New York State It-201 Taxslayer Screens and Instructions

NEW YORK STATE IT-201 TAXSLAYER SCREENS AND INSTRUCTIONS

I.State Returns: Add as many states as necessary with the taxpayer’s status: resident, non-resident, or part year resident. For each state, the following headings may apply. For New York State use this manual in conjunction with the TP-300 Quick Reference Desk Guide, which provides more detailed information. Who Must File a NY Return:

A.If required to file a federal return, a NY resident is required to file a NY return:

1.above federal income filing threshold, or

2.self-employment income of $400 or more, or

3.other obscure reasons (4012, page A-3, Chart C)

B.If not required to file federal return, filing required for NY if income above NY filing threshold.

1.NY has a much lower income filing threshold than does federal. AGI (as if taxpayer had filed federal) plus New York additions of more than $4,000 (more than $3,100 if taxpayer could be claimed as a dependent on another taxpayer’s federal tax return)

II.Before We Get Started Section: reminds us of the requirement to efile if possible. No action required.

III.Basic Information Section:

A.First four questions may be answered if applicable.

1. Special Condition Codes: Generally OOS. Take a look at them just to see what they are. There are detailed definitions available by pressing ‘HERE’ in the introductory paragraph.
2. County District Information: Choose from dropdown list
3. School District Information: Choose from dropdown list
4. Permanent Home Address: Complete ONLY if physical address is different from address on the tax return. This will apply to taxpayers who list a PO Box on their tax return but who may be eligible for IT-214 or NYC- 208 Property Tax Credits.
5. Third Party Designee Information: The default is ‘NO’. No need to complete unless “YES”, the taxpayer wants to assign a third party who is authorized to have access to records.
   

IV.New York City and Yonkers Residents Section:

1. This is an important section for part/full year residents of NYC or Yonkers. Complete all information related to being a full year or part year resident of NYC or Yonkers. If the taxpayer moved into or out of NYC at any time during the year Form 360.01 must be completed so that correct NYC taxes are computed. This is the screen on which you indicate that you need this form.
   
2. If there is Yonkers incomeon the W-2 please add $ amount of income, so that TaxSlayer can calculate Yonkers non-resident tax. It doesn’t do so automatically by ‘reading’ the W-2 income entry. It also permits us to determine the Yonkers income based on number of days worked, but we would get that information from the W-2 generally.
   
3. Don’t forget to complete the screen by answering the questions on whether the taxpayer is a resident/nonresident of Yonkers.
   

V.Additions to Income Section: Click ‘HERE’ on this screen to see further definitions.

1. Interest Income on Other States’ Bonds and Obligations. Enter the amount of any federally tax exempt bond that is NOT NY tax exempt (e.g. muni bond for Pennsylvania).
   
2. Non-qualified withdrawals from New York’s 529 college savings program.
   
3. Other Additions: TaxSlayer automatically adds Public Employee retirement contributions (414(h)) and NYC flexible benefits program (IRC 125) if you picked these when completing box 14 on the W-2. Check to see that you did.
   

VI.Subtractions from Income Section: Click ‘HERE’ on this screen to see further definitions

1. NY 529 College Savings Program: Enter Up to $5,000 ($10,000 MFJ) if applied to a NY529 program.
   
2. Certain Pension Income is excluded from New York Taxable income: When you click on this option you are offered two boxes in which to enter excluded amounts. RAILROAD RETIREMENT PENSIONS are NOT included as pensions and are dealt with elsewhere, in Other Subtractions. Please see APPENDIX A for details on how to identify ‘PUBLIC PENSIONS’ and what to enter for ‘PRIVATE PENSIONS’
   [ Note: Several NY volunteers are working on a fillable pdf worksheet that will help preparers calculate the total amount of pension to be entered for subtraction. There are nuances whereby the gross amount of the pension may not be the taxable amount, and this worksheet will assist preparers in setting out the correct amounts. This worksheet is still being tested as of 9/23/16]
   
3. ‘Enter the total Taxable Pensions received from New York State, Local, and Federal governments: ‘PUBLIC PENSIONS’
   
4. Enter other taxable pensions (not included above) received from the time you turned 59 1/2 to the end of the tax year. (Do not enter more than $20,000 per TP.) ‘PRIVATEPENSIONS’
   
5. Other Subtractions: Enter as necessary using the menu items. Most of these are OOS for us. Here are some that may apply
   
6. Long-Term Residential Care Deduction (S-105). If TP was 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 paid during the year that were attributable to the cost of providing long-term care benefits to TP under a continuing care contract. Ssee details/definitions within TaxSlayer for a table showing limitations on amount that can be subtracted.
   
