan or federal government pension plan?
If No, go to line 17.
If Yes, and the pension or distribution amount was included in your federal AGI, enter any pension you received, or distributions made to you, from a pension plan which represents a return of contributions in a year prior to retirement, as an officer, employee, or beneficiary of an officer or employee of:
- NYS, including State and City University of New York and NYS Education Department employees who belong to the Optional Retirement Program.
- Optional Retirement Program members may only subtract that portion attributable to employment with the State or City University of New York or the NYS Education Department.
- Certain public authorities, including:
- Metropolitan Transit Authority (MTA) Police 20-Year Retirement Program;
- Manhattan and Bronx Surface Transit Operating Authority (MABSTOA); and
- Long Island Railroad Company.
- Local governments within the state, including:
- NYS Teachers' Retirement System;
- NYC Teachers' Retirement System;
- NYC Teachers' Retirement IRC 403(b) plan; and
- NYC variable supplemental funds (VSF), including:
- Transit Police Officers' VSF
- Transit Police Superior Officers' VSF
- Housing Police Officers' VSF
- Housing Police Superior Officers' VSF
- Police Officers' VSF
- Police Superior Officers' VSF
- Firefighters' VSF
- Fire Officers' VSF
- Corrections Officers' VSF
- Corrections Captain and Above VSF.
- The United States, its territories, possessions (or political subdivisions thereof), or any agency or instrumentality of the United States (including the military), or the District of Columbia.
You may not subtract pension payments or return of contributions that were attributable to your employment by an employer other than a New York public employer, such as a private university, and any portion attributable to contributions you made to a supplemental annuity plan which was funded through a salary reduction program. However, these payments may qualify for the pension and annuity income exclusion described in the instructions for line 18 below.
Pension and annuity income exclusion
Did you enter an amount on line 5 or 6 that was not from a NYS or local government pension plan or federal government pension plan?
If No, go to line 19.
If Yes, and you were 59½ before January 1, 2007, enter the qualifying pension and annuity income included in your 2007 federal AGI, but not more than $20,000 . If you became 59½ during 2007, enter only the amount received after you became 59½, but not more than $20,000 . If you received pension and annuity income and are married, or received pension and annuity income as a beneficiary, see below.
$20,000 limit - You may not take a pension and annuity income exclusion that exceeds $20,000, regardless of the source(s) of the income.
Qualifying pension and annuity income includes:
- periodic payments for services you performed as an employee before you retired;
- periodic and lump-sum payments from an IRA, but not payments derived from contributions made after you retired;
- periodic distributions from government (IRC section 457) deferred compensation plans;
- periodic distributions from an annuity contract (IRC section 403(b)) purchased by an employer for an employee and the employer is a corporation, community chest, fund, foundation, or public school;
- periodic payments from an HR-10 (Keogh) plan, but not payments derived from contributions made after you retired;
- lump-sum payments from an HR-10 (Keogh) plan, but only if federal Form 4972 is not used. Do not include that part of your payment that was derived from contributions made after you retired;
- periodic distributions of benefits from a cafeteria plan (IRC section 125) or a qualified cash or deferred profit-sharing or stock bonus plan (IRC section 401(k)), but not distributions derived from contributions made after you retired.
Married taxpayers - If you both qualify, you and your spouse can each subtract up to $20,000 of your own pension and annuity income. However, you cannot claim any unused part of your spouse's exclusion.
Example: A husband and wife, both age 62, included total pension and annuity income of $45,000 in their federal AGI on their 2007 joint federal tax return. The husband received qualifying pension and annuity payments totaling $30,000 and the wife received qualifying payments totaling $15,000. They are filing a joint 2007 New York State resident personal income tax return. The husband may claim the maximum pension and annuity income exclusion of $20,000, and the wife may claim an exclusion of $15,000, for a total pension and annuity income exclusion of $35,000.
Beneficiaries - If you received a decedent's pension and annuity income, you may make this subtraction if the decedent would have been entitled to it, had the decedent continued to live, regardless of your age. If the decedent would have become 59½ during 2007, enter only the amount received after the decedent would have become 59½, but not more than $20,000.
If the decedent has more than one beneficiary, the decedent's $20,000 pension and annuity income exclusion must be allocated among the beneficiaries in the same ratio as the distribution, so that the total exclusion attributable to the decedent does not exceed $20,000.
Example: A taxpayer received pension and annuity income totaling $6,000 as a beneficiary of a decedent who was 59½ before January 1, 2007. The decedent's total pension and annuity income was $24,000, shared equally among four beneficiaries. Each beneficiary is entitled to one-quarter of the decedent's pension exclusion, or $5,000 ($20,000 divided by 4). The taxpayer also received a qualifying pension and annuity payment of $14,000 in 2007. The taxpayer is entitled to claim a pension and annuity income exclusion of $19,000 ($14,000 attributable to the taxpayer's own pension and annuity payment, plus $5,000 received as a beneficiary*).
* The total amount of the taxpayer's pension and annuity income exclusion that can be applied against the taxpayer's pension and annuity income received as a beneficiary is limited to the taxpayer's share of the decedent's pension and annuity income exclusion.
Disability exclusion - If you are also claiming the disability income exclusion, the total of your pension and annuity income exclusion and disability income exclusion cannot exceed $20,000.
Use this line to report the following subtractions that are not specifically listed on Form IT-150. Write in the applicable item number(s) (S-1 through S-15) and the amount of each subtraction in the white area. Enter the total amount of these other subtractions in the money column. If you have a subtraction that is not identified below, you should use Form IT-201.
S-1 Interest income on U.S. government bonds
Include the amount of interest income from U.S. government bonds or other U.S. government obligations that you reported on line 2. (This may be all or part of the line 2 amount, or it may be zero.)
Dividends you received from a regulated investment company (mutual fund) that invests in obligations of the U.S. government and meet the 50% asset requirement each quarter qualify for this subtraction. The portion of such dividends that may be subtracted is based upon the portion of taxable income received by the mutual fund that is derived from federal obligations.
Contact the mutual fund for further information on meeting the 50% asset requirement and figuring your allowable subtraction (if any).
S-2 New York's 529 college savings program
If during 2007 you made contributions to one or more tuition savings accounts established under New York's 529 college savings program, then include the amount of your contributions, up to $5,000 ($10,000 for married taxpayers filing a joint return).
S-3 Certain investment income from U.S. government agencies
Include any interest or dividend income on bonds or securities of any United States authority, commission or instrumentality that is exempt from state income taxes under federal laws (but that you included in your federal AGI).
S-4 Certain railroad retirement income and railroad unemployment insurance benefits
Include supplemental annuity or Tier 2 benefits received under the Railroad Retirement Act of 1974, or benefits received under the Railroad Unemployment Insurance Act that are exempt from state income taxes under federal law (but that you included in your federal AGI).
S-5 Certain investment income exempted by other New York State laws
Include any interest or dividend income from any obligations or securities authorized to be issued, and exempt from state taxation, under the laws of New York State. (For example, income received from bonds, mortgages, and income debenture certificates of limited dividend housing corporations organized under the Private Housing Finance Law.)
S-6 Disability income exclusion
Complete Form IT-221, Disability Income Exclusion , to figure your disability income exclusion if you were not yet 65 when your tax year ended and you retired on disability and were permanently and totally disabled when you retired.
S-7 Long-term residential care deduction
If you were a resident in a continuing-care retirement community that was issued a certificate of authority by the NYS Department of Health, then include the portion of the fees you paid during the year that were attributable to the cost of providing long-term care benefits to you under a continuing care contract. However, do not enter more than the premium limitation shown for your age in the Limitation table below. If you and your spouse both qualify, you may each take the subtraction. However, you cannot claim any unused part of your spouse's subtraction.
|If your age at the end of 2007 was:||You cannot claim more than:|
|40 or younger..........................................||$ 290|
|at least 41 but not older than 50.............||$ 550|
|at least 51 but not older than 60.............||$1,110|
|at least 61 but not older than 70.............||$2,950|
|71 or older...............................................||$3,680|
S-8 New York organized militia income
Include income that you received as a member of the New York organized militia for performing active service within NYS due to emergency state active duty orders issued pursuant to section six of the Military Law that was included in your federal AGI. Do not include any income you receive for regular duties in the organized militia (for example, pay received for the annual two-week training program) or any income received because you were called to active duty in the United States armed forces. Members of the NYS organized militia include the New York Army National Guard, the New York Air National Guard, the New York Naval Militia, and the New York Guard.
