New York Tax Form IT-201 - Resident Income Tax Return Instructions

General changes for 2009

 Paid preparers. Recent Tax Law changes require certain paid tax return preparers and facilitators of refund anticipation loans (RALs) and refund anticipation checks (RACs) to register electronically with the Tax Department. Unless they are facilitators of RALs or RACs, this new registration requirement does not apply to attorneys, public accountants, and certified public accountants registered with or licensed by New York State, or to their employees who prepare returns under their direct supervision. Access our Web site at www.nystax.gov for additional information regarding the Tax Preparer Registration Program.

 Personal income tax rate increase. For tax years beginning in 2009, 2010, and 2011, the New York State personal income tax rates have been increased on certain taxable incomes. The increases were put into effect by establishing two new tax brackets. The highest tax rate and bracket is now 8.97% for all taxpayers who have incomes in excess of $500,000. The second highest tax rate is 7.85% and its taxable income bracket varies by filing status. New tax computation worksheets reflect these changes. For additional information, see pages 50 and 51.

 New York itemized deduction. The New York itemized deduction limitation has been revised to further limit a taxpayer’s New York itemized deduction. If a taxpayer’s New York adjusted gross income is more than $1,000,000, the New York itemized deduction is now limited to 50% of the federal itemized deduction for charitable contributions (based on the new limitation, all other federal itemized deductions will be reduced to zero).

 Fee for payments returned by banks. A new law allows the Tax Department to charge a $50 fee when a check, money order, or electronic payment is returned by a bank for nonpayment. However, if an electronic payment is returned as a result of an error by the bank or the department, the department won’t charge the fee. If your payment is returned, we will send a separate bill for $50 for each return or other tax document associated with the returned payment.

 New mailing address for returns with payments enclosed. There is a new mailing address for income tax returns that have payments enclosed. See the back cover of these instructions for the mailing addresses.

 New tax for self-employed individuals engaging in business within the MCTD. A new Metropolitan Commuter Transportation Mobility Tax (MCTMT) applies to certain employers and self‑employed individuals engaging in business within the Metropolitan Commuter Transportation District (MCTD). The tax applies to employers that are required to withhold New York State income tax from wages and that have a payroll expense exceeding $2,500 in any calendar quarter. It also applies to individuals with net earnings from self-employment allocated to the MCTD that exceed $10,000 for the tax year. For more information about this new tax, visit our Web site at www.nystax.gov .

When computing New York adjusted gross income, the amount of any federal deduction claimed for MCTMT paid must be added back to federal adjusted gross income. For additional information, see page 67.

Changes to existing credits

New York City school tax credit. The New York City school tax credit has been reduced for tax years 2009 and after. For taxpayers with incomes of $250,000 or less whose filing status is married filing jointly or qualifying widow(er) with dependent child, the credit is $125. For all others with incomes of $250,000 or less, the credit is $62.50.

 Fuel cell electric generating equipment credit. The fuel cell electric generating equipment credit has been repealed for tax years beginning on or after January 1, 2009. However, any unused credit from a prior year for which the credit was allowed can be carried over for up to the following five years.

 Empire State film production credit. The Empire State film production credit has been revised. If the amount of the credit is at least $1,000,000 but less than $5,000,000, the credit must be claimed over a two-year period. If the amount of the credit is $5,000,000 or more, the credit must be claimed over a three-year period.

 Empire Zones. There have been various amendments made to the Empire Zones Program. For additional information, see TSB-M-09-(4)I, Legislative Changes to the Empire Zones Program.

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 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

Additional information

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.

Domicile

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

In general, 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. For additional information, see Publication 80, General Income Tax Information for New York State Residents.

Resident

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:

Group A

  1. You did not maintain any permanent place of abode in New York State during the taxable year; and
  2. You maintained a permanent place of abode outside New York State during the entire taxable year; and
  3. 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.

Group B

  1. You were in a foreign country for at least 450 days during any period of 548 consecutive days; and
  2. You, 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 State during this 548-day period; and
  3. 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 x 90 = Maximum number of days allowed in New York State

Nonresident

You are a New York State nonresident if you were not a resident of New York State for any part of the year.

Part-year resident

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.

Special accruals

As a full-year New York State resident for 2009, or if you are a full-year New York City resident or New York City part-year resident for 2009, you may have to use special accrual rules (see below) to compute your New York State and New York City personal income tax for 2009.

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 2009 (see below), and

  • you were a nonresident of New York State on December 31, 2008; or
  • you will be a New York State nonresident on January 1, 2010. You have accrued income for 2009 if:
  • you have an item of non-New York source income* that was fixed and determinable in a tax year prior to 2009, but you are reporting that income for federal income tax purposes in tax year 2009; or
  • you have an item of income that was fixed and determinable in tax year 2009, but you will be reporting that income for federal income tax purposes in a tax year after 2009.

Full-year and part-year New York City residents

You are subject to the special accrual rules only if you have accrued income for 2009 (see below), and

  • you were a nonresident of New York City on December 31, 2008, but you were a full-year New York City resident for tax year 2009; or
  • you were a full-year New York City resident for 2009 but you will be a New York City nonresident on January 1, 2010; or
  • you were a New York City part-year resident for tax year 2009. You have accrued income for 2009 if:
  • you have an item of non-New York source income* that was fixed and determinable in a tax year prior to 2009, but you are reporting that income for federal income tax purposes in tax year 2009; or
  • you have an item of income that was fixed and determinable in tax year 2009, but you will be reporting that income for federal income tax purposes in a tax year after 2009; or
  • you have an item of income that was fixed and determinable in your 2009 New York City resident period, but that income is not reportable for federal income tax purposes in your 2009 New York City resident period; or
  • you have an item of non-New York source income* that was fixed and determinable in your 2009 New York City nonresident period, but that income is not reportable for federal income tax purposes in your 2009 New York City nonresident period.

Instructions for Form IT-201

Step 1 - Complete the taxpayer information section

Name and address

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.

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, 2009, enter your permanent home address as of December 31, 2009, 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.

Social security numbers

Enter your social security number(s) in the same order as your names.

New York State county of residence

Enter the county in New York State where you lived on December 31, 2009. If you live in New York City, use one of the following county names:

If you live in  use county
Bronx Bronx
Brooklyn Kings
Manhattan New York
Queens Queens
Staten Island Richmond

School district name and code

Enter the correct code number and the name of your school district. This is the district where you were a resident on December 31, 2009. School districts and code numbers are on pages 37 through 40. 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.

Decedent information

If the taxpayer whose name is listed first on the return died after December 31, 2008, 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, 2008, enter the date of death in the boxes labeled Spouse’s date of death. See Deceased taxpayers on page 33.

Step 2 - Select your filing status and complete items B through G

Item (A)

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:

  1. 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.
  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.
  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

Item (B)

If you itemized your deductions on your 2009 federal income tax return, mark an X in the Yes box. If you claimed the standard deduction on your federal return, mark an X in the No box.

Item (C)

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.

Item (E)

If you, or your spouse if married filing jointly, maintained or had use of an apartment or living quarters in New York City during any part of 2009, you must mark an X in the Yes box.

Living quarters include a house, apartment, co-op, or any other dwelling that you or your spouse maintain or pay for, or that is maintained for your primary use by another person, family member, or employer. For example, if a company were to lease an apartment for the use of the company’s president or chief executive officer, and the dwelling was principally available to that individual, the individual would be considered as maintaining living quarters in New York even though others might use the apartment on an occasional basis.

Note: You may be considered a New York City resident if you spend 184 days or more (a part of a day is a day for this purpose) in New York City. See the definitions of Resident, Nonresident, and Part-year resident on page 32. If you meet the definition, complete the New York City resident taxes and credits lines (47 through 53, and 64, 69, and 70) on Form IT-201. See the instructions on pages 79, 80, and 82 through 84.

Item (F)

NYC residents and NYC part-year residents only: Enter in the applicable box the number of months you and your spouse (if filing a joint return) lived in New York City during 2009. We need this information to verify your New York City school tax credit.

All other taxpayers should leave the boxes at Item (F) blank.

Item (G)

If you qualify for one or more of the five special conditions below, enter the specified 2-digit code(s).

Code C7 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 E4 Nonresident aliens- Enter this code if you are a U.S. nonresident alien for federal income tax purposes and you qualify to file your federal income tax return on or before June 15, 2010. The filing deadline for your New York return is also June 15, 2010.

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. Also attach a copy of the the letter you sent the IRS to request the additional time to file.

Step 3 - Enter your federal income and adjustments

Lines 1 through 18 - 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 reported on your federal income tax return, including your income and federal adjustments to income. If you did not file a federal return, you must report the same income and adjustments that you would have reported for federal income tax purposes if you had filed a federal return.

Use the chart below to complete lines 1 through 18.

Be sure to enter your total other income on line 15 and your total federal adjustments to income on line 17. Write each type of income and each adjustment and its amount in the Identify areas on lines 15 and 17. If you need more room, attach a list showing each type of income and each adjustment and its amount.

Do not leave line 18 blank.

Step 4 - Calculate your New York additions and subtractions

Overview

The computation of your New York State income tax is based on your New York AGI, which is your federal AGI modified by certain New York adjustments (New York additions and New York subtractions).

New York State taxes certain items of income not taxed by the federal government. You must add these New York additions to your federal AGI. Enter any of the listed additions on lines 20 through 23.

Similarly, New York State does not tax certain items of income taxed by the federal government. You must subtract these New York subtractions from federal AGI on lines 25 through 31.