7. Volunteer Firefighter/Ambulance Length of Service Award Program (LOSAP)(S-130). LOSAP payments are ‘pension-like’ payments provided to volunteer firefighters/ambulance workers. These should be subtracted from federal income in this section, not in the pension subtraction section, if TP is at least 59 ½. The form of the LOSAP payment may vary, depending on how it was structured. It may come on a W-2, 1099-R or 1099 MISC. You will have to depend on the TP letting you know that this is a LOSAP. Only periodic payments qualify for this subtraction; lump sum payments do not.
   
8. Railroad Retirement Board Tier 2 Annuities or Pensions (Green Form) These are Non Social Security Equivalent Benefits (NSSEB) and the taxable amount may be subtracted from federal income.
   
9. DO NOT enter subtraction amounts of Social Security or Tier 1 Railroad Social Security Equivalent Benefits (SSEB) (Blue Form), or State Tax Refunds taxed on the federal return, or interest income on US Government bonds/savings bonds. These subtractions will be made automatically by TaxSlayer.
   
10. If you are preparing more than one state return (e.g., a resident state and a non-resident state, you will have to manually subtract any savings bond interest from the non-resident return.
    

VII.Itemized Deductions Section:

1. If the taxpayer is taking the standard deduction on the federal return Continue to Next Step. You must use the Standard Deduction on your New York State Return in this case.
   
2. If the taxpayer itemized federal deductions, you may need to add or subtract certain items below.
   
3. Additions to Federal Itemized Deductions: None apply to our taxpayers.
   
4. Subtractions from Federal Itemized Deductions. Subtract any Long-Term Care Premiums Included on Federal Schedule A, Line 1-Premiums paid for long-term care insurance to the extent deducted in determining federal taxable income. Since NY provides a separate, nonrefundable credit for Long Term Care Premiums they may not be double-counted as itemized deductions as well.
   

VIII.CREDITS Section (mostly Non-Refundable but be aware of refundable credits)

1. Credits Automatically Calculated by TaxSlayer. There are a number of credits that will be automatically calculated based upon income and/or federal entries. You are not required to access a screen or take any action. Access the TP-300 for the detailed requirements if necessary.
   
2. Household Credit: TaxSlayer will calculate automatically if taxpayer qualifies. This is a NONREFUNDABLE credit.
   
3. Empire State Child Credit (IT- 213): Remember the requirements for this credit are different than the federal child tax credit. A qualifying child must be at least 4 years old but less than 17 on December 31st of the tax year and must qualify for the federal child tax credit. This is a REFUNDABLE credit.
   
4. Family Tax Relief Credit (IT-114): Available only to families with dependent children and a state tax bill. If the credit exceeds the tax bill it is REFUNDABLE. It is available for this tax year (2016) and will not be available next year.
   
5. NY and NYC Earned Income Tax Credit (EITC)(IT-215) if qualified for Federal EITC. REFUNDABLE credit
   
6. NY Child & Dependent Care Credit (IT-216): if qualified for the federal credit. REFUNDABLE for full year residents. NYC residents can get additional credits for qualifying expenses for children under 4 years old.
   
7. NYC School Tax Credit (NYC-210). REFUNDABLE credit.
   

1. NY Long Term Care Insurance Credit (IT-249): Enter the amount of Long Term Care Insurance Premium paid. This is a NONREFUNDABLE credit. If unused amounts have been rolled over from prior years enter them, as they may be rolled over from year to year.
   
2. Volunteer Firefighters and Ambulance Workers Credits (IT-245): The credit is $200 ($400 if both spouses qualify) for NY residents who qualify. If their credit is more than the tax they owe, this becomes a REFUNDABLE credit.
   
3. College Tuition Credit (IT-272). Information from the federal form re: student and school should flow automatically. If it doesn’t flow, add it. Add the correct undergraduate tuition amount. This is a REFUNDABLE credit.
   
4. Noncustodial Parent NYS Earned Income Credit (IT-209). If the parent qualifies, enter the requested information. The child’s social security number is not required. This is a REFUNDABLE credit.
   
5. Real Property Tax Credit (IT-214). If the taxpayer qualifies for this REFUNDABLE credit, complete the screen. No need to add over 65 taxpayer data, TaxSlayer uses age data from federal return.
   
6. Credit for Taxes Paid to a Province of Canada. Enter only if not already noted.
   
7. Credit for Taxes Paid to Another State: Enter only if not already noted. If you completed a non-resident state return for another state TaxSlayer will create Form IT-112R automatically. You do not have to enter information to this screen.
   