S-9 Professional service corporation shareholders
If , in a taxable year ending after 1969 and beginning before 1988, you included in your federal AGI deductions made by a plan acquired through membership in a professional service corporation (PSC), then include the portion of those deductions that can be allocated to pension, annuity, or other income you received from the plan, and were included in your 2007 federal AGI.
S-10 Loss from the sale or disposition of property that would have been realized if a federal estate tax return had been required
Note: this subtraction cannot be made for property acquired from decedents who died on or after February 1, 2000. If you acquired a decedent's property and, as valued by the executor, the estate was insufficient to require a federal estate tax return, and if a loss on the sale would have been realized if a federal estate tax return had been required, then include the amount of the loss.
S-11 Accelerated death benefits received that were includable in federal adjusted gross income
Include any amount you included in your federal AGI that was received by any person as (a) an accelerated payment or payments of part or all of the death benefit or special surrender value under a life insurance policy, or (b) a viatical settlement, as a result of a terminal illness (life expectancy of 12 months or less), or of a medical condition requiring extraordinary medical treatment, regardless of life expectancy.
S-12 Contributions for Executive Mansion, natural and historical resources, not deducted elsewhere
Include contributions you made, not deducted elsewhere, (a) to preserve, improve, and promote the Executive Mansion as a NYS historical resource, or (b) to the Natural Heritage Trust to preserve and improve the natural and historical resources of NYS. Do not include amounts you deducted in determining federal AGI.
S-13 Distributions made to a victim of Nazi persecution
Include amounts you included in your federal AGI from an eligible settlement fund or grantor trust as defined by section 13 of the Tax Law (because you were persecuted or targeted for persecution by the Nazi regime), or distributions received because of your status as a victim of Nazi persecution, or as a spouse or heir of the victim (successors or assignees, if payment is from an eligible settlement fund or grantor trust).
S-14 Items of income related to assets stolen from, hidden from, or otherwise lost to a victim of Nazi persecution
Include items of income you included in your federal AGI attributable to, derived from, or in any way related to assets stolen from, hidden from, or otherwise lost to a victim of Nazi persecution immediately prior to, during, and immediately after World War II, including but not limited to interest on the proceeds receivable as insurance under policies issued to a victim of Nazi persecution by European insurance companies immediately prior to and during World War II, or as a spouse or heir of such victim.
However, do not include income attributable to assets acquired with assets as described above or with the proceeds from the sale of any asset described above. Also, do not include any income if you were not the first recipient of the asset, or if you are not a victim of Nazi persecution, or a spouse or descendent of a victim.
S-15 Income earned before 1960 and previously reported to New York State
Include any income (including annuity income) or gain you included in your 2007 federal AGI that you (or the decedent or estate or trust from whom you acquired the income or gain) properly reported to NYS prior to 1960 (or during a fiscal year ending in 1960).
S-16 Living organ donors
If during 2007 you were a living donor who donated one or more of your organs to another person for human organ transplantation, then include unreimbursed expenses incurred for travel, lodging, and lost wages, up to a maximum of $10,000.You may claim this subtraction only once during your lifetime.
New York adjusted gross income
Caution: Do not leave line 21 blank.
Step 5 - Standard deduction, dependent exemptions, and taxable income
New York standard deduction
Enter your standard deduction from the table below.
New York State standard deduction table
|Filing status||Standard deduction - enter on line 22.|
|1. Single and you marked item D* Yes..................||
|2. Single and you marked item D* No....................||
|3. Married filing joint return .............................||
|4. Married filing separate return .............................||
|5. Head of household (with qualifying person) .........||
6. Qualifying widow(er) with dependent child ..........
Caution: Unlike on your federal return, you may not take personal exemptions for yourself and for your spouse on your New York State return.
Enter the number of your dependent exemptions from the Dependent exemption worksheet , line e, below.
If you do not have to file a federal return, enter on lines a, b, and d of the worksheet the number of exemptions that would be allowed for federal income tax pur poses.
Dependent exemption worksheet
|Check only one box:|
|____If you filed federal Form 1040EZ, enter 0 on line 23.|
|____If you filed federal Form 1040A or 1040, complete this worksheet.|
|a. Enter the number of exemptions claimed on federal Form 1040A or 1040, line 6d....................||a._________|
|b. See Line b instructions below...............................||b._________|
|c. Add lines a and b..................................................||c._________|
|d. Enter the total number of boxes checked on federal Form 1040A or 1040, line 6a and line 6b....||d._________|
|e. Subtract line d from line c. This is the number of your dependent exemptions to enter in the box(es) on Form IT-150, line 23 (see Example below)......||e._________|
|Line b instructions – If on your federal return you were entitled to claim a dependent as an exemption but chose not to, include that dependent on line b.|
|Example: If you were entitled to claim a dependent on your federal return but chose not to in order to allow your dependent to claim the federal education credit on his or her federal tax return, you may still claim him or her as a dependent on your New York return.
Lines 25 and 26
Subtract line 24 from line 21. The result is your taxable income. Enter this amount on line 25 and also on line 26. line 24 is more than line 21, leave lines 25 and 26 blank.
Step 6 - Tax computation
New York State tax
Is line 21 (your New York AGI) $100,000 or less?
If Yes, find your New York State tax by using the New York State Tax Table on pages 46 through 53, or if line 26 is $65,000 or more, use the New York State Tax Rate Schedule on page 55. Enter the tax on line 27.
If No, see Tax Computation - New York AGI of more than $100,000 , on pages 54.
New York State household credit
If you marked the Yes box at item (D) on the front of Form IT-150, you do not qualify for this credit and should go to line 29. If you marked No , use the appropriate table below or on page 26 to determine the amount to enter on line 28.
New York City resident tax (NYC residents only)
Is line 26 (your New York AGI) $65,000 or less?
If Yes, find your New York City resident tax by using the New York City Tax Table on pages 56 through 63. Enter the tax on line 30.
If No, find your New York City resident tax using the New York City Tax Rate Schedule on page 64. Enter the tax on line 30.
Caution: If one spouse was a resident of New York City for all of 2007 and the other was a nonresident for all of 2007, see Special instructions for Form IT-150, line 30, on page 39 for information on how to compute your New York City resident tax.
New York City household credit (NYC residents only)
If you marked the Yes box at item (D) on the front of Form IT-150, you do not qualify for this credit and should go to line 32. If you marked No, use the appropriate table below (4, 5 or 6) or on page 27 to determine the amount to enter on line 31.
Yonkers resident income tax surcharge
Were you a resident of Yonkers and did you make an entry of more than 0 on line 27?
If No, go to line 34.
If Yes, complete the Yonkers Worksheet below and enter the amount from line i on line 33.
Caution: If one spouse was a resident of Yonkers for all of 2007 and the other was a nonresident for all of 2007, see Special instructions for Form IT-150, line 33, on page 39 for information on how to compute your Yonkers resident income tax surcharge.
|a. Amount from line 29.........................................||a._________|
|b. Amount from Form IT-213, Claim for Empire State Child Credit, line 16, or line 17 if an amount is entered on line 17........||b._________|
|c. Amount from Form IT-214, Claim for Real Property Tax Credit, line 33.............................||c._________|
|d. Amount from Form IT-216, Claim for Child and Dependent Care Credit, line 14 (New York filing status . taxpayers, see instructions for Form IT-216)............................||d._________|
|e. Amount from Form IT-215, Claim for Earned Income Credit, line 16 (New York filing status . taxpayers transfer the amount from Form IT-215, line 17)...............................||e._________|
|f. Amount from Form IT-209, Claim for Noncustodial Parent New York State Earned Income Credit, line 32 or, if an amount is entered on line 42, the larger of line 32 or line 42..............................................................||f._________|
|g. If you elected to claim the college tuition credit, the amount from Form IT-272, Claim for College Tuition Credit or Itemized Deduction, line 5 or 7, whichever applies........||g._________|
|h. Add lines b through g.......................................||h._________|
|i. Subtract line h from line a................................||i._________|
|j. Yonkers resident tax rate (10%).......................||j._______.1|
|k. Multiply line i by line j. Enter this amount on Form IT-150, line 33....................................||k._________|
Yonkers nonresident earnings tax
If you were not a resident of Yonkers, did you earn wages there?