Partners

If you have income from a partnership, include any New York adjustments that apply to that income.

The New York additions relating to your partnership income will be shown on your Form IT-204-IP, New York Partner’s Schedule K-1, lines 20a through 20f. If you have an addition to your partnership income relating to interest income on state and local bond obligations (EA-3), include that amount on your Form IT-201, line 20. If you have an addition to your partnership income relating to New York’s 529 college saving program distributions (EA-18), include that amount on your Form IT-201, line 22 (see the instructions for line 22). For all other additions relating to your partnership income, write in the applicable item number(s) (EA-1 through EA-20) and the amount of each addition in the Identify area of line 23. Enter the total amount of these additions, and any other additions reported on line 23, in the money column.

The New York subtractions relating to your partnership income will be shown on your Form IT-204-IP, lines 22a through 22f. If you have a subtraction from your partnership income relating to interest income on U.S. government bonds (ES-3), include that amount on your Form IT-201, line 28. If you have a subtraction from your partnership income relating to New York’s 529 college saving program deduction/earnings (ES-24 and ES-25), include that amount on your Form IT-201, line 30 (see the instructions for line 30). For all other subtractions relating to your partnership income, write in the applicable item number(s) (ES-1 through ES-25) and the amount of each subtraction in the Identify area of line 31. Enter the total amount of these subtractions, and any other subtractions reported on line 31, in the money column.

Beneficiaries (estates and trusts)

If you have income from an estate or trust, any New York adjustments that apply to that income, as well as any additions to or subtractions from federal itemized deductions, will be shown in your share of a single fiduciary adjustment. If the adjustment is a net addition, include this amount on line 23; if the adjustment is a net subtraction, include this amount on line 31. Identify this item as FA and include the amount in the Identify area of these lines.

If you filed federal Form 4970, Tax on Accumulation Distribution of Trusts, the income you reported on line 1 of Form 4970 is not included on line 11 of Form IT-201 because the IRC considers the distribution part of federal gross income. You must therefore include on line 23 the amount of income you reported on Form 4970, line 1, less any interest income on state and local bonds and obligations of New York State and its local governments (that was included on Form 4970, line 5). Be sure to identify the source of this income as Form 4970 income in the Identify area.

S corporation shareholders

If you are a shareholder of a federal S corporation for which the election to be a New York S corporation was in effect for the tax year, include any of the following additions and subtractions that apply to your pro rata share of S corporation items of income, gain, loss, or deduction. Additions A-26, A-27, and A-28, and subtraction S-35 do not apply to you since they apply only to nonelecting S corporations. If the election to treat the corporation as a New York S corporation terminated during the tax year, you must make the additions and subtractions only to the extent they are attributable to the period for which the election to be a New York S corporation was in effect. Obtain your share of S corporation items of income, gain, loss, and deduction from the S corporation.

If you are a shareholder of an S corporation that was eligible to make the election to be a New York S corporation for the tax year but did not make the election, include additions A-26, A-27, A-28, and subtraction S-35.

If you were not eligible to make the election to treat your corporation as a New York S corporation because the corporation was not subject to Article 9-A, general business corporation franchise tax, or Article 32, banking corporation franchise tax, include any of the following additions and subtractions that apply to your pro rata share of S corporation items of income, gain, loss, or deduction. Additions A-25 through A-28, and subtractions S-34 and S-35 do not apply to you since they apply only to electing and nonelecting New York S corporations.

If a gain or loss is recognized on your federal income tax return due to the disposition of stock or indebtedness of an S corporation that did not elect to be a New York S corporation for any tax year after December 31, 1980, make addition A-28 or subtraction S-34, whichever applies to you.

You must make the adjustments for the tax year of the S corporation that ends in your tax year.

New York additions

Line 20 - 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 York State or its local governments? If No, go to line 21.

If Yes, enter any such interest income that you received or that was credited to you during 2009 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 market 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 during 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 or sold the bond.

Line 21 - Public employees 414(h) retirement contributions

Are you a public employee of NYS or its local governments? If No, go to line 22.

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 NYS 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 Department 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.

Line 22 - New York’s 529 college savings program distributions

Did you make a withdrawal during 2009 from an account established under New York’s 529 college savings program? If No, go to line 23.

If Yes, and the withdrawal was a nonqualified withdrawal, you must complete the worksheet on page 65.

A withdrawal is nonqualified if: 1) the withdrawal is actually disbursed in cash or in-kind from the college savings program and the funds are not used for the higher education of the designated beneficiary (even if the amount withdrawn is reinvested in New York’s 529 college savings program within the Internal Revenue Code 60-day rollover period); or 2) on or after January 1, 2003, the funds are transferred 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). However, nonqualified withdrawals do not include any withdrawals made in 2009 as a result of the death or disability of the designated beneficiary, regardless of how the funds are used.

Note: Transfers between accounts of family members not disbursed in cash or in-kind within New York’s program are not considered distributions and are therefore not required to be added back as nonqualified withdrawals.

Include the applicable amounts from all existing accounts you own on lines 1 through 7 of the worksheet below. Do not include amounts applicable to accounts that were closed in a prior tax year. If you are filing a joint return, include the applicable amounts from all existing accounts owned by you and your spouse.

Also include on lines 1 and 2 of the worksheet your share of any amounts withdrawn or contributed by a partnership of which you are a partner. A partnership includes a limited liability company (LLC) that has elected to be treated as a partnership for federal income tax purposes.

Please note: Before completing the worksheet below, you must first compute your Form IT-201, line 30, subtraction for New York’s 529 college savings program for 2009. See page 69.

Line 23 - Other additions

Use this line to report the following additions that are not specifically listed on Form IT-201.

Write in the applicable item number(s) (A-1 through A-28) and the amount of each addition in the Identify area. Enter the total amount of these other additions in the money column.

A-1 Income from certain obligations of U.S. government agencies or instrumentalities

If, during 2009, 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-2 Interest expense on loans used to buy obligations exempt from NYS tax, amortized bond premium on bonds that are exempt from NYS tax and other expenses relating to the production of income exempt from NYS tax

  1. If your federal AGI includes a deduction for interest expense used to buy bonds, obligations, or securities whose interest income is taxable for federal purposes but exempt from New York State tax, then include that interest expense.
  2. If your federal AGI includes a deduction for the amortization of bond premiums on bonds whose interest income is taxable for federal purposes but exempt from NYS tax, then include that amortized premium.
  3. If your federal AGI includes a deduction for expenses relating to the production of income which is taxable for federal purposes but exempt from New York State tax, then include that interest expense.

A-3 New York City flexible benefits program (IRC 125)

Remember to include this addition modification on line 23 if applicable.

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 Special additional mortgage recording tax deduction

If you deducted special additional mortgage recording tax in computing your federal AGI, and the special additional tax was paid before January 1, 1988, and in a prior year you were allowed a New York State personal income tax credit for that tax, then include the amount deducted. Do not make the addition for the tax paid to record a mortgage on or after January 1, 2004, even if you claimed a credit for that tax.

A-6 Special additional mortgage recording tax basis adjustment

If property on which you paid a special additional mortgage recording tax was sold or disposed of, and a special additional tax was paid before January 1, 1988, and in a prior year you claimed a New York State personal income tax credit for that tax, then include the amount, if any, of the federal basis of the property that was not adjusted to reflect the amount of the credit allowed.

A-7 Sales or dispositions of assets acquired from decedents

Note: This adjustment 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 included in 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.

A-8 Disposition of solar and wind energy systems

If in any tax year beginning on or after January 1, 1981, and ending before December 31, 1986, you took a New York State solar and wind energy credit on property, and if that property was sold or otherwise disposed of in 2009, and if a reportable gain resulted for federal income tax purposes from that sale or disposition, and if you had included the cost of the energy system in the federal basis of the property but did not reduce the federal basis by the state credit, then include the amount of the credit you had previously claimed.

A-9 New business investment; deferral recognition

If, in any tax year beginning on or after January 1, 1982, and before 1988, you chose to subtract all or a portion of a long term capital gain from your federal AGI because you reinvested that amount in a new New York business, and you sold that reinvestment in 2009, then include the amount that you previously subtracted.

A-10 Qualified emerging technology investments (QETI)

If you elected to defer the gain from the sale of QETI because you reinvested in a New York qualified emerging technology company, and if you sold that reinvestment in 2009, then you must include the amount previously deferred. See S-14 on page 70.

Did you file federal Schedule(s) C-EZ, C, E, or F?

If No, go to line 25.

If Yes, see A-11 through A-28.

A-11 Personal income taxes and unincorporated business taxes deducted in determining federal adjusted gross income

You may not deduct personal income taxes or unincorporated business taxes in computing your New York State adjusted gross income.

If you included a deduction for state, local, or foreign income taxes, including unincorporated business taxes, when computing your federal AGI, then you must include the amount of that deduction. For example, if you operated a business and deducted New York City unincorporated business tax on your federal Form 1040, Schedule C, as an expense of doing business, include this tax amount.

Partners

Include your distributive share of state, local, or foreign income taxes, including unincorporated business taxes, deducted in figuring net income.

S corporation shareholders

If you are a shareholder of a federal S corporation for which a New York S election was in effect, and if that corporation deducted taxes imposed by Article 9-A (general business corporation franchise tax), or Article 32 (banking corporation franchise tax), of the New York State Tax Law, then include your pro rata share of those taxes. (However, you do not need to include state or local taxes of another state, political subdivision of another state, or the District of Columbia.)

A-12 Percentage depletion

If you claimed a deduction on your federal return for percentage depletion, then include the amount deducted in computing your federal AGI. Also see S-24 on page 72.