8. NY Investment Credit (Form IT-212): OOS for Tax Aide. This is a credit available for certain types of investment, employment or barn rehabilitation.
   
9. NY Farmers School Tax Credit (Form IT-217): For taxpayers engaged in the business of farming.
   
10. NYC Enhanced Real Property Credit (Form NYC-208): For NYC taxpayers who qualify.
    
11. Other Refundable Credits: There is a dropdown menu. Credits that may apply to our taxpayers are Claim for Clean Heating Fuel Credit (IT-241) or Claim for Nursing Home Assessment Credit (IT-258). Details of these credits can be found in TP 300 Quick Reference Desk Guide For NY.
    You can choose up to three other refundable credits and show a credit amount for each, but TS has no further detail about these. You’ll have to look for instructions for the particular form mentioned.
    

IX.VOLUNTARY CONTRIBUTIONS Section. If the taxpayer wishes to make voluntary contributions to an authorized fund these contributions can be shown on this screen. Your contribution(s) will reduce your refund or increase your tax payment. If the taxpayer has nothing to report, no need to enter anything to this section

X.SALES OR USE TAX Section. This section is intended to collect sales tax on items purchased, or brought into New York, generally internet sales. If the taxpayer has nothing to report, no need to enter anything to this section (our previous instructions told us to enter ‘zero’, that’s not required).

XI.PAYMENTS Section. Although this section is called payments, it does not show how much tax has been paid. It has three rarely used options:

1. Payment Made With Your Extension: Tax Aide does not do Extensions to file taxes, since we are not open after the filing date. If you had completed the ‘Extensions’ form you would enter the amount of tax to be included with the form.
   
2. Amount of Refund to Your [NEXT YEAR] Return. This is useful to us. When a taxpayer is getting a refund and wishes to have all/part of it applied to the next year’s tax return you will enter that amount her to be applied. It is unlikely that you will know that information while entering data, but you can return to this section if necessary after the refund has been calculated.
   
3. NY 1099-MISC (Miscellaneous Withholding). It is exceedingly rare to see tax withheld on a 1099-MISC. If this situation exists use this section to enter employer and federal, state and city withholding amounts.
   

XII.MISCELLANEOUS FORMS Section. Only ‘A’ is applicable to Tax Aide.

1. Estimated Tax Payments – PRINT VOUCHERS FOR NEXT YEAR: Complete this section if the taxpayer would like vouchers printers of NY, NYC, or Yonkers estimated tax payment. Simply enter the quarterly amount for each quarter. This is form IT-2105.
   
2. Underpayment of Estimated Tax: The Label is incorrect. This section calculates a penalty on underpayment of taxes. Form IT-2105.9. DO NOT COMPLETE. Tax Aide does not calculate penalties for underpayment of taxes. If NY charges a penalty on underpayment they will send the taxpayer a separate bill.
   
3. Other Penalties and Interest/NY Lump Sum Distribution Tax/NYC Lump Sum Distribution Tax: To compute tax due if you used federal Form 4972 to compute your federal tax on a lump-sum distribution from a qualified retirement plan. NY Form IT-230. All OOS for Tax Aide
   

XIII.ADDITIONAL ISSUE CONCERNING NY TAX RETURN SCOPE:

1. Form NYC-1127, Return for Nonresident Employees of the City of New York Hired On Or AFTER January 4, 1973. Employees of NYC who reside outside of NYC must complete an additional return, NYC-1127. This form is OOS for us. We may prepare the NY Tax Return, but the taxpayer will have to complete and submit the NYC-1127 independently. If the taxpayer has withheld or paid any amounts associated with th NYC-1127 return these amounts may be shown for Itemized Deductions on Schedule A, line 21 ‘Unreimbursed Employee Expenses’. The NYC-1127 uses amounts from IT-201 so the taxpayer can complete it after his taxes have been completed.
   

XIV.MORE STATE INFORMATION IN TAXSLAYER

1. Refund (Green) and Taxes Owed (Red) amounts will continuously show at the top of your screen. These will be adjusted as you enter information to TaxSlayer.
   
2. EFILE section is where you will indicate for federal and state returns how refunds will be received or how taxes owed will be paid. If bank account information is required it will be entered to this section too.
   
3. Choose PREVIEW RETURN on the upper right hand corner of the screen to create a pdf to view the NY 201 (or other state forms) return.

APPENDIX A

IDENTIFYING PUBLIC PENSIONS AND PROCEDURES FOR PRIVATE PENSIONS.