If No, go to line 35.
If Yes, complete Form Y-203, Yonkers Nonresident Earning Tax Return. Enter the amount of tax and attach Form Y-203 to your return.
Sales or use tax
See pages 66 through 72 for information on New York State and local sales or use tax, and how to calculate sales or use tax due.
If you don't owe any New York State or local sales or use tax, you must enter 0 on line 35. Do not leave line 35 blank. Then continue with the instructions for line 36.
Step 7 - Voluntary contributions
Line 36 (36a through 36g)
You may make voluntary contributions to the funds listed below. Enter the whole dollar amount (no cents, please) of your contribution(s) in the amount boxes (lines 36a through 36g). Enter the total amount of all your contributions combined on line 36. For more infor mation and a brief description of each fund, see below and pages 72 and 73.
Your contribution(s) will reduce your refund or increase your tax payment. You cannot change the amount(s) you give after you file your return.
Return a Gift to Wildlife. Make a contribution to New York's fish, wildlife, and marine resources and receive a free issue of Conservationist magazine from the Depar tment of Environmental Conservation.
Missing and Exploited Children Clearinghouse (MECC) Fund (Missing/Exploited Children Fund). Your contributions to this fund will be used to help police agencies and parents locate missing children and to prevent child exploitation. Also see Publication 40, Missing Children and Young Adults.
Breast Cancer Research and Education Fund (Breast Cancer Research Fund). A tax-deductible donation to this fund helps suppor t studies that are working to bring about the cures and the prevention of breast cancer. New Yor k State will match contributions to the Breast Cancer Research and Education Fund, dollar for dollar.
Prostate Cancer Research, Detection, and Education Fund (Prostate Cancer Research Fund). Contributions to this fund provide grants to the New York State Coalition to Cure Prostate Cancer that coordinates and manages prostate cancer research, detection, and education efforts here in our state. New York State will match contributions to the Prostate Cancer Research, Detection, and Education Fund, dollar for dollar.
Alzheimer's Disease Assistance Fund (Alzheimer's Fund). Contributions to this fund support the many services provided by the Alzheimer's Disease Assistance Program administered by the Depar tment of Health, including education and assistance to people with Alzheimer's, their families, and the caregivers.
United States Olympic Committee/Lake Placid Olympic Training Center (Olympic Fund). Contributions to this fund help suppor t the Olympic Training Center located in upstate New York. The center is used pr imarily by U.S. athletes who are training to compete in the future winter Olympics. Individual contr ibutions must be $2. If you are filing jointly, filing status ?, and your spouse also wants to contribute, enter $4.
World Trade Center Memorial Foundation Fund (WTC Memorial Fund). Contributions to the fund this year will be used exclusively for costs associated with the construction, installation, and operation of the World Trade Center Memorial and Memorial Museum in New York City.
Step 8 - Payments and credits
Line 38 Empire State child credit
Did you claim the federal child tax credit for 2007 or do you have a qualifying child (a qualifying child is a child who qualifies for the federal child tax credit and is at least four years of age)?
If No, you do not qualify for this credit. Go to line 39.
If Yes, review the instructions for Form IT-213 to see if you qualify for this credit. If you qualify, complete Form IT-213 and transfer the amount from Form IT-213 to Form IT-150, line 38. Attach Form IT-213 to your return.
For more information, see the instructions for Form IT-213.
Line 39 NYS / NYC child and dependent care credit
Did you qualify to claim the federal child and dependent care credit for 2007 (whether or not you actually claimed it)?
If No, you do not qualify for this credit. Go to line 40.
If Yes, complete Form IT-216, Claim for Child and Dependent Care Credit, to determine your New York State child and dependent care credit.
New for 2007 : If you are a New York City (NYC) resident with federal AGI (Form IT-150, line 11) of $30,000 or less, and you have a qualifying child under four years of age as of December 31, 2007, review the instructions for Form IT-216 to see if you qualify to claim the new NYC child and dependent care credit.
Transfer the amount from Form IT-216 to Form IT-150, line 38. Attach Form IT-216 to your return.
For more information, see the instructions for Form IT-216.
Line 40 New York State earned income credit (NYS EIC)
Did you claim the federal earned income credit for 2007 on your federal income tax return?
If No, you do not qualify for this credit. Go to line 41.
If Yes, complete Form IT-215, Claim for Earned Income Credit, and transfer the amount from Form IT-215 to Form IT-150, line 40. Attach Form IT-215 to your return. For more information, see the instructions for Form IT-215.
Caution: If you are a noncustodial parent and have paid child support through a support collection unit, you may be eligible for the noncustodial parent New York State earned income credit (noncustodial EIC). However, you cannot claim both the NYS EIC and the noncustodial EIC. Review the instructions for Form IT-209, Claim for Noncustodial Parent New York State Earned Income Credit, to see if you qualify for this credit. If you qualify, complete Form IT-209 to determine which credit offers the better tax savings. If you are claiming the NYS EIC, transfer the NYS EIC from Form IT-209 to Form IT-150, line 40, and attach Form IT-209 to your return (do not attach Form IT-215). If you are claiming the noncustodial EIC, see line 41 instructions below.
If the IRS is computing your federal earned income credit, write EIC in the white area to the left of the money column, and leave the money column blank on line 40. You must complete Form IT-150, lines 42 through 49, but do not complete lines 50 through 54.
Complete Form IT-215, lines 1 through 9, and attach it to your return. The Tax Department will compute your New York State earned income credit (and the resulting refund or amount due).
Line 41 Noncustodial parent New York State earned income credit (EIC)
Review the instructions for Form IT-209, Claim for Noncustodial Parent New York State Earned Income Credit, to see if you qualify for this credit. If you qualify, complete Form IT-209. If you are claiming the noncustodial EIC, transfer the noncustodial EIC from Form IT-209 to Form IT-150, line 41. If you are claiming the NYS EIC, transfer the NYS EIC from Form IT-209 to Form IT-150, line 40. Attach Form IT-209 to your return (do not attach Form IT-215).
For more information, see the instructions for Form IT-209.
Line 42 Real property tax credit
Review the instructions for Form IT-214, Claim for Real Property Tax Credit for Homeowners and Renters, to see if you qualify for this credit. If you qualify, complete Form IT-214 and transfer the amount from Form IT-214 to Form IT-150, line 42. Attach Form IT-214 to your return.
Line 43 College tuition credit
Did you or your spouse or your dependent(s) pay college tuition expenses during 2007?
If No, you do not qualify for this credit. Go to line 44. If Yes, complete Form IT-272, Claim for College Tuition Credit or Itemized Deduction, and transfer the amount from Form IT-272 to Form IT-150, line 43. Attach Form IT-272 to your return.
For more information, see the instructions for Form IT-272.
Line 44 New York City school tax credit (NYC residents only)
If you marked the Yes box at item D on the front of Form IT-150, you do not qualify for this credit. Go to line 45.
If you marked No, find your credit using the table below.
New York City school tax credit table
if your income* is:
your credit is:
|- Single, filing status 1, or
- Married filing separate return, filing status 3, or
- Head of household, filing status 4
|$ 250,000 or less||$ 145|
|over $ 250,000||$ 115|
|- Married filing joint return, filing status 2, or
- Qualifying widow(er) with dependent child, filing status 5
|$ 250,000 or less||$ 290|
|over $ 250,000||$ 230|
|* Income, for purposes of determining your New York City school tax credit, means your federal adjusted gross income (FAGI) from Form IT-150, line 11, minus distributions from an individual retirement account and an individual retirement annuity, from Form IT-150, line 5, if they were included in your FAGI.|
Line 45 New York City earned income credit (NYC residents only)
Did you claim the federal earned income credit for 2007 on your federal return?
If No, you do not qualify to claim this credit. Go to line 46.
If Yes, complete either Form IT-215, Claim for Earned Income Credit, or Form IT-209, Claim for Noncustodial Parent New York State Earned Income Credit. Transfer the amount from Form IT-215 or the amount from Form IT-209 to Form IT-150, line 45. Attach Form IT-215 or Form IT-209 to your return.