A-13 Safe harbor leases (see IRC section 168(f)(8))

If, in computing your federal AGI, you took deductions attributable to a safe harbor lease (except for mass transit vehicles) made under an election provided for by IRC section 168(f)(8) as it was in effect for agreements entered into prior to January 1, 1984, then include those deductions. Also see A-14, S-26, and S-27.

A-14 Safe harbor leases

If your financial matters in 2009 involved a safe harbor lease (except for mass transit vehicles) made under an election provided for by section 168(f)(8) of the IRC as it was in effect for agreements entered into prior to January 1, 1984, then you must include the income that you would have included in your federal AGI if such an election had not been made. Also see A-13, S-26, and S-27.

A-15 Accelerated cost recovery system (ACRS) deduction

If you claimed ACRS depreciation on your federal return for:

  • property placed in service during tax years 1981 through 1984 (other than 280F property); or
  • property placed in service outside New York State during tax years 1985 through 1993 (other than 280F property) and you elect to continue using IRC 167 depreciation (see TSB-M-99(1)l);

then include the amount that was deducted in computing your federal AGI. You must attach Form IT‑399, New York State Depreciation Schedule.

A-16 ACRS property; year of disposition adjustment

If you disposed of property that was depreciated for federal purposes using ACRS, and if ACRS depreciation was not allowed for state purposes (see A-15), then you must complete Part 2 of Form IT-399, New York State Depreciation Schedule, to determine the amount to include. Also see S-29 on page 72.

A-17 Farmers’ school tax credit

If you claimed the farmers’ school tax credit on your 2008 New York State tax return, and if you deducted your school taxes in computing your federal AGI on your 2008 federal return, then you must include the amount of the credit claimed for 2008 on this year’s return. However, do not make this modification if you were required to report the amount of the credit as income on your 2009 federal return.

A-18 Sport utility vehicle expense deduction

If you claimed an IRC section 179 deduction on your federal return with respect to a sport utility vehicle that weighs more than 6,000 pounds, and you are not an eligible farmer as defined for purposes of the farmers’ school tax credit (see Form IT-217-I, Instructions for Form IT-217, Claim for Farmers’ School Tax Credit), then include the amount of that deduction.

A sport utility vehicle is any four-wheeled passenger vehicle manufactured primarily for use on public streets, roads, and highways. However, sport utility vehicle does not include (1) any ambulance, hearse, or combination ambulance-hearse used directly in a trade or business; (2) any vehicle used directly in the trade or business of transporting persons or property for compensation or hire; or (3) any truck, van, or motor home. A truck is any vehicle that has a primary load-carrying device or container attached, or is equipped with an open cargo area or covered box not readily accessible from the passenger compartment.

A-19 IRC section 168(k) property depreciation

With the exception of resurgence zone property and New York liberty zone property described in IRC section 1400L(b)(2), New York State does not follow the federal depreciation rules for IRC section 168(k) property placed in service inside or outside New York State on or after June 1, 2003. If you claimed a depreciation deduction for such property, and if no exception for resurgence zone or New York liberty zone property applies, then complete Part 1 of Form IT-398, New York State Depreciation Schedule for IRC Section 168(k) Property, to determine the amount to include. Attach Form IT-398 to your return.

A-20 Special depreciation

If you made an election for tax years beginning before 1987 for:

  • special depreciation,
  • research and development expenditures,
  • waste treatment facility expenditures,
  • air pollution control equipment expenditures, or
  • acid deposition control equipment,

then include the amount of depreciation or expenditures relating to these items that was deducted in computing your federal AGI. Also see S-25 on page 72.

A-21 Royalty and interest payments made to a related member or members

For tax years beginning on or after January 1, 2003, New York requires certain taxpayers to add back deductions they took on their federal return for certain royalty payments for the use of intangible property, such as trademarks or patents, and interest payments they made to a related member or members. Include the amount for any such payments you deducted on your federal return. See Tax Law section 612(r).

A-22 Environmental remediation insurance premiums

If you paid premiums for environmental remediation insurance and you claimed a deduction for such premiums and you also claimed the environmental remediation insurance credit, Form IT-613, Claim for Environmental Remediation Insurance Credit, then include the amount of the environmental remediation insurance credit allowed.

A-23 Domestic production activities deduction

If you claimed an IRC section 199 domestic production activities deduction in computing your federal AGI, then include the amount deducted.

A-24 Metropolitan commuter transportation mobility tax (MCTMT)

If you claimed a federal deduction for the MCTMT imposed under Article 23 of the Tax Law, then include the amount deducted.

Additions A-25 through A-28 apply to S corporation shareholders only. For additional information, see New York State Publication 35, New York Tax Treatment of S Corporations and Their Shareholders, and page 64.

A-25 S corporation shareholders; reduction for taxes

If you are a shareholder of an S corporation for which a New York S corporation election was in effect for the tax year, then include your pro rata share of the S corporation’s reductions for taxes imposed on built-in gains and reductions for taxes imposed on excess net passive income as described in IRC sections 1366(f)(2) and (3).

A-26 S corporation shareholders; pass-through loss or deduction items

If you are a shareholder of an S corporation which is a New York C corporation, then include any S corporation pass-through items of loss or deduction you took into account in computing your federal AGI, pursuant to IRC section 1366.

A-27 S corporation shareholders

If you did not include S corporation distributions in your federal AGI due to the application of IRC sections 1368, 1371(e), or 1379(c), and if these distributions were not previously subject to New York personal income tax because the corporation was a New York C corporation, then include these distributions.

A-28 S corporation shareholders; disposition of stock or indebtedness with increased basis

Federal law requires holders of stock or indebtedness in a federal S corporation to include undistributed taxable income in their federal AGI and take a corresponding increase in basis. New York law requires a similar increase in basis on disposition of the stock or indebtedness where the federal S corporation is or was a New York C corporation.

If you reported a federal gain or loss because of the disposition of stock or indebtedness of an S corporation, and if that S corporation was a New York C corporation for any tax year beginning after December 31, 1980 (in the case of a corporation taxable under Article 9-A, general business corporation tax), or December 31, 1996 (in the case of a corporation taxable under Article 32, banking corporation franchise tax), then include the increase in the basis of the stock or indebtedness that is due to the application of IRC sections 1376(a) (as in effect for tax years beginning before January 1, 1983) and 1367(a)(1)(A) and (B) for each tax year that a New York S election was not in effect.

New York subtractions

Line 26 - 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 27.

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 (for more details, see Publication 36, General Information for Senior Citizens and Retired Persons).
  • 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.

Also include distributions received from a New York State or local pension plan or from a federal government pension plan as a nonemployee spouse in accordance with a court-issued qualified domestic relations order (QDRO) that meets the criteria of IRC section 414(p)(1)(A) or in accordance with a domestic relations order (DRO) issued by a New York court. For additional information, see Publication 36.

You may not subtract (1) 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, or (2) periodic distributions from government (IRC section 457) deferred compensation plans. However, these payments and distributions may qualify for the pension and annuity income exclusion described in the instructions for line 29 below.

Line 28 - Interest income on U.S. government bonds

Did you include interest income from U.S. government bonds or other U.S. government obligations on lines 2, 6, or 11? If No, go to line 29.

If Yes, enter the amount of interest income earned from bonds or other obligations of the U.S. government.

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 computing your allowable subtraction (if any).

If you include an amount on line 28 from more than one line on Form IT-201, attach a schedule showing the breakdown from each line.

Do not list the same interest more than once on lines 28 and 31; see the instructions for line 31, S-1 and S-3 on page 69.

Line 29 - Pension and annuity income exclusion

Did you enter an amount on line 9 or 10 that was not from a NYS or local government pension plan or federal government pension plan? If No, go to line 30.

If Yes, and you were 59½ before January 1, 2009, enter the qualifying pension and annuity income included in your 2009 federal AGI, but not more than $20,000. If you became 59½ during 2009, 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.

Qualifying pension and annuity income does not include distributions received as a nonemployee spouse in accordance with a court-issued qualified domestic relations order (QDRO) that meets the criteria of IRC section 414(p)(1)(A) or in accordance with a domestic relations order (DRO) issued by a New York court. For additional information, see Publication 36.

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 2009 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 2009 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 2009, enter only the amount received after the decedent would have become 59½, but not more than $20,000.

In addition, the pension and annuity income exclusion of the decedent that you are eligible to claim as a beneficiary must first be reduced by the amount subtracted on the decedent’s New York State personal income tax return, if any. The total pension and annuity income exclusion claimed by the decedent and the decedent’s beneficiaries cannot exceed $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. Each beneficiary’s share of the $20,000 exclusion is determined by multiplying $20,000 by a fraction whose numerator is the value of the pensions and annuities inherited by the beneficiary, and whose denominator is the total value inherited by all beneficiaries of the decedent’s pensions and annuities.

Example: A taxpayer received pension and annuity income totaling $6,000 as a beneficiary of a decedent who was 59½ before January 1, 2009. 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 2009. 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 income 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.

Line 30 - New York’s 529 college savings program deduction/earnings distributions

During 2009, did you, as an account owner, make contributions to or a withdrawal from one or more tuition savings accounts established under New York’s 529 college savings program? If No, go to line 31.

If you, as an account owner, made contributions, enter the amount up to $5,000 ($10,000 for married taxpayers filing a joint return) on line 1 of the worksheet below.

If you made a withdrawal and part of the withdrawal was included in your federal AGI on line 21 of federal Form 1040, then enter that amount on line 2 of the worksheet.