• Examples of Payers That Qualify For PUBLIC PENSION EXCLUSION (With Exceptions)

Government / Payer (name may not match exactly)
Federal /

• OFFICE OF PERSONNEL MANAGEMENT
• (uncertain payer of) THRIFT SAVINGS PLAN
• Thrift Savings Plan (TSP) might be Private Pension, see footnote[1]
• DEFENSE FINANCE AND ACCOUNTING SERVICE
  

NY State /

• NEW YORK STATE AND LOCAL EMPLOYEES RETIREMENT SYSTEM
• NEW YORK STATE TEACHERS RETIREMENT SYSTEM
• NEW YORK STATE AND LOCAL POLICE & FIRE RETIREMENT SYSTEM
• JPMORGAN CHASE … LIRR BASE PENSION PLAN
• Other plans, see Appendix I
  

NYC /

• POLICE PENSION FUND
• FIRE DEPARTMENT PENSION FUND
• NYPD/FDNY: If distribution code 3, see Distribution Code 3 below
• TEACHERS RETIREMENT SYSTEM
• EMPLOYEE RETIREMENT SYSTEM
• Addition Plans, see below
  

Additional NYC Plans

(source: NY Pub TP-36). Actual payer names are uncertain. Other public authorities may also have Public Pension plans.

• Metropolitan Transportation Authority (MTA) Police 20-Year Retirement Program;
• Manhattan and Bronx Surface Transit Operating Authority (MABSTOA);
• Long Island Railroad Company (LIRR);
• NYC Teachers’ Retirement IRC 403(b) plan;
• International Union of Operating Engineers Local 891 Annuity Fund (Department of Education of the NYC School District);
• NYC Superior Officers’ Council Annuity Trust Fund;
• NYC Correction Captains’ Association Annuity Fund;
• NYC Detectives’ Endowment Association Annuity Fund;
• City University of New York (CUNY) Civil Service Forum Annuity Fund;
• Sergeants Benevolent Association of the City of New York Annuity Fund; and
• NYC variable supplemental funds (VSF), including:
• Transit Police Officers’ VSF,
• Transit Police Superior Officers’ VSF,
• Housing Police Officers’ VSF,
• Housing Police Superior Officers’ VSF,
• Police Officers’ VSF,
• Police Superior Officers’ VSF,
• Firefighters’ VSF,
• Fire Officers’ VSF,
• Corrections Officers’ VSF,
• Corrections Captain and Above VSF.
  

• Some payers PROBABLY qualify for Public Pension Exclusion, but may be Private Pensions.

Payers That PROBABLY Qualify AsPublic Pensions, But May Be Private Pensions

TIAA-CREF OPTIONAL RETIREMENT PLAN (ORP)
FIDELITY OPTIONAL RETIREMENT PLAN (ORP)
METLIFE OPTIONAL RETIREMENT PLAN (ORP)
VALIC OPTIONAL RETIREMENT PLAN (ORP)
VOYA OPTIONAL RETIREMENT PLAN (ORP)
ING OPTIONAL RETIREMENT PLAN (ORP)

• Ask: “Is the pension from employment at SUNY, CUNY, or NYS Dept. of Education?”
• Note: SUNY/CUNY Research Foundation does not count
• If “Yes” this is a Public Pension
• If “No” this is a Private Pension
  
• TIAA-CREF has said that their 1099-Rs will indicate “Public pension” or “Private pension” But this has not been seen yet.

• Examples of Payers That DO NOT Qualify as Public Pension, but Maybe Look Like They Do. These are Private Pensions,
  

TIAA-CREF (and other payers from table above) SUPPLEMENTAL RETIREMENT ANNUITIES (SRA), GROUP SUPPLEMENTAL RETIREMENT ANNUITIES (GSRA),
any Credit Union or Federal Credit Union, especially:
NASSAU EDUCATORS FEDERAL CREDIT UNION
TEACHERS FEDERAL CREDIT UNION
MUNICIPAL CREDIT UNION
TOWN OF HEMPSTEAD EMPLOYEES FEDERAL CREDIT UNION

PRIVATE PENSION Procedures

• If a 1099-R does not qualify for a PUBLIC PENSION exclusion, then you’ll need to determine the amount of the PRIVATE PENSION exclusion (note some Exceptions below).
  
• ALL IRA’s are considered PRIVATE PENSIONS for this purpose.
  
• Exclusion is up to $20k total from all 1099-Rs for TP, and separate $20k for SP. You may not add up the total pension amount and divide by 2 for a joint return.
  
• Payments must have been made after recipient was age 59 ½ to qualify for the exclusion
  
• A pension from another country, even if it is not shown on a 1099-R, qualifies for the $20K exclusion as though it were a 1099-R pension.

EXCEPTION: 1099-R, distribution code 7 (Normal distribution) “Divorce Exception”