If the IRS is computing your federal earned income credit, write EIC in the white area to the left of the money column and leave the money column blank on line 45. You must complete Form IT-150, lines 46 through 49, but do not complete lines 50 through 54. The Tax Department will compute your New York City earned income credit and the resulting refund or amount due.
If you are due a refund, we will send you the refund along with an explanatory statement. If you owe tax, you will receive a bill that must be paid within 21 days, or by April 15, 2008, whichever is later.
Lines 46, 47, and 48
Total New York State, New York City, and Yonkers tax withheld
If you received any federal Form(s) W-2, Wage and Tax Statement, you must complete Form(s) IT-2, Summary of Federal Form W-2 Statements. In addition, if you received foreign income but did not receive a federal Form W-2, you must complete Form IT-2. If you had New York State, New York City, or Yonkers tax withheld from annuities, pensions, retirement pay or IRA payments, you must complete Form(s) IT-1099-R, Summary of Federal Form 1099-R Statements.
Enter on the appropriate line your total New York State, New York City, and Yonkers tax withheld from:
- Form(s) IT-2, and
- Form(s) IT-1099-R.
Caution: Attach Form(s) IT-2 and Form(s) IT-1099-R to the back of your Form IT-150. Do not attach federal Form W-2 or Form 1099-R to your return. Keep copies of your Form(s) IT-2, IT-1099-R, and W-2 for your records.
Check your withholding for 2008 - If, after completing your 2007 tax return, you want to change the amount of tax withheld from your paycheck, complete Form IT-2104, Employee's Withholding Allowance Certificate, and give it to your employer.
Line 49 Total estimated tax payments and amount paid with Form IT-370
Enter the total of:
- Your 2007 estimated income tax payments for New York State, New York City, and Yonkers (include your last installment even if paid in 2008). If you marked filing status . but made separate 2007 estimated income tax payments (Form IT-2105), enter your combined total estimated income tax paid;
- Any amount of overpayment from your 2006 return that you applied to your 2007 estimated income tax (if this amount was adjusted by the Tax Department, use the adjusted amount); and
- Any amount you paid with Form IT-370, Application for Automatic Six-Month Extension of Time to File for Individuals. If you marked filing status . but you and your spouse filed separate Forms IT-370, enter the total amount you and your spouse paid.
Do not include any amounts you paid for the New York City unincorporated business tax. File New York City's Form NYC-202, Unincorporated Business Tax Return, directly with the New York City Department of Finance.
income tax account by going to www.nystax.gov and clicking on Online Tax Center, or by writing us at: NYS Tax Department, Estimated Tax Unit, W A Harriman Campus, Albany NY 12227
Step 9 - Calculate your refund or the amount you owe
Line 51 Amount overpaid
If you have to pay an estimated income tax penalty (see line 55 instructions on page 32), subtract the penalty from the overpayment and enter the net overpayment on line 51.
Your net overpayment can be:
- refunded to you (enter amount on line 52);
- deposited directly into your bank account (enter amount on line 52 and see the instructions for line 56 on page 33);
- applied to your 2008 estimated income tax (enter on line 53); or
- divided between options 1 and 3, or 2 and 3.
If your estimated income tax penalty on line 55 is greater than your overpayment on line 51, enter the difference on line 54.
Line 52 Your refund
Enter the amount of overpayment that you want refunded to you. If you want a fast direct deposit, you must supply the information requested on line 56.
You must file a return to get a refund. The Tax Department will not refund an amount of one dollar or less unless you attach a signed request to your return.
Collection of debts from your refund - We will keep all or part of your overpayment (refund) if you owe a New York State tax liability or a New York City or Yonkers personal income tax liability, if you owe past-due support or a past-due legally enforceable debt to the IRS, to a New York State agency, or to another state, if you defaulted on a guaranteed student, state university, or city university loan, or if you owe a New York City tax warrant judgment debt. We will refund any amount that exceeds your debt.
A New York State agency includes any state department, board, bureau, division, commission, committee, public authority, public benefit corporation, council, office, or other entity performing a governmental or proprietary function for the state or a social services district.
If you have questions about whether you owe a past-due legally enforceable debt to the IRS, to another state, or to a New York State agency, contact the IRS, the other state, or the New York State agency.
For New York State tax liabilities or New York City or Yonkers personal income tax liabilities, call 1 800 835-3554 (from areas outside the U.S. and outside Canada, call (518) 485-6800) or write to: NYS Tax Department, Tax Compliance Division, W A Harriman Campus, Albany NY 12227.
For information relating to a New York City tax warrant judgment debt, call (212) 232-3550.
Disclaiming of spouse's debt - If you marked filing status . and you do not want to apply your part of the overpayment to your spouse's debt because you are not liable for it, complete Form IT-280, Nonobligated Spouse Allocation, and attach it to your original return. We need the information on Form IT-280 to process your refund as quickly as possible. You cannot file an amended return to disclaim your spouse's debt after you have filed your original return.
We will notify you if we keep your overpayment because of a past-due legally enforceable debt to the IRS or a tax debt to another state. You cannot use Form IT-280 to disclaim liability for a legally enforceable debt to the IRS or to disclaim a tax liability owed to another state. You must contact the IRS or the other state to resolve your responsibility for the asserted liability.
Line 53 Estimated tax
Enter the amount of overpayment from line 51 that you want applied to your New York State, New York City, and Yonkers estimated income tax for 2008. The total of lines 52 and 53 should equal the amount on line 51.
If you choose to apply all or part of your overpayment to your 2008 estimated income tax, you generally cannot change that decision after April 15, 2008.
Line 54 Amount you owe
Enter on line 54 the amount of tax you owe plus any estimated income tax penalty you owe (see line 55 instructions).
To avoid other penalties and interest, pay any tax you owe by April 15, 2008.
For additional information on penalties and interest, see Publication 80, General Income Tax Information for New York State Residents.
Line 55 Estimated tax penalty
Begin with these steps to determine if you may owe an estimated income tax penalty.
- Locate the amount of your 2006 New York AGI as shown on your 2006 return;
- Locate the amount of your 2006 New York income tax; then
- Calculate the amount of your 2007 prepayments (the amount of withholding and estimated tax payments you have already made for 2007).
In general, you are not subject to a penalty if your 2007 prepayments equal at least 100% of your 2006 income tax. However:
- If your 2006 New York AGI was more than $150,000 (or $75,000 if you are married filing separately) and you are not a farmer or a fisherman, your prepayments must equal at least 110% of your 2006 income tax based on a 12 month return;
- You may owe a penalty if line 54 is $300 or more and represents more than 10% of the income tax shown on your 2007 return; and
- You may owe a penalty if you underpaid your estimated income tax liability for any payment period.
For more information, see Form IT-2105.9, Underpayment of Estimated Income Tax by Individuals and Fiduciaries.
If you owe an estimated income tax penalty, enter the penalty amount on line 55. Also add the same amount to any tax due and enter the total on line 54. It is possible for you to owe an estimated income tax penalty and also be due a refund. In that case, subtract the estimated income tax penalty amount from the overpayment and enter the net result on line 51. Do not include any other penalty or interest amounts on line 51. Be sure to attach Form IT-2105.9 to your return.
By check or money order - If you owe more than one dollar, include full payment with your return. Make check or money order payable to New York State Income Tax and write your social security number and 2007 Income Tax on it. Do not send cash.
By credit card - You can use your American Express Cards7, Discover7/ Novus7, MasterCard7, or Visa7 to pay the amount you owe on your 2007 New York State income tax return. You can pay your income taxes due with your return by credit card through the Internet. The credit card service provider will charge you a convenience fee to cover the cost of this service, and you will be told the amount before you confirm the credit card payment. Please note that the convenience fee, terms, and conditions may vary between the credit card service providers. These are the same credit card service providers that have agreements with the IRS to process income tax payments.
You can make your payment by credit card regardless of how you file your income tax return. For returns filed before the due date, you can make credit card payments any time up to the due date. For returns filed on or after the due date, you should make your credit card payment at the same time you file your return. Credit cards cannot be used to pay any tax due on an amended return.
You can pay your income taxes due with your return using either of the two credit card service providers listed below.