Line 31 - Other subtractions

Use this line to report the following subtractions that are not specifically listed on Form IT-201.

Write in the applicable item number(s) (S-1 through S-35) and the amount of each subtraction in the Identify area on line 31. Enter the total amount of these subtractions on line 31 in the money column.

S-1 Certain investment income from U.S. government agencies

Include any interest or dividend income on bonds or securities of any U.S. authority, commission, or instrumentality that is exempt from state income taxes under federal laws (but that you included in your federal AGI).

S-2 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 laws (but that you included in your federal AGI).

S-3 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-4 Disability income exclusion

Complete Form IT-221, Disability Income Exclusion, to compute your disability income exclusion if you were not yet 65 when your tax year ended, and you retired on disability, and you were permanently and totally disabled when you retired.

S-5 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.

S-6 New York State organized militia income

Include income that you received as a member of the New York State organized militia for performing active service within NYS due to either state active duty orders issued in accordance with Military Law section 6.1 or federal active duty orders, for service other than training, issued in accordance with Title 10 of the United States Code, 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). 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-7 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-8 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-9 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 New York State 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 or New York itemized deductions.

S-10 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-11 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-12 Professional service corporation shareholders

If in a taxable year ending after 1969 and beginning before 1988, you were required to add to 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 2009 federal AGI.

S-13 Gain to be subtracted from the sale of a new business investment reported on your federal income tax return

If you reported a capital gain on your federal income tax return from the sale of a new business investment, as defined in NYS Tax Law section 612(o), that was issued before 1988 and was held at least six years, then include one-hundred percent (100%) of that federal gain.

S-14 Qualified emerging technology investments (QETI)

In general, you may defer the gain on the sale of QETI that are (1) held for more than 36 months, and (2) rolled over into the purchase of replacement QETI within 365 days from, and including, the date of sale. However:

  • You must recognize any gain to the extent that the amount realized on the sale of the original QETI exceeds the cost of replacement QETI;
  • You must add back any deferred gain in the year you sell the replacement QETI; and
  • The gain deferral applies only to QETI sold on or after March 12, 1998, that was held for more than 36 months.

If you elect to defer the gain from the sale of QETI, then include the amount of the deferred gain. This amount may not exceed the amount of the gain included in your federal AGI.

  • If the purchase of replacement QETI within the 365-day period occurred in the same taxable year as the sale of the original QETI, or in the following taxable year and before the date you filed your personal income tax return, then, take the deduction on that return.
  • If the purchase of replacement QETI within the 365-day period occurred in the following taxable year and on or after the date you filed your personal income tax return, then you must file an amended return to claim the deduction (see Form IT-201-X, Amended Resident Income Tax Return, on page 11).
  • If the deferred gain must be included in a subsequent year’s tax return because the replacement QETI has been sold, then include that amount as an addition to federal AGI (see A-10 on page 66).

A QETI is an investment in the stock of a corporation, or an ownership interest in a partnership or limited liability company (LLC) that is a qualified emerging technology company, or an investment in a partnership or an LLC to the extent that such partnership or LLC invests in such companies. The taxpayer must acquire the investment as provided in IRC section 1202(C)(1)(B), or from a person who acquired it pursuant to that section. IRC section 1202(c)(1)(B) requires the acquisition to be original issue from the company, either directly or through an underwriter, and in exchange for cash, services, or property (but not in stock).

A qualified emerging technology company (QETC) is a company that is located in New York State, has total annual product sales of 10 million dollars or less, and meets either of the following criteria:

  • its primary products or services are classified as emerging technologies; or
  • it has research and development activities in New York State and its ratio of research and development funds to net sales equals or exceeds the average ratio for all surveyed companies classified (as determined by the National Science Foundation in its most recent Survey of Industry Research and Development, or any comparable successor survey, as determined by the Tax Department).

S-15 Sales or dispositions of assets acquired before 1960 with greater state than federal bases

New York State income tax laws prior to 1960 and current laws regarding depletion can result in a difference in the state and federal adjusted bases of certain assets. If you realize a federally taxable gain from the sale of an asset that had a higher adjusted basis for state tax purposes, you may make an adjustment to reduce your gain for state tax purposes.

If your federal AGI included gain that was from either:

  • property that had a higher adjusted basis for NYS income tax purposes than for federal tax purposes on December 31, 1959 (or on the last day of a fiscal year ending during 1960); or
  • property that was held in connection with mines, oil or gas wells, and other natural deposits and that had a higher adjusted basis for NYS income tax purposes than for federal tax purposes when sold;

then include the lesser of the gain itself or the difference in the adjusted bases.

Note: If you divide gain with respect to jointly owned property between you and your spouse, then you must also divide any subtraction for different adjusted bases between you and your spouse.

S-16 Income earned before 1960 and previously reported to New York State

Include any income (including annuity income) or gain you included in your 2009 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-17 Living organ donors

If during 2009 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.

Married taxpayers: If you both qualify, you and your spouse can each claim a subtraction up to $10,000. However, you cannot claim any unused part of your spouse’s subtraction.

S-18 Military pay

Include military pay you included in your federal adjusted gross income that you received for active service as a member in the armed services of the United States in an area designated as a combat zone.

S-19 New York Higher Education Loan Program (Help)

Include any interest you paid in 2009 on loans made to you under HELP.

Did you file federal Schedule(s) C-EZ, C, E, or F?

If No, go to the instructions for line 34.

If Yes, see S-20 through S-35.

S-20 Trade or business interest expense on loans used to buy federally tax exempt obligations that are taxable to New York State

You may deduct interest expense you incur to buy an obligation that generates investment income that is taxable to a trade or business. If you included, on either line 20 or line 23, interest income from bonds or other obligations that is federally tax exempt but taxable to NYS, and the expense you incurred in buying the obligation is attributable to a trade or business you carried on, then include that expense.

S-21 Trade or business expenses (other than interest expense) connected with federally tax-exempt income that is taxable to New York State

You may deduct expenses you incur to acquire or maintain income that is taxable to a trade or business. If you included, on either line 20 or line 23, income that is federally tax exempt but taxable to NYS, and if the expense you incurred to either produce or collect that income or manage, conserve or protect the assets that produce that income was not deducted for federal purposes, and if those expenses are attributable to a trade or business you carried on, then include that expense.

S-22 Amortizable bond premiums on bonds that are owned by a trade or business and the interest on which is federally tax-exempt income but taxable to New York State

You may deduct expenses you incur to buy an obligation that generates investment income that is taxable to a trade or business.

If you are including, on either line 20 or line 23, interest income that is federally tax exempt but taxable to New York State, and if those bonds were bought for more than their face value (i.e., at a premium), and if you did not reduce your federal AGI by deducting the amortization of that premium attributable to 2009, and if those bonds were owned by a trade or business carried on by you in 2009 (as opposed to personal investments), then include that amortization.

S-23 Wage and salary expenses allowed as federal credits but not as federal expenses

If you took a federal credit for which a deduction for wages and salary expenses is not allowed under IRC section 280C, then include the amount of those wages you did not deduct on your federal return.

S-24 Cost depletion

If you are making addition A-12 for any percentage depletion, then include the cost depletion that IRC section 611 would allow on that property without any reference to either IRC section 613 or 613-A.

S-25 Special depreciation expenditures

You may carry over excess expenditures you incurred in taxable years beginning before 1987 in connection with depreciable, tangible business property located in New York State to the following tax year or years, and deduct such expenditures in computing your New York AGI for that year or years, if the expenditures exceed your New York AGI for that year before the allowance of those expenditures. Complete Form IT-211, Special Depreciation Schedule, to compute the amount to include. Attach Form IT-211 to your return.

S-26 Safe harbor leases

Include any amount you included in federal AGI (except for mass transit vehicles) solely because you made the safe harbor election on your federal return for agreements entered into before January 1, 1984.

S-27 Safe harbor leases

Include any amount that you could have excluded from federal AGI (except for mass transit vehicles) had you not made the safe harbor election on your federal return for agreements entered into before January 1, 1984.

S-28 New York depreciation allowed

If you claimed ACRS depreciation on your federal return for:

  • property placed in service during tax years 1981 through 1984 (except IRC section 280F property); or
  • property placed in service outside New York State during tax years 1985 through 1993 (except IRC section 280F property) and you elect to continue using IRC section 167 depreciation (see TSB-M-99(1)I);

then include the amount of your New York depreciation. Complete and attach Form IT-399, New York State Depreciation Schedule, to your return.

S-29 ACRS (year of disposition adjustment)

If you disposed of property in 2009 that was depreciated for federal purposes using ACRS, and if your total federal ACRS deduction exceeds your New York depreciation deduction for that property, then complete Part 2 of Form IT-399, New York State Depreciation Schedule, to compute the amount to include. See A-16 on page 67. Attach Form IT-399 to your return.

S-30 Sport utility vehicle expense deduction recapture

If you previously claimed an IRC section 179 deduction with respect to a sport utility vehicle that weighs more than 6,000 pounds, and you had to recapture any amount of that deduction in computing your federal AGI for 2009, and if you are not an eligible farmer as defined for the farmers’ school tax credit, then include the recapture amount. (See A-18 on page 67 for the definition of a sport utility vehicle.)

S-31 IRC section 168(k) property depreciation

With the exception of resurgence zone property and New York liberty zone property described in IRC section 1400L(b)(2), New York State does not follow the federal depreciation rules for IRC section 168(k) property placed in service inside or outside New York State on or after June 1, 2003. If you claimed a depreciation deduction for such property, and if no exception for resurgence zone or New York liberty zone property applies, then complete Part 1 of Form IT-398, New York State Depreciation Schedule for IRC Section 168(k) Property, to compute the amount of New York depreciation to include. Attach Form IT-398 to your return.