Official Payments Corp. - Visit their Web site at: www.officialpayments.com
Link2Gov Corporation - Visit their Web site at: www.nytaxpayment.com
You can also connect to either of these Web sites by going to the Tax Department's Web site at www.nystax.gov and clicking on Online Tax Center.
Follow the simple instructions to enter personal identifying information, the credit card number and expiration date, and the amount of the payment (line 54 of Form IT-150). Have a copy of your completed New York State income tax return available. You will be told the amount of the convenience fee that the credit card service provider will charge you to cover the cost of this service. At this point you may elect to accept or cancel the credit card transaction.
If you accept the credit card transaction you will be given a confirmation number. Please keep this confirmation number as proof of payment.
For additional information go to www.nystax.gov and click on Online Tax Center.
By automatic bank withdrawal - You may authorize the Tax Department to make an electronic funds withdrawal from your bank account.
File now/Pay later! You must specify a future payment date up to and including April 15, 2008. If you file before April 15, money will not be withdrawn from your account before the date you specify. To avoid interest and penalties, you must authorize a withdrawal on or before the filing deadline. If you designate a weekend or a bank holiday, the payment will be withdrawn the next business day. See line 56 instructions on page 33.
Unable to pay?
To avoid interest and penalty charges, you must file and pay the amount due by April 15, 2008.
If you cannot pay in full, you should file your return on time, and pay as much of the tax due as possible by check, money order, or automatic bank withdrawal. Also consider alternative payment methods such as a commercial or private loan or a credit card transaction to pay any remaining balance.
You will be billed for any unpaid tax plus interest (see Amount you owe on page 32). Pay the bill immediately if you can; if you cannot, call the number provided on the bill to make other arrangements. If you fail to pay the amount due, New York State may file a tax warrant, seize your assets, and/or garnishee your wages to ensure payment.
Line 56 Account information
Are you requesting direct deposit of your refund to, or automatic withdrawal of your taxes from, your bank account?
If No, go to Step 10.
If Yes, you must mark the appropriate box at line 56 and supply the information requested for lines 56a, b, and c.
The following requirements apply to both direct deposit and electronic funds withdrawal:
Enter your bank's 9-digit routing number on line 56a. If the first two digits are not 01 through 12, or 21 through 32, the transaction will be rejected. On the sample check below, the routing number is 090090099.
If your check states that it is payable through a bank different from the one where you have your checking account, do not use the routing number on that check. Instead, contact your bank for the correct routing number to enter on line 56a.
Enter your account number on line 56b. The number can be up to 17 characters (both numbers and letters). Include hyphens (-) but omit spaces and special symbols. Enter the number from left to right and leave any unused boxes blank.
On line 56c, mark an X in the box for the type of account, checking or savings.
- If you mark Checking, enter the account number shown on your checks. (On the sample check below, the account number is 1357902468. Do not include the check number.)
- If you mark Savings, you can get your savings account number from a preprinted savings account deposit slip, your passbook or other bank records, or from your bank.
If you encounter any problem with direct deposit to, or electronic withdrawal from, your account, call toll free 1 800 225-5829. Please allow six to eight weeks for processing your return.
Refund - Direct deposit
Mark an X in the box for Refund on line 56.
The Tax Department will not notify you that your refund has been deposited. However, if the amount we deposit is different from the amount of refund you claimed, we will send you a written explanation of the adjustment within two weeks from the date your refund is deposited.
We will make every effort to comply with your request for direct deposit. However, we cannot be responsible when a bank refuses a direct deposit. Some banks, for example, do not allow a joint refund to be deposited into an individual account. You can contact your bank to confirm routing and account numbers and to make sure that it will accept your deposit. If we cannot make the direct deposit for any reason, we will send a check to the mailing address on your return.
Owe – Electronic funds withdrawal
Mark an X in the box for Owe on line 56 and enter the date you want the Tax Department to make an electronic funds withdrawal from your bank account.
The Tax Department will only use electronic funds withdrawal for the one tax payment you have authorized. Your confirmation will be your bank statement that includes a NYS Tax Payment line item. If we determine that the amount you owe is different from the amount claimed on your return, we will only withdraw less than or equal to the amount you have claimed. We will send you a bill for any additional amount owed, which may include penalty and interest.
If your bank returns your electronic funds withdrawal (due to insufficient funds, incorrect bank account information, closed accounts, etc.), the Tax Department will send a notification letter to the mailing address on your return. You will need to submit a check or money order to the address on the notification, or you may elect to pay by credit card.
We will make every effort to comply with your request for electronic funds withdrawal. However, we cannot be responsible when a bank refuses an electronic funds withdrawal. You can contact your bank to confirm routing and account numbers and to make sure that it will accept the withdrawal.
If for any reason we cannot comply with your request for electronic funds withdrawal, we will send a notice to the mailing address on your return.
Caution: If you complete the entries for electronic funds withdrawal, do not send a check or money order for the same amount due unless you receive a notice.
Step 10 - Sign and date your return
Part A Third-party designee
Do you want to authorize a friend, family member, or any other person (third-party designee) to discuss your 2007 tax return with the New York State Tax Department?
If No, mark an X in the No box and go to Part B.
If Yes, mark an X in the Yes box. Enter the designee's name, phone number, and any five numbers the designee chooses as his or her personal identification number (PIN). If you want to authorize the paid preparer who signed your return to discuss it with the Tax Department, just enter Preparer and the preparer's phone number in the spaces for the designee's name and phone number (you do not have to provide a PIN).
If you mark the Yes box, you (and your spouse, if filing a joint return) are authorizing the Tax Department to discuss with the designee any questions that arise during the processing of your return. You are also authorizing the designee to:
- give the Tax Department any information that is missing from your return;
- call the Tax Department for information about the processing of your return or the status of your refund or payment(s); and
- respond to certain Tax Department notices that you share with the designee about math errors, offsets, and return preparation. We will not send notices to the designee.
You are not authorizing the designee to receive your refund check, bind you to anything (including any additional tax liability), or otherwise represent you before the Tax Department. If you want the designee to perform those services for you, you must file Form POA-1, Power of Attorney. Copies of statutory tax notices or documents (such as a Notice of Deficiency) will only be sent to your designee if you file Form POA-1.
The authorization will end automatically on the due date (without regard to extensions) for filing your 2008 tax return. For most taxpayers, the due date will be April 15, 2009.
Part B Paid preparer's signature
Did you pay someone to prepare your return?
If No, go to Part C.
If Yes, the paid preparer must also sign it and fill in the other blanks in the paid preparer's area of your return. A person who prepares your return and does not charge you should not fill in the paid preparer's area.
Note to paid preparers – When signing a taxpayer's New York State income tax return, you must enter the same identification number that you used on the taxpayer's federal income tax return. If you did not prepare a federal income tax return for the taxpayer, you must use your PTIN if you have one; otherwise, use your social security number. For additional information, see Publication 58, Information for Income Tax Return Preparers.
Part C Your signature(s)
In the spaces provided at the bottom of the back page, sign and date your original return and enter your occupation. If you are married and filing a joint return, also enter your spouse's occupation. Both spouses must sign a joint return; we cannot process unsigned returns. Keep your signature(s) within the space(s) provided.
If the return is for someone who died and there is no surviving spouse to sign it, print or type the name and address of the person signing it below the signature. For additional information about deceased taxpayers, see page 39.
Daytime phone number - This entry will enable the Tax Department to correct minor errors or omissions by calling you rather than writing or sending back your return.
Step 11 - Finish your return
Take a moment to go over the checklist on page 36 to avoid common errors that may delay your refund. Then finish your return as shown below in Parts 1 through 7.
Part 1 - Once you have completed and reviewed the return, attach your peel-off name and address label, if you have one, making any necessary corrections to the information. See Step 1 if you have a question.
Part 2 - Staple payments, if any, to the front of your Form IT-150 where indicated.
Part 3 - Staple Form(s) IT-2 (and IT-1099-R if applicable) to the back of your Form IT-150.
Part 4 - Staple any other forms and any correspondence and computation sheets of paper behind your Form(s) IT-2 or IT-1099-R, face up.
Part 5 - Two-dimensional (2D) barcode cover sheet. If your software package or preparer prints a 2D barcode cover sheet as page one of your Form IT-150, place the cover sheet face up, on the top of the front page of Form IT-150, and staple the entire return at the top of the cover sheet. Staple payments, if any, to the front of the 2D barcode cover sheet where indicated. If you need to change and reprint your return, also be sure to reprint the 2D barcode cover sheet.
Please note: Do not write, print, or photocopy anything on the back of the 2D barcode cover sheet.
Part 6 - Make a copy of your return and any other attached forms or papers for your records. You may be asked by the Tax Department to provide copies of these records after you have filed your income tax return.
Part 7 - Use the envelope provided or address an envelope to send your original return to the following address:
STATE PROCESSING CENTER
PO BOX 61000
ALBANY NY 12261-0001
Mail your return by April 15, 2008.
If you choose, you may use a private delivery service, instead of the U.S. Postal Service, to file your return (see page 41).
Important reminder to file a complete return
You must complete all required schedules and forms that make up your return, and include all pages of those forms and schedules when you file. Attach only those forms and schedules that apply to your return, and be sure that you have made all required entries. Returns that are missing required pages or that have pages with missing entries are considered incomplete and cannot be processed, and may subject taxpayers to penalty and interest.
The information on pages 38 through 72 is for use in completing either the short Form IT-150 or the long Form IT-201.
Definitions used to determine resident, nonresident, or part-year resident
You may have to pay income tax as a New York State resident even if you are not considered a resident for other purposes. For income tax purposes, your resident status depends on where you were domiciled and where you maintained a permanent place of abode during the taxable year.
In general, your domicile is the place you intend to have as your permanent home. Your domicile is, in effect, where your permanent home is located. It is the place you intend to return to after being away (as on vacation abroad, business assignment, educational leave, or military assignment).
You can have only one domicile. Your New York domicile does not change until you can demonstrate that you have abandoned your New York domicile and established a new permanent domicile outside New York State.
A change of domicile must be clear and convincing. Easily controlled factors such as where you vote, where your driver's license and registration are issued, or where your will is located are not primary factors in establishing domicile. To determine whether you have, in fact, changed your domicile, you should compare (1) the size, value, and nature of use of your first residence to the size, value, and nature of use of your newly acquired residence; (2) your employment and/or business connections in both locations; (3) the amount of time spent in both locations; (4) the physical location of items that have significant sentimental value to you in both locations; and (5) your close family ties in both locations. A change of domicile is clear and convincing only when your primary ties are clearly greater in the new location. When weighing your primary ties, keep in mind that some may weigh more heavily than others, depending upon your overall lifestyle. If required by the Tax Department, it is the taxpayer's responsibility to produce documentation showing the necessary intention to effect a change of domicile.
If you move to a new location but intend to stay there only for a limited amount of time (no matter how long), your domicile does not change. For example, Mr. Green of ABC Electronics in Newburgh, New York, was temporarily assigned to the Atlanta, Georgia branch office for two years. After his stay in Atlanta, he returned to his job in New York. His domicile did not change during his stay in Georgia; it remained New York State.
If your domicile is in New York State and you go to a foreign country because of a business assignment by your employer, or for study, research or any other purpose, your domicile does not change unless you show that you definitely do not intend to return to New York.
Permanent place of abode
A permanent place of abode is a residence (a building or structure where a person can live) that you permanently maintain, whether you own it or not, and usually includes a residence your husband or wife owns or leases. A place of abode is not permanent if you maintain it only during a temporary or limited period of time for a particular purpose.
You are a New York State resident for income tax purposes if:
- Your domicile is not New York State but you maintain a permanent place of abode in New York State for more than 11 months of the year and spend 184 days or more (a part of a day is a day for this purpose) in New York State during the taxable year. However, if you are a member of the armed forces, and your domicile is not New York State, you are not a resident under this definition; or
- Your domicile is New York State. However, even if your domicile is New York, you are not a resident if you meet all three of the conditions in either Group A or Group B as follows:
- You did not maintain any permanent place of abode in New York State during the taxable year; and
- You maintained a permanent place of abode outside New York State during the entire taxable year; and
- You spent 30 days or less (a part of a day is a day for this purpose) in New York State during the taxable year.
- You were in a foreign country for at least 450 days during any period of 548 consecutive days; and
- You spent 90 days or less (a part of a day is a day for this purpose) in New York State during this 548-day period, and your spouse (unless legally separated) or minor children spent 90 days or less (a part of a day is a day for this purpose) in New York during this 548-day period in a permanent place of abode maintained by you; and
- During the nonresident portion of the taxable year in which the 548-day period begins, and during the nonresident portion of the taxable year in which the 548-day period ends, you were present in New York State for no more than the number of days which bears the same ratio to 90 as the number of days in such portion of the taxable year bears to 548. The following formula illustrates this condition:
Number of days in the nonresident portion / 548 × 90 = Maximum number of days allowed in New York State
You are a New York State nonresident if you were not a resident of New York State for any part of the year.
You are a New York State part-year resident if you meet the definition of resident or nonresident for only part of the year.
New York City and Yonkers
For the definition of a New York City or Yonkers resident, nonresident, and part-year resident, see the definitions of a New York State resident, nonresident, and part-year resident above, and substitute New York City or Yonkers in place of New York State.
For more information on nonresidents and part-year residents, see the instructions for Form IT-203.
As a full-year New York State resident for 2007, or if you are a full-year New York City resident or New York City part-year resident for 2007, you may have to use special accrual rules (see below) to compute your New York State and New York City personal income tax for 2007.
If you are subject to the special accrual rules, you must file Form IT-201. You cannot file Form IT-150.
Full-year New York State residents - You are subject to the special accrual rules only if you have accrued income for 2007 (see below), and
- you were a nonresident of New York State on December 31, 2006; or
- you will be a New York State nonresident on January 1, 2008.
You have accrued income for 2007 if:
- you have an item of non-New York source income* that was fixed and determinable in a tax year prior to 2007, but you are reporting that income for federal income tax purposes in tax year 2007; or
- you have an item of income that was fixed and determinable in tax year 2007, but you will be reporting that income for federal income tax purposes in a tax year after 2007.
Full-year and part-year New York City residents - You are subject to the special accrual rules only if you have accrued income for 2007 (see below), and
- you were a nonresident of New York City on December 31, 2006, but you were a full-year New York City resident for tax year 2007; or
- you were a full-year New York City resident for 2007 but you will be a New York City nonresident on January 1, 2008; or
- you were a New York City part-year resident for tax year 2007.
You have accrued income for 2007 if:
- you have an item of non-New York source income* that was fixed and determinable in a tax year prior to 2007, but you are reporting that income for federal income tax purposes in tax year 2007; or
- you have an item of income that was fixed and determinable in tax year 2007, but you will be reporting that income for federal income tax purposes in a tax year after 2007; or
- you have an item of income that was fixed and determinable in your 2007 New York City resident period, but that income is not reportable for federal income tax purposes in your 2007 New York City resident period; or
- you have an item of non-New York source income* that was fixed and determinable in your 2007 New York City nonresident period, but that income is not reportable for federal income tax purposes in your 2007 New York City nonresident period.
Special instructions for Form IT-150, line 30
Line 30 New York City resident tax
If one spouse was a resident of New York City for all of 2007 and the other a nonresident for all of 2007, compute on a separate sheet of paper the NYC resident tax on the New York State taxable income of the city resident as if you had filed separate federal returns reduced by the NYC household credit (if applicable). Transfer the amount from your separate sheet to line 30. Be sure to write the name and social security number of the city resident and Taxable income of New York City resident on that paper and attach it to your return.
Special instructions for Form IT-150, line 33
Line 33 Yonkers resident income tax surcharge
If one spouse was a resident of Yonkers for all of 2007 and the other a nonresident for all of 2007, compute on a separate sheet of paper the Yonkers resident income tax surcharge on the New York State tax of the Yonkers resident as if you had filed separate federal returns. Transfer the amount from your separate sheet to line 33. Be sure to write the name and social security number of the Yonkers resident and Yonkers resident income tax surcharge on that paper and attach it to your return.
Estates and trusts
Estates and trusts are subject to the New York State personal income tax. The fiduciary for an estate or trust must file Form IT-205, Fiduciary Income Tax Return. Each beneficiary of an estate or trust must include his or her share of the estate or trust income on Form IT-201. For more information on responsibilities of beneficiaries, see Beneficiaries (estates and trusts) on page 81.