S-32 IRC section 168(k) property (year of disposition adjustment)

If you disposed of IRC section 168(k) property placed in service inside or outside New York State on or after June 1, 2003 (except for resurgence zone property, and New York liberty zone property described in IRC section 1400L(b)(2)), and your total federal depreciation deduction was more than your New York depreciation deduction for that property, then complete Part 2 of Form IT‑398, New York State Depreciation Schedule for IRC Section 168(k) Property, to compute the amount of the disposition adjustment to include. Attach Form IT-398 to your return.

S-33 Royalty and interest payments made to a related member or members

For tax years beginning on or after January 1, 2003, New York requires taxpayers to add back deductions they took on their federal return for certain royalty payments for the use of intangible property, such as trademarks or patents, and interest payments they made to a related member or members. See instructions for addition A-21 on page 67. In such a case, the recipient of the payments must subtract the payments in computing New York AGI. If you received such a related member payment, include the amount you included in your federal taxable income. See section 612(r) of the Tax Law.

Subtractions S-34 and S-35 apply to S corporation shareholders only. For additional information, see New York State Publication 35, New York Treatment of S Corporations and Their Shareholders.

S-34 S corporation shareholders

If you reported a federal gain or loss because of the disposition of stock or indebtedness of an S corporation, and if that S corporation was a New York C corporation for any tax year beginning after December 31, 1980 (in the case of a corporation taxable under Article 9-A, general business corporation tax), or December 31, 1996 (in the case of a corporation taxable under Article 32, banking corporation franchise tax), then include the reduction in basis of the stock or indebtedness that is due to the application of IRC section 1376(b) (as in effect for tax years beginning before January 1, 1983) and 1367(a)(2)(B) and (C) for each tax year that the New York election was not in effect.

If, with respect to stock described above, you made any New York additions to federal AGI required under A-27 on page 67, then include the total of those additions. See New York Tax Law section 612(b)(20).

S-35 S corporation shareholders - pass-through income

If you included in your federal AGI any S corporation pass-through income pursuant to IRC section 1366 and the corporation is a New York C corporation, then include the pass-through income.

Line 33 - New York adjusted gross income

Do not leave line 33 blank.

Step 5 - Enter your standard or itemized deduction and dependent exemption amounts

Line 34 - Standard or itemized deduction

Follow these steps to determine which deduction to use:

  1. If you took the standard deduction on your federal return, or if you did not have to file a federal return, you must take the New York standard deduction. Use the standard deduction table on page 2 of Form IT-201 to find the standard deduction amount for your filing status. Enter the amount on line 34, mark an X in the Standard box, and go to line 35.
  2. If you itemized deductions on your federal return, use the itemized deduction worksheet on page 2 of Form IT-201 and the instructions below to compute your New York itemized deduction. Compare the line p amount from the worksheet to your New York standard deduction amount from the standard deduction table, also on page 2. For greater tax savings, enter the larger of these amounts on line 34 and mark an X in the appropriate box, Standard or Itemized.

If you are married and filing separate returns (filing status 3), both of you must take the standard deduction unless both of you itemized deductions on your federal returns and both of you elect to itemize deductions on your New York returns.

Note: If you paid qualified college tuition expenses, your New York itemized deduction may be increased to an amount greater than your New York standard deduction as shown in the table on Form IT-201. You should complete the New York State itemized deduction worksheet on Form IT-201 to determine if your allowable New York itemized deduction is greater than your standard deduction.

New York itemized deduction overview – The starting point in computing your New York itemized deduction amount is your federal itemized deductions from federal Schedule A. However, differences between federal and New York State tax laws make it necessary to make certain adjustments to your federal itemized deductions in computing your New York itemized deduction.

The subtraction adjustments on line i of the NYS itemized deduction worksheet reflect the fact that New York does not allow certain federal itemized deductions such as the federal deduction for state and local income taxes. Because of limits on certain federal deductions, and the overall limit on federal itemized deductions applicable to higher income taxpayers, it may be necessary for you to complete one or more worksheets to determine the amount of the New York subtraction adjustment.

Addition adjustments on line k of the NYS itemized deduction worksheet reflect the fact that New York allows certain deductions that are not allowed for federal purposes such as expenses related to income that is exempt from federal tax but subject to New York tax.

Also, further adjustments may be required if you are subject to the New York itemized adjustment for higher income taxpayers (line m of the NYS itemized deduction worksheet), or if you elect to claim the New York itemized deduction for college tuition expenses (line o of the NYS itemized deduction worksheet).

Before you begin: Locate your federal Schedule A, and, if you were required to complete it, the federal itemized deduction worksheet in the instructions for Form 1040.

New York State itemized deduction worksheet instructions (page 2, Form IT-201)

Lines a through h

Enter the amounts from the designated lines of your federal Schedule A (Form 1040).

Line i - Subtraction adjustments A through F

To compute your New York itemized deduction, you must subtract certain amounts deducted on your federal return that cannot be deducted on your state return. Follow these steps:

  1. Add the amounts of the adjustments described in items A through F below and on page 74. If this total includes any of the adjustments described in items B through F, list them on a separate piece of paper marked Itemized deduction worksheet-subtraction adjustments. Identify the amount of each adjustment by letter (B through F) and attach that paper to your return.

    A State, local, and foreign income taxes from federal Schedule A, lines 5 and 8.

    B Ordinary and necessary expenses paid or incurred in connection with income, or property held for the production of income, which is exempt from New York income tax but only to the extent included in total federal itemized deductions.

    C Amortization of bond premium attributable to 2009 on any bond whose interest income is exempt from New York income tax, but only to the extent included in total federal itemized deductions.

    D Interest expense on money borrowed to purchase or carry bonds or securities whose interest is exempt from New York income tax, but only to the extent included in total federal itemized deductions.

    E If you are a shareholder of a federal S corporation that could elect but did not elect to be a New York S corporation, any S corporation deductions included in your total federal itemized deductions. If an S corporation short year is involved, you must allocate those deductions.

    F Premiums paid for long-term care insurance to the extent deducted in determining federal taxable income (from line 5 of Worksheet 1 ).

    Partners: Include on line i the subtractions described on page 73 and above that apply to your share of partnership deduction items. Obtain your share of partnership items from your Form IT-204-IP, lines 26a through 26f.

    S corporation shareholders: If you are a shareholder of a federal S corporation that is a New York S corporation, or if you were not eligible to make the election to treat your corporation as a New York S corporation because the corporation is not subject to Article 9-A, general business corporation franchise tax, or Article 32, banking corporation franchise tax, include on line i subtractions B, C, D, and F described on page 73 and above that apply to your pro rata share of S corporation items of income, loss or deduction. If the election to be a New York S corporation terminated during the tax year, you must allocate those items. Obtain your share of S corporation items from the S corporation. If you are a shareholder of a federal S corporation that could, but did not, elect to be a New York S corporation, include subtraction E only.

  2. If the amount on Form IT-201, line 18, is $166,800 or less ($83,400 if married filing separately), enter the total of your subtraction adjustments on line i.
  3. If the amount on Form IT-201, line 18, is greater than $166,800 ($83,400 if married filing separately), you must complete Worksheet 2 below.

Line j

Subtract line i from line h and enter the result. If you made no entry on line i, enter the amount from line h on line j.

Line k - Addition adjustments G, H, and I

In computing your New York itemized deduction, you may add certain amounts that you were not entitled to deduct on your federal return but that you may deduct on your New York State return.

List any of the addition adjustments below that apply to you on a separate piece of paper marked Itemized deduction worksheet - addition adjustments. Identify the amount of each adjustment that applies to you by item letter (G, H, and I). Add all of your addition adjustments and enter the total on line k. Attach that paper to your return.

G Interest expense on money borrowed to purchase or carry bonds or securities whose interest is subject to New York income tax, but exempt from federal income tax, if this interest expense was not deducted on your federal return or shown as a New York subtraction.

H Ordinary and necessary expenses paid or incurred during 2009 in connection with income, or property held for the production of income, which is subject to New York income tax but exempt from federal income tax, if these expenses were not deducted on your federal return or shown as a New York subtraction.

I Amortization of bond premium attributable to 2009 on any bond whose interest income is subject to New York income tax, but exempt from federal income tax, if this amortization was not deducted on your federal return or shown as a New York subtraction.

Partners: Include on line k the additions described on page 74 that apply to your share of partnership deduction items. Obtain your share of partnership items from your Form IT-204-IP, lines 24a through 24f.

S corporation shareholders: If you are a shareholder of a federal S corporation that is a New York S corporation for the tax year, or if you were not eligible to make the election to treat your corporation as a New York S corporation because the corporation is not subject to Article 9-A, general business corporation franchise tax, or Article 32, banking corporation franchise tax, include on line k additions G through I, described on page 74, that apply to your pro rata share of S corporation items of income, loss or deduction. If the election to be a New York S corporation terminated during the tax year, you must allocate those items. Obtain your share of S corporation items from the S corporation.

Line l

Add lines j and k and enter the total on line l. If you made no entry on line k, enter the amount from line j on line l.

Line m - Itemized deduction adjustment

Enter the amount of your itemized deduction adjustment. If Form IT-201, line 33 is:

  • $100,000 or less, leave line m blank and go to line n;
  • more than $100,000 but not more than $475,000, fill in Worksheet 3 below;
  • more than $475,000 but not more than $525,000, fill in Worksheet 4 below;
  • more than $525,000 but not more than $1,000,000, enter 50% (.50) of line l on line m; or
  • more than $1,000,000, fill in Worksheet 5 below.

Line n

Subtract line m from line l. If you made no entry on line m, enter the amount from line l on line n.

Line o - College tuition itemized deduction

Did you, your spouse, or your dependent(s) pay any college tuition expenses during 2009? If No, enter 0 and go to line p. If Yes, you may be eligible to claim either the college tuition itemized deduction or the college tuition credit. However, you cannot claim both.

Complete Form IT-272, Claim for College Tuition Credit or Itemized Deduction, to compute your college tuition itemized deduction. Attach Form IT-272 to your return.

Line 36 - Dependent exemptions

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 purposes.

Step 6 - Compute your taxes

Line 39 - New York State tax

Is line 33 (your New York AGI) $100,000 or less?

If Yes, find your New York State tax using the 2009 New York State Tax Table on pages 41 through 48, or if line 38 is $65,000 or more, use the New York State tax rate schedule on page 49. Enter the tax due on line 39.

If No, see Tax computation - New York AGI of more than $100,000, beginning on page 50.

Line 40 - New York State household credit

If you marked the Yes box at item (C) on the front of Form IT-201, you do not qualify for this credit and should go to line 41. If you marked No, use the appropriate table (1, 2, or 3) below or on page 78 to determine the amount to enter on line 40.

  • Filing status 1 only (Single) - Use New York State household credit table 1 below.
  • Filing status 2, 3 and 5 - Use New York State household credit table 2 below.
  • Filing status 3 only (Married filing separate return) - Use New York State household credit table 3 on page 78.

Line 41 - Resident credit

Did you have income from sources outside New York State and pay income tax to another state, a local government of another state, the District of Columbia, or to a province of Canada? If No, go to line 42.

If Yes, complete Form IT-112-R, New York State Resident Credit, and, if applicable, Form IT-112-C, New York State Resident Credit for Taxes Paid to a Province of Canada. Enter the total amount of resident credit on line 41 and attach either form or both forms to your return.

Line 42 - Other New York State nonrefundable credits

See the credit charts on pages 6 through 9 for a listing of nonrefundable credits. If you are claiming any nonrefundable credits, complete the appropriate credit forms and Form IT-201-ATT. Transfer the amount of nonrefundable credits to line 42. You must attach the completed credit forms and Form IT-201-ATT to your return.

Line 45 - Net other New York State taxes

See the Other credits and taxes chart on pages 91 and 92. If you are subject to any other taxes, complete the appropriate forms and Part 2 of Form IT-201-ATT. Transfer the total amount of net other New York State taxes to line 45. You must attach the completed forms and Form IT-201-ATT to your return.

Line 47 - New York City resident tax (NYC residents only; part-year residents, see line 50)

If you are married and filing a joint New York State return and only one of you was a resident of New York City for all of 2009, do not enter an amount here. See the instructions for line 51 on page 80.

Is line 38 (your New York taxable income) less than $65,000?

If Yes, find your New York City resident tax using the 2009 New York City Tax Table on pages 52 through 59. Enter the tax on line 47.

If No, find your New York City resident tax using the New York City tax rate schedule on page 60. Enter the tax on line 47.

Line 48 - New York City household credit (NYC residents only)

If you marked the Yes box at item (C) on the front of Form IT-201, you do not qualify for this credit and should go to line 49. If you marked No, use the appropriate table (4, 5, or 6) below to determine the amount to enter on line 48.

If you are married and filing a joint New York State return and only one of you was a resident of New York City for all of 2009, do not enter an amount here. See the instructions for line 51 on page 80.

  • Filing status 1 only (Single) - Use New York City household credit table 4 below.
  • Filing status 2, 4 and 5 - Use New York City household credit table 5 below.
  • Filing status 3 - only (Married filing separate return) - Use New York City household credit table 6 below.

Line 50 - Part-year New York City resident tax

If you were a New York City resident for only part of 2009, complete Form IT-360.1, Change of City Resident Status. Enter the tax amount on line 50 and attach Form IT-360.1 to your return. For more information see Form IT-360.1-I, Instructions for Form IT-360.1.

Line 51 - Other New York City taxes

Enter the total amount of other New York City taxes from Form IT-201-ATT, Part 3, line 34.

If you are married and filing a joint New York State return and only one of you was a resident of New York City for all of 2009, 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). The spouse that was a part-year NYC resident in 2009 should compute his or her part-year NYC resident tax on Form IT-360.1. Transfer the combined tax amounts of both spouses from your separate sheet to line 51. 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. Attach it to your return.

If one spouse was a resident of New York City and the other a nonresident for all of 2009, 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 51. 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. Attach it to your return.

If you are self-employed and carry on a trade, business, or profession in New York City, you may also be required to file New York City’s Form NYC-202, Unincorporated Business Tax Return for Individuals, Estates and Trusts. Since New York State does not administer the NYC unincorporated business tax, do not file your Form NYC-202 with your state return.

Line 53 - New York City nonrefundable credits

Can you claim either the NYC unincorporated business tax (UBT) credit or the New York City accumulation distribution credit? (See the charts on pages 6 through 9.) If No, go to line 54. If Yes, complete Section C of Form IT-201-ATT and enter the amount from Form IT-201-ATT, line 10, on line 53.

Line 55 - Yonkers resident income tax surcharge

Were you a full-year resident of Yonkers, and did you make an entry of more than 0 on line 46? If No, go to line 56.

If Yes, complete the Yonkers Worksheet below and enter the amount from line l.

If you are filing jointly (filing status 2) and only one spouse was a Yonkers resident for all of 2009, 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. Enter the amount computed on line 55. 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.

Line 56 - Yonkers nonresident earnings tax

If you were not a resident of Yonkers, did you earn wages or conduct a trade or business there either as an individual or as a member of a partnership? If No, go to line 57.

If Yes, complete Form Y-203, Yonkers Nonresident Earnings Tax Return. Enter the amount of tax on line 56 and attach Form Y-203 to your return.

Line 57 - Part-year Yonkers resident income tax surcharge

If you were a resident of Yonkers for only part of 2009, complete Form IT-360.1, Change of City Resident Status. Enter the tax amount on line 57 and attach Form IT-360.1 to your return.

Line 59 - Sales or use tax

Report your sales or use tax liability on this line. You owe sales or compensating use tax if you:

  • purchased an item or service subject to tax that is delivered to you in New York State without payment of New York State and local tax to the seller; or
  • purchased an item or service outside New York State that is subject to tax in New York State (and you were a resident of New York State at the time of purchase) with subsequent use in New York State.

Note: You may be entitled to a credit for sales tax paid to another state. See the exact calculation method in the instructions for Form ST-140, Individual Purchaser’s Annual Report of Sales and Use Tax.

For sales and use tax purposes, a resident includes persons who have a permanent place of abode in the state. Accordingly, you may be a resident for sales tax purposes even though you may not be a resident for income tax purposes. See the instructions for Form ST-140 for more information.

You may not use this line to report:

  • any sales and use tax on business purchases if the business is registered for sales and use tax purposes. You must report this tax on the business’s sales tax return.
  • any unpaid sales and use tax on motor vehicles, trailers, all-terrain vehicles, vessels, or snowmobiles. This tax is paid directly to the Department of Motor Vehicles.

An unpaid sales or use tax liability commonly arises if you made purchases through the Internet, by catalog, from television shopping channels, or on an Indian reservation, or if you purchased items or services subject to tax in another state and brought them back to New York for use here.

Example 1: You purchased a computer over the Internet that was delivered to your house in Monroe County, New York, from an out-of-state company and did not pay sales tax to that company.

Example 2: You purchased a book on a trip to New Hampshire that you brought back to your residence in Nassau County, New York, for use there.

You may also owe an additional local tax if you made a purchase in a locality in New York State and brought the item into or subsequently used the service in another New York State locality where you were a resident and that locality had a higher tax rate than where you made the purchase.

Failure to pay sales or use tax may result in the imposition of penalty and interest. The Tax Department conducts routine audits based on information received from third parties, including the U.S. Customs Service and other states. If you owe sales or use tax, you may report the amount you owe on your personal income tax return rather than filing Form ST-140.

Using the sales and use tax chart below is an easy way to compute your liability for all your purchases of items or services costing less than $1,000 each (excluding shipping and handling) that are not related to a business, rental real estate, or royalty activities.

You must use Form ST-140 to calculate your sales and use tax liability to be reported on this return if any of the following apply:

  • You prefer to calculate the exact amount of sales and use tax due.
  • You owe sales or use tax on an item or service costing $1,000 or more (excluding shipping and handling).
  • You owe sales or use tax for purchases related to a business not registered for sales tax purposes, rental real estate, or royalty activities.

Include the amount from Form ST-140, line 4, on Form IT-201, line 59. Do not attach Form ST-140 to your return.

If you owe sales or use tax on an item or service costing $25,000 or more, you must complete Form IT-135, Sales and Use Tax Report for Purchases of Items and Services Costing $25,000 or More, and attach it to your return.

If you do not owe any sales or use tax, you must enter 0 on line 59. Do not leave line 59 blank.

For additional information on when you may owe sales or use tax to New York, see Publication 774, Purchaser’s Obligations to Pay Sales and Use Taxes Directly to the Tax Department, Questions and Answers. For more information on taxable and exempt goods and services, see Publication 850, New York State and Local Sales and Use Tax Quick Reference Guide.