If a taxpayer died after 2006 and before filing a return for 2007, the taxpayer's spouse or personal representative may have to file and sign a return for that taxpayer. A personal representative can be an executor, administrator or anyone who is in charge of the deceased taxpayer's property. If a taxpayer did not have to file a federal return but had New York State tax withheld, a New York return must be filed to get a refund. If a joint federal income tax return was filed for the deceased taxpayer and the surviving spouse, a joint New York State return can be filed on Form IT-150 or Form IT-201, depending on which federal form was filed. Write Filing as surviving spouse in the area where you sign the return. If someone else is the personal representative for the deceased spouse, he or she must also sign the return. The filing due date is the same as if the deceased taxpayer had lived. The person who files the return for the deceased taxpayer should write the deceased taxpayer's date of death in the area indicated near the top of the return.
Partnerships/limited liability partnerships or companies
Partnerships, limited liability partnerships (LLPs) and limited liability companies (LLCs), limited liability investment companies (LLICs) and limited liability trust companies (LLTCs) that are treated as partnerships for federal purposes are not subject to the New York State personal income tax, but individual members of the partnerships are.
If your partnership has a partner who is a New York State resident, or if the partnership has any income from New York State sources, it must file Form IT-204, Partnership Return. If your partnership carried on a business in New York City, it may also have to file Form NYC-204, City of New York Unincorporated Business Tax Partnership Return. Since New York State does not administer the New York City unincorporated business tax, do not file your NYC-204 with your state return.
Innocent spouse relief
There are three forms of innocent spouse relief: innocent spouse, separation of liability, and equitable relief. You may qualify for relief from full or partial tax liability on a joint return as an innocent spouse if: (1) there is an understatement of tax on a joint return because of an omission or error involving income, deduction, credit, or basis; (2) you can show that when you signed the return you did not know and had no reason to know of the understatement; and (3) taking into account all the facts and circumstances, it would be unfair to hold you liable for the understated tax. You may also request a separation of liability for any understated tax on a joint return if you and your spouse or former spouse are no longer married, or are legally separated, or have lived apart at all times during the 12-month period prior to the date of filing for relief. If you do not qualify as an innocent spouse or for separation of liability, you may qualify for equitable relief if you can show that, taking into account all the facts and circumstances, you should not be held liable for any understatement or underpayment of tax. For more information, see Form IT-285, Request for Innocent Spouse Relief (and Separation of Liability and Equitable Relief). You may use Form IT-285 only for innocent spouse relief under the three circumstances stated above. Do not file Form IT-285 with your return.
If you want to disclaim your spouse's defaulted guaranteed student, state university, or city university loan or past-due support or past-due legally enforceable debt owed to a New York State agency or a New York City tax warrant judgment debt because you do not want to apply your part of a joint refund or refundable credit to a debt owed solely by your spouse, use Form IT-280, Nonobligated Spouse Allocation. You must complete Form IT-280 and attach it to the back of your original return when filed. (Also see Disclaiming of spouse's debt on page 31 (Form IT-150) or page 103 (Form IT-201)).
Members of the armed forces
If you are a member of the military and a New York State resident, the amount of your military pay that is subject to federal income tax is also subject to New York income tax.
For more information, see Publication 361, New York State Income Tax Information for Military Personnel and Veterans.
Keep a copy of your tax records
Please remember to keep a copy of your completed income tax return. Also keep copies of any books, records, schedules, statements, or other related documents.
The Tax Department may ask you to provide copies of these records after you have filed your income tax returns.
You should retain copies of your return for at least seven years after you file your return.
Amending your return
File new Form IT-150-X to amend a previously filed New York State income tax return, Form IT-150, unless you are amending your return to report income or deductions that cannot be reported using Form IT-150. In this case you must file Form IT-201-X. File Form IT-201-X to amend a previously filed New York State income tax return, Form IT-201.
Use Form IT-203-X if you mistakenly filed Form IT-150 or Form IT-201, but you were a nonresident or part-year resident. See Other forms you may have to file on page 10.
Paid preparer information
For information relating to the signing of returns by a paid preparer (anyone you pay to prepare your return), e-file mandate for paid preparers, and other requirements relating to paid preparers, see Publication 58, Information for Income Tax Return Preparers.
How to get New York City forms
If you need to get tax forms and instructions from the NYC Department of Finance:
Online - Visit www.nyc.gov/finance
By fax - Call Finance's Tax Fax Service at (212) 504-4038 from the phone connected to your fax machine or modem (24 hours a day, 7 days a week).
By mail - Call Finance's Forms Ordering Service at (212) 504-4035 anytime to receive forms and instructions by mail.
For information on NYC business taxes, call Finance Customer Assistance at (212) 504-4036. For information on NYC property taxes call (212) 504-4080. Customer assistance representatives are available weekdays from 8:00 A.M. to 5:00 P.M. Automated services are also available 24 hours a day, seven days a week.
Statute of limitations
Generally, you must file a claim for a credit or refund of an overpayment of income tax within the later of three years from the time you filed the return or two years from the time you paid the tax. If you did not file a return, you must file the claim for a credit or refund within two years from the time you paid the tax.
The Commissioner of Taxation and Finance may collect and maintain personal information pursuant to the New York State Tax Law, including but not limited to, sections 5-a, 171, 171-a, 287, 308, 429, 475, 505, 697, 1096, 1142, and 1415 of that Law; and may require disclosure of social security numbers pursuant to 42 USC 405(c)(2)(C)(i).
This information will be used to determine and administer tax liabilities and, when authorized by law, for certain tax offset and exchange of tax information programs as well as for any other lawful purpose.
Information concerning quarterly wages paid to employees is provided to certain state agencies for purposes of fraud prevention, support enforcement, evaluation of the effectiveness of certain employment and training programs and other purposes authorized by law.
Failure to provide the required information may subject you to civil or criminal penalties, or both, under the Tax Law.
This information is maintained by the Director of Records Management and Data Entry, NYS Tax Department, W A Harriman Campus, Albany NY 12227; telephone 1 800 225-5829. From areas outside the United States and outside Canada, call (518) 485-6800.
Private delivery services
If you choose, you may use a private delivery service, instead of the U.S. Postal Service, to mail in your return and tax payment. However, if, at a later date, you need to establish the date you filed your return or paid your tax, you cannot use the date recorded by a private delivery service unless you used a delivery service that has been designated by the U.S. Secretary of the Treasury or the Commissioner of Taxation and Finance. (Currently designated delivery services are listed in Publication 55, Designated Private Delivery Services. See Need help? on the back cover for information on obtaining forms and publications.) If you have used a designated private delivery service and need to establish the date you filed your return, contact that private delivery service for instructions on how to obtain written proof of the date your return was given to the delivery service for delivery. If you use any private delivery service, whether it is a designated service or not, send the forms covered by these instructions to: State Processing Center, 101 Enterprise Drive, Kingston NY 12401.
Information on paying sales and use taxes on your income tax return
Line 35 of Form IT-150, or line 59 of Form IT-201
Note: Use these instructions on pages 66 through 72 only to complete either line 35 of the short Form IT-150, or line 59 of the long Form IT-201.
When do you owe New York State and local sales or use tax?
When you make a purchase of taxable property or services from a seller (vendor) located in New York State and take delivery in New York State, the vendor should collect state and local sales or use tax due and forward it to the Tax Department. However, you are responsible for paying the tax directly to the Tax Department under the following three circumstances:
Deliveries into New York State - You owe state and local sales or use tax if you:
- purchase property or a service that is delivered to you in New York State without payment of New York State and local tax to the seller, such as through the Internet, by catalog, from television shopping channels, or on an Indian reservation.
Purchases outside New York State with subsequent use in New York State - You may also owe state and local sales or use tax if you are a resident of New York State at the time you purchase any of the following outside New York State:
- property you bring into New York State for use in New York State;
- a service performed on property outside New York State, and you bring that property into New York State for use here; or
- a service (such as an information service) you bring into New York State for use here.
(You may be eligible for a credit for sales or use tax paid to another state. See Instructions for Worksheets 1, 2, and 3, Column D, on page 70.)
However, you are not required to pay state or local sales or use tax on any property or service that you bring into New York State which you purchased outside of the state before you became a resident of New York State.