Step 7 - Add voluntary contributions

Line 60 (60a through 60g)

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 60a through 60g). Enter the total amount of all your contributions combined on line 60.

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

Your contribution will benefit New York’s fish, wildlife, and marine resources, and you can receive a free issue of Conservationist magazine. Call 1 800 678-6399 for your free sample issue. For more information about New York State’s environmental conservation programs, go to www.dec.ny.gov. For information about Conservationist, go to www.TheConservationist.org.

Missing and Exploited Children Clearinghouse (MECC) Fund (Missing/Exploited Children Fund)

Each year over 20,000 children are reported missing in New York State. Your contribution will benefit the New York State Missing and Exploited Children Clearinghouse. This organization works with police agencies and parents to locate missing children and to promote child safety through education. Contributions are used to distribute educational materials, disseminate missing child alerts, and conduct investigative training for police officers. For additional information about services and free safety publications visit www.criminaljustice.state.ny.us or call 1 800 FIND-KID (346-3543).Breast Cancer Research and Education Fund (Breast Cancer Research Fund)

Your contributions to the Breast Cancer Research and Education Fund will support ground-breaking biomedical research studies and education projects in New York State. Help make breast cancer a disease of the past. New York State will match your contribution to the Breast Cancer Research and Education Fund, dollar for dollar.

Prostate Cancer Research, Detection, and Education Fund (Prostate Cancer Research Fund)

The New York State Prostate Cancer Coalition is a statewide nonprofit organization, focused on promotion and coordination of prostate cancer awareness, research, support groups and improving access to clinical trials. We are patients, family, friends and caregivers, all fighting cancer, together. For more information, go to www.newyorkprostate.org. New York State will match your contribution to the Prostate Cancer Research, Detection, and Education Fund, dollar for dollar.

Alzheimer’s Disease Fund (Alzheimer’s Fund)

Contributions to this fund support services provided by the Alzheimer’s Disease Program administered by the New York State Department of Health. This program is designed to provide education, counseling, respite, support groups, and other supportive services to people with Alzheimer’s disease, their families, caregivers, and health care professionals.

United States Olympic Committee/Lake Placid Olympic Training Center (Olympic Fund)

Contributions to this fund help support the Olympic Training Center in Lake Placid. The $16 million complex is one of just three U.S. Olympic training centers in the United States. The center is used primarily by U.S. athletes who are training to compete in future winter and summer Olympic and Paralympic sports. Individual contributions must be $2. If you are married filing jointly and your spouse also wants to contribute, enter $4.

National September 11 Memorial & Museum at the World Trade Center (9/11 Memorial)

Your contribution to the National September 11 Memorial & Museum will help create the Memorial & Museum which will commemorate and honor the thousands of people who died in the attacks of September 11, 2001, and February 26, 1993. The Memorial will recognize the endurance of those who survived, the courage of those who risked their lives to save others, and the compassion of all who supported us in our darkest hours. Help New York State, the nation, and the world remember by making a contribution. For more information, go to www.national911memorial.org.

Step 8 - Enter your payments and credits

Line 63 - Empire State child credit

Did you claim the federal child tax credit for 2009 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 64.

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-201, line 63. Attach Form IT-213 to your return. For more information, see the instructions for Form IT-213.

Line 64 - NYS / NYC child and dependent care credit

Did you qualify to claim the federal child and dependent care credit for 2009 (whether or not you actually claimed it)?

If No, you do not qualify for this credit. Go to line 65.

If Yes, complete Form IT-216, Claim for Child and Dependent Care Credit, to determine your New York State child and dependent care credit.

If you are a New York City resident with federal AGI (Form IT-201, line 19) of $30,000 or less, and you have a qualifying child under four years of age as of December 31, 2009, review the instructions for Form IT-216 to see if you qualify to claim the NYC child and dependent care credit.

Transfer the amount from Form IT-216 to Form IT-201, line 64. Attach Form IT-216 to your return.

For more information, see the instructions for Form IT-216.

Line 65 - New York State earned income credit (NYS EIC)

Did you claim the federal earned income credit for 2009 on your federal income tax return?

If No, you do not qualify for this credit. Go to line 66.

If Yes, complete Form IT-215, Claim for Earned Income Credit, and transfer the amount from Form IT-215 to Form IT-201, line 65. 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-201, line 65, and attach Form IT-209 to your return (do not attach Form IT-215). If you are claiming the noncustodial EIC, see line 66 instructions below.

If the IRS is computing your federal earned income credit, write EIC in the box to the left of the money column, and leave the money column blank on line 65. You must complete Form IT-201, lines 67 through 75, but do not complete lines 76 through 80.

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.

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, 2010, whichever is later.

Line 66 - Noncustodial parent New York State earned income credit (EIC)

Review the instructions for Form IT-209 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-201, line 66. If you are claiming the NYS EIC, transfer the NYS EIC from Form IT-209 to Form IT-201, line 65. Attach Form IT-209 to your return (do not attach Form IT-215).

For more information, see the instructions for Form IT-209.

Line 67 - 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-201, line 67. Attach Form IT-214 to your return.

Line 68 - College tuition credit

Did you or your spouse or your dependent(s) pay college tuition expenses during 2009?

If No, you do not qualify for this credit. Go to line 69.

If Yes, and you did not claim the college tuition deduction on line o of the itemized deduction worksheet (see page 75), complete Form IT-272, Claim for College Tuition Credit or Itemized Deduction, and transfer the amount from Form IT-272 to Form IT-201, line 68. Attach Form IT-272 to your return. For more information, see the instructions for Form IT-272.

Line 69 - New York City school tax credit (NYC residents only)

If you are not a New York City resident or part-year resident, you do not qualify to claim this credit. Go to line 70.

If you are a New York City resident or part-year resident and marked the Yes box at item (C) on the front of Form IT-201 indicating that you can be claimed as a dependent on another taxpayer’s federal return, or your income (see page 84) is more than $250,000, you do not qualify for this credit. Go to line 70.

If you are a New York City resident or part-year resident and marked the No box at item (C) on the front of Form IT-201 indicating that you cannot be claimed as a dependent on another taxpayer’s federal return and you are filing status 1, 3, 4, or 5 (and your income (see page 84) is $250,000 or less), determine your credit using Table 1 on page 84 if you were a full-year resident or Table 2 on page 84 if you were a part-year city resident.

If you are filing status 2, determine your credit using Table 1 if both spouses were full-year city residents. If both spouses were part-year city residents, find your part-year NYC school tax credit using filing status 2 and Table 2. If both spouses do not have the same city resident period, determine the credit using the number of months for the spouse with the longer city resident period.

Example 1: You were a 5-month New York City resident and your spouse was an 8-month New York City resident. Your income (see page 84) was less than $250,000, and you marked filing status 2, married filing joint return. You are entitled to a credit of $83.33 (using the 8-month period from Table 2).

Married taxpayers (filing status 3) – If you are computing your NYC tax separately, you must determine your NYC school tax credit using filing status 2. If one spouse is a city resident and the other is a city nonresident for the entire year, and you are computing your NYC tax as married filing separately, then determine the NYC school tax credit for the city resident spouse using Table 1 and filing status 3. The nonresident spouse is not entitled to a credit.

If one spouse is a resident and the other is a nonresident but you elect to compute your NYC tax as if both were residents for the entire year, determine your credit using Table 1 and filing status 2.

If one spouse is a city resident and the other is a part-year city resident, and you are computing your NYC tax as married filing separately, you must compute your credit separately. Use the New York City school tax credit worksheet on page 84 and Table 1, filing status 3, for the resident spouse. Use the worksheet on page 84 and Table 2, filing status 3, for the part-year resident spouse.

Example 2: Full-year resident and a part-year resident spouse - You and your spouse are filing a joint New York State income tax return (filing status 2). You were a resident of New York City for the entire 2009 tax year. Your spouse was a New York City resident for only 3 months during the year, and your income (see page 84) was less than $250,000. Add your credit amount from Table 1 using filing status 3 ($62.50), and your spouse’s credit amount from Table 2 using filing status 3 ($15.63) for a combined credit of $78.13.

If one spouse was a New York City part-year resident and the other spouse was a city nonresident for the entire year, determine the part-year resident’s credit using Table 2 and filing status 3 and enter the result on line 69. The nonresident spouse may not take a credit.

Income, for purposes of determining your New York City school tax credit, means your federal adjusted gross income (FAGI) from Form IT-201, line 18, minus distributions from an individual retirement account and an individual retirement annuity, from Form IT-201, line 9, if they were included in your FAGI.

Line 70 - New York City earned income credit (NYC residents only)

Did you claim the federal earned income credit for 2009 on your federal return?

If No, you do not qualify to claim this credit. Go to line 71.

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-201, line 70. Attach Form IT-215 or Form IT-209 to your return.

For more information, see the instructions for Form IT-215 or Form IT-209.

If the IRS is computing your federal earned income credit, write EIC in the box to the left of the money column, and leave the money column blank on line 70. You must complete Form IT-201, lines 71 through 75, but do not complete lines 76 through 80. 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, 2010, whichever is later.

Line 71 - Other refundable credits

Enter the total amount of other refundable credits from Form IT-201-ATT, Part 1, Section D, line 18. See the credit charts on pages 6 through 9 for a listing of credits that can be refunded.

Lines 72, 73, and 74 - Total New York State, New York City, and Yonkers tax withheld

If you received a federal Form W-2, Wage and Tax Statement, verify that your social security number on your federal Form W-2 is correct. If there is an error, contact your employer to issue you a corrected Form W-2. You must complete Form(s) IT-2, Summary of W-2 Statements, for any federal Form(s) W-2 you received. 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. If you had New York State income tax withheld from your New York State unemployment compensation, you must complete Form IT-1099-UI, Summary of Unemployment Compensation Payments.

Enter on the appropriate line your total New York State, New York City, and Yonkers tax withheld from:

  • Form(s) IT-2,
  • Form(s) IT-1099-R,
  • Form(s) IT-1099-UI, and
  • New York State lottery distributions.

Attach Form(s) IT-2, Form(s) IT-1099-R, and Form(s) IT-1099-UI to page 4 of your Form IT-201. If you had any NYS lottery distributions, attach federal Form W-2G as well. Do not attach federal Form W-2, Form 1099-R, or Form 1099-G to your return. For your records, keep copies of those forms and the forms you attached to your return.

Check your withholding for 2010

If, after completing your 2009 tax return, you want to change the amount of NYS, NYC, or Yonkers tax withheld from your paycheck, complete Form IT-2104, Employee’s Withholding Allowance Certificate, and give it to your employer.

Line 75 - Total estimated tax payments and amount paid with Form IT-370

Enter the total of:

  • Your 2009 estimated income tax payments for New York State, New York City, and Yonkers (include your last installment even if paid in 2010). If you marked filing status  but made separate 2009 estimated income tax payments (Form IT-2105), enter your combined total estimated income tax paid;
  • Any amount of overpayment from your 2008 return that you applied to your 2009 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 (or Form IT-370-V, Payment Voucher for Form IT-370 Filed Online). If you marked filing status 2 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 For Individuals, Estates, and Trusts, directly with the New York City Department of Finance.

You can check your balance and reconcile your estimated 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

If you are a beneficiary of an estate or trust and are claiming your portion of any payment of estimated income taxes allocated to you by the estate or trust, include your amount on line 75 and attach a copy of the notification issued by the estate or trust to the front of your return. This notification must include the name and identifying number of the estate or trust and the amount allocated to you.

Step 9 - Calculate your refund or the amount you owe

Line 77 - Amount overpaid

If you have to pay an estimated income tax penalty (see line 81 instructions), subtract the penalty from the overpayment and enter the net overpayment on line 77.

Your net overpayment can be:

  1. refunded to you (enter amount on line 78);
  2. applied to your 2010 estimated income tax (enter on line 79); or
  3. divided between options 1 and 2.

If your estimated income tax penalty on line 81 is greater than your overpayment on line 77, enter the difference on line 80 (amount you owe).

Line 78 - Your refund

Enter the amount of overpayment that you want refunded to you. Enter your account information on line 82 for a fast and secure direct deposit of your refund (see page 87).

Direct deposit of your refund is not available if the refund would go to an account outside the U.S. (see Note on page 87).

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 governmental education, 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 (518) 457-5434 (in-state callers without free long distance call 1 800 835-3554), or write to: NYS Tax Department, Collections and Civil Enforcement Division, W A Harriman Campus, Albany NY 12227.

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 79 - Estimated tax

Enter the amount of overpayment from line 77 that you want applied to your New York State, New York City, and Yonkers estimated income tax for 2010. The total of lines 78 and 79 should equal the amount on line 77.

If you choose to apply all or part of your overpayment to your 2010 estimated income tax, you generally cannot change that decision after April 15, 2010.

Line 80 - Amount you owe

Enter on line 80 the amount of tax you owe plus any estimated income tax penalty you owe (see line 81 instructions). To avoid other penalties and interest, pay any tax you owe by April 15, 2010.

For additional information on penalties and interest, see Publication 80, General Income Tax Information for New York State Residents.

Line 81 - Estimated tax penalty

Begin with these steps to determine if you may owe an estimated income tax penalty.

  1. Locate the amount of your 2008 New York AGI as shown on your 2008 return;
  2. Locate the amount of your 2008 New York income tax; then
  3. Calculate the amount of your 2009 prepayments (the amount of withholding and estimated tax payments you have already made for 2009).

In general, you are not subject to a penalty if your 2009 prepayments equal at least 100% of your 2008 income tax.

Note: To meet this condition, the tax shown on your 2008 return must be recomputed using the 2009 tax rates and itemized deduction rules.

However:

  • If your 2008 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 2008 income tax based on a 12 month return;
  • You may owe a penalty if line 80 is $300 or more and represents more than 10% of the income tax shown on your 2009 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 81. Also add the same amount to any tax due and enter the total on line 80. 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 77. Do not include any other penalty or interest amounts on line 77. Be sure to attach Form IT-2105.9 to your return.

Payment options

By automatic bank withdrawal

You may authorize the Tax Department to make an electronic funds withdrawal from your bank account.

This payment option is not available if the funds for your payment would come from an account outside the U.S. (see Note on page 87).

File now/Pay later! You must specify a future payment date up to and including April 15, 2010. 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 82 instructions on page 87.

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 2009 Income Tax on it. Do not send cash.

Fee for payments returned by banks

A new law allows the Tax Department to charge a $50 fee when a check, money order, or electronic payment is returned by a bank for nonpayment. However, if an electronic payment is returned as a result of an error by the bank or the department, the department won’t charge the fee.

If your payment is returned, we will send a separate bill for $50 for each return or other tax document associated with the returned payment.

By credit card

You can use your American Express Cards7, Discover7/Novus7, MasterCard7, or Visa7 to pay the amount you owe on your 2009 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.

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.

For additional information on the credit card payment program and the credit card service providers available for your use, go to www.nystax.gov and click 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 80 of Form IT-201). 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. Keep this confirmation number as proof of payment.

Unable to pay?

To avoid interest and penalty charges, you must file and pay the amount due by April 15, 2010.

If you cannot pay in full, you should file your return on time, and pay as much of the tax due as possible by automatic bank 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 86). 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 82 - Account information

Complete line 82. If you marked the box that indicates your payment (or refund) would come from (or go to) an account outside the U.S., stop. Do not complete lines 82a, 82b, or 82c (see Note below). All others, supply the information requested for lines 82a, 82b, and 82c.

Note: New banking rules prohibit us from honoring requests for electronic funds withdrawal or direct deposit when the funds for your payment (or refund) would come from (or go to) an account outside the U.S. Therefore, if you marked this box, you must pay any amount you owe by check, money order, or credit card (see page 86); or if you are requesting a refund, we will send a check to the mailing address on your return.

The following requirements apply to both direct deposit and electronic funds withdrawal:

Enter your bank’s 9-digit routing number on line 82a. 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 82a.

Enter your account number on line 82b. 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 82c, 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 (518) 457-5181. In-state callers without free long distance call 1 800 225-5829. Please allow six to eight weeks for processing you return.

If you do not complete line 82, we will send a check to the mailing address on your return. Paper check refunds might be significantly delayed. Choose direct deposit to avoid this delay.

Refund - Direct deposit

Mark an X in the box for Refund on line 82.

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.

Contact your bank if you need to verify routing and account numbers or confirm 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 82 and enter the date you want the Tax Department to make an electronic funds withdrawal from your bank account. Your confirmation will be your bank statement that includes a NYS Tax Payment line item.

We will only withdraw the amount that you authorize. If we determine that the amount you owe is different from the amount claimed on your return, we will issue you a refund for any amount overpaid or send you a bill for any additional amount owed, which may include penalty and interest.

Contact your bank if you need to verify routing and account numbers or confirm that it will process the withdrawal.

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

Third-party designee

Do you want to authorize a friend, family member, or any other person (third-party designee) to discuss your 2009 tax return with the New York State Tax Department?

If No, mark an X in the No box.

If Yes, mark an X in the Yes box. Print 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, print the preparer’s name and 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 one year after the later of the return due date (including any extension) or the date you filed your 2009 tax return.

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.

Paid preparer’s responsibilities – Under the law, all paid preparers must sign and complete the paid preparer section of the return. Paid preparers may be subject to civil and/or criminal sanctions if they fail to complete this section in full.

When completing this section, you must enter your New York tax preparer registration identification number (NYTPRIN) if you are required to have one. Also, you must enter your federal preparer tax identification number (PTIN) if you have one; if not, you must enter your social security number.

Your signature(s)

In the spaces provided at the bottom of page 4, 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 33.

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 your return to avoid errors that may delay your refund. Finish your return as shown below in Parts 1 through 6.

Part 1

Staple payments, if any, to page 1 of your Form IT-201 where indicated.

Part 2

Staple Form(s) IT-2 (and IT-1099-R, IT-1099-UI, and federal W-2G if applicable) to page 4 of your Form IT-201.

Part 3

Staple any other forms, including Form IT-201-ATT, and any correspondence and computation sheets of paper behind your Form(s) IT-2, IT-1099-R, IT-1099-UI, and/or W-2G face up.

Part 4

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-201, place the cover sheet face up, on the top of the front page of Form IT-201, 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 5

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 6

Note: We no longer provide a preaddressed return envelope.

You must include the following on your envelope:

  • Your return address
  • Enough postage (some returns require additional postage)
  • The appropriate mailing address:
    • If enclosing a payment (check or money order), mail your return to:

      STATE PROCESSING CENTER
      PO BOX 15555
      ALBANY NY 12212-5555

    • If not enclosing a payment, mail your return to:

      STATE PROCESSING CENTER
      PO BOX 61000
      ALBANY NY 12261-0001

Mail your original signed return by April 15, 2010.

If you choose to use a private delivery service instead of the U.S. Postal Service to file your return, see page 35 for the address and additional information.

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.