Additional local tax - You may owe an additional local tax if you are a resident of a locality (county or city) at the time of purchase and you:
- bring property into that locality which you purchased in another locality in New York State that has a lower tax rate;
- bring property into that locality on which you had a taxable service performed in another locality in New York State that has a lower tax rate; or
- bring a service (such as an information service) into that locality which you purchased in another locality in New York State that has a lower tax rate.
However, you are not required to pay any additional local tax on any property or service that you bring into a locality in New York State that you purchased outside that locality before you became a resident of that locality.
Note: For purposes of these sales and use tax instructions, the word tax will be used to refer to either the sales tax or the use tax, or both.
Who is a New York State resident for sales and use tax purposes?
For sales and use tax purposes, the definition of resident includes persons who may not be considered residents for personal income tax purposes. For example, persons maintaining a permanent place of abode in New York who do not spend more than 183 days a year in the state, college students, and military personnel may all be residents for sales and use tax purposes even if they are not residents for income tax purposes. For sales and use tax purposes, an individual is a resident of the state and of any locality in which he or she maintains a permanent place of abode. A permanent place of abode is a dwelling place maintained by a person, or by another for that person to use, whether or not owned by such person, on other than a temporary or transient basis. The dwelling may be a home, apartment or flat; a room including a room at a hotel, motel, boarding house, or club; a room at a residence hall operated by an educational, charitable, or other institution; housing provided by the armed forces of the United States, whether the housing is located on or off a military base or reservation; or a trailer, mobile home, houseboat, or any other premises. This includes second homes. Therefore, you can be a resident of more than one locality and state for sales and use tax purposes.
An individual doing business in New York State is a resident for sales and use tax purposes of the state and of any county or city in which the individual is doing business, with respect to purchases of taxable property or services used in the business. Therefore, if an individual is engaged in business in New York State but has no permanent place of abode in New York State, the individual will owe use tax only on taxable purchases made with respect to the business operated in New York.
What tangible personal property and services are subject to sales and use taxes?
Most tangible personal property is subject to tax. Some examples are: cigarettes and other tobacco products; alcohol; candy; clothing; books; electronic equipment; furniture; collectibles (stamps, coins, etc., bought for collections); works of art; off-the-shelf computer software; and, generally, a garage sale item costing more than $600.
Some examples of tax exempt items are: prescription and nonprescription drugs and medicines used for humans; certain medical equipment and supplies used for humans; newspapers; periodicals; most food items; U.S. and New York State flags; Indian arts and crafts when purchased on an Indian reservation; used mobile homes; and college textbooks.
Only certain services are subject to tax. Taxable services include maintaining, servicing, and repairing tangible personal property (for example, auto and appliance repair) and real property such as land and buildings (for example, services such as house repairs, lawn maintenance, and interior decorating). Some examples of exempt services are dry cleaning, veterinary (except for grooming and boarding), legal, accounting, and medical services.
For more information on taxable and exempt goods and services, see Publication 750, A Guide to Sales Tax in New York State.
Reporting and paying sales and use taxes
You must report any unpaid sales or use tax owed for 2007 on your 2007 personal income tax return.
Note: Do not use Form IT-150 or Form IT-201 to report and pay sales and use taxes with respect to a business if you or the business is registered, or are required to be registered, for sales tax purposes. Report and pay sales and use taxes with respect to business purchases on the applicable sales and use tax return.
If you are requesting an extension of time to file your personal income tax return and you owe sales or use tax, you must pay any sales or use tax you owe at the time you request the extension. See Form IT-370 for more information.
If you receive an automatic extension of time to pay your New York State personal income tax (for example, you are in a foreign country), your sales or use tax is due when your New York State personal income tax is due.
You may report and pay your sales or use tax liability on your personal income tax return for:
- your personal purchases;
- purchases related to your royalty activities or rental real estate activities reported in Part I of federal Schedule E; and
- purchases related to your Schedule C, C-EZ, or F business (not otherwise eligible for exemption) unless the business is, or is required to be, registered for sales tax purposes.
If you are married and file a joint return, you may include your spouse's sales or use tax liability for:
- your spouse's purchases;
- purchases related to your spouse's royalty activities or rental real estate activities reported in Part I of federal Schedule E; and
- purchases related to your spouse's Schedule C, C-EZ, or F business (not otherwise eligible for exemption) unless the business is, or is required to be, registered for sales tax purposes.
If you are not filing an income tax return but owe sales or use tax for 2007, you must pay any unpaid sales or use tax by filing Form ST-140, Individual Purchaser's Annual Report of Sales and Use Tax, by April 15, 2008. However, if you or the business is registered or required to be registered for sales tax purposes, all sales and use taxes owed with respect to business purchases must be reported and paid with the periodic sales and use tax return.
At the time of registration, the New York State Department of Motor Vehicles (DMV) collects any unpaid sales or use tax on a motor vehicle, trailer, all-terrain vehicle, vessel, or snowmobile that must be registered or titled by DMV. Therefore, do not report or pay the sales or use tax on these items on your personal income tax return.
What happens if I don't pay the sales or use tax due?
Failure to pay sales or use tax may result in the imposition of penalty and interest. The Tax Department conducts both routine and special audits to promote compliance. In addition, the U.S. Customs Service provides the department with information from customs declarations filed by New York State residents returning from overseas travel. The Tax Department also obtains information on sales to New York State residents under information exchange agreements with other states.
Computing sales or use tax
To compute the amount of tax you owe, see How to calculate and report your sales and use tax liability.
If you do not owe any sales or use tax, you must enter 0 on the sales or use tax line of your personal income tax return.
For more information, see Publication 774, Purchaser's Obligations to Pay Sales and Use Taxes Directly to the Tax Department, Questions and Answers.
Instructions for Worksheets 1, 2, and 3
Column A - Purchase price
The tax is generally computed on the price you paid for an item or service, including any shipping or handling charges made by the seller. However, if you were a resident of New York State at the time of purchase and you purchased property outside New York State which you used outside the state for more than six months before you brought it into the state, compute the tax on the lower of the cost or fair market value of the property at the time you brought it into New York State. This may result in a lower amount of tax. The same six month rule applies for purposes of computing local tax.
Column B - Rate
The tax rate to use is determined as follows:
- If the property or service is delivered to you in New York State, the tax is computed at the combined state and local rate in effect in the locality where the delivery occurs regardless of where you reside. The rate that applies is the rate in effect at the time of delivery.
- If you are a New York State resident and you purchase property or services outside New York State which you bring into New York State to your jurisdiction of residence, tax is computed at the combined state and local rate in effect where you reside. The rate that applies is the rate in effect at the time you brought the property or service into that jurisdiction.
In addition, if you use the property or service in another locality in New York State, you owe tax to the second locality if you were also a resident of that locality at the time of the purchase, and its rate is higher than the rate in effect where the property was originally delivered to you in New York State or brought by you into New York State.
See Chart 1 or Chart 2 for a listing of rates through November 30, 2007. For rate changes effective December 1, 2007, visit our Web site at www.nystax.gov/pit/use_tax.htm or call the Tax Department. See Need help? on the back cover.
Column D - Tax paid to another taxing jurisdiction, if any
To determine whether the tax you paid to another state or local jurisdiction in another state qualifies for credit against New York State and local tax, see Publication 39, A Guide to New York State Reciprocal Credits for Sales Taxes Paid to Other States. If you bought the item or service in a locality in New York State other than where you reside, the tax you paid at the time of purchase may be claimed as a credit against the tax due in the locality where you reside. Federal excise taxes and customs duties, and taxes and fees you paid in foreign countries are not allowed as a credit against any New York State or local sales or use tax that you owe.
New York Tax Help Links
- » New York Form IT-2
- » New York Form IT-112-R
- » New York Form IT-201
- » New York Form IT-201-ATT
- » New York Form IT-201-V
- » New York Form IT-209
- » New York Form IT-212
- » New York Form IT-213
- » New York Form IT-213-ATT
- » New York Form IT-214
- » New York Form IT-215
- » New York Form IT-216
- » New York Form IT-219
- » New York Form IT-220
- » New York Form IT-221
- » New York Form IT-249
- » New York Form IT-256
- » New York Form IT-272
- » New York Form IT-398
- » New York Form IT-1099-R
- » New York Form IT-1099-UI
- » New York Form IT-2105.9
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