New York State Income Tax Workshop Powerpoint

Report
New York State
Department of Taxation and Finance
International Students and Scholars
Spring 2014 Workshop
New York State (NYS) Income Taxes
If you did not have income and only need
to send Form 8843 to the IRS, then ……
you do not need to file a New York State
income tax return.
Filing a NYS Income Tax Return
 You must first determine if you are considered a NYS
resident or NYS nonresident for income tax purposes.
 New York State residency rules differ from those of the
Internal Revenue Service.
 Once you determine your residency status for NYS income
tax purposes, then you must determine if you are required
to file a NYS income tax return.
Student Rules
 All undergraduate full-time students who are pursuing a
degree and whose permanent home is not New York are
considered NYS nonresidents for income tax purposes.
 New: Full-time international graduate students who are
pursing a degree, whose permanent home is not New
York and who are considered nonresidents for federal
income tax purposes (ie. have been in the U.S. for five
years or less) are considered NYS nonresidents for New
York State income tax purposes.
New York State Income Taxes
 The rules for determining NYS residency
status for NYS income tax purposes are
different for
• visiting scholars
• postdoctoral fellows/associates
• international students who have been in the
U.S. longer than five years and are considered
as resident aliens for federal income tax
purposes
New York State Income Taxes
 If you are a visiting scholar, postdoctoral fellow/associate or
international student who has been in the U.S. for longer
than five years and are considered a resident alien for
federal income tax purposes and your domicile (permanent
home) is NOT New York State, but you maintained a
permanent place of abode (on-campus apartment or offcampus apartment or house) for more than eleven months
during the calendar year 2013 AND spent more than 183
days in New York, then you are a NYS resident for income
tax purposes.
 Note: Dormitory rooms are not considered to be permanent
places of abode.
If you are a visiting scholar or postdoctoral associate/fellow, or an international
student who has been in the U.S. for longer than five years and are considered a
resident alien for federal income tax purposes please answer these questions to
determine if you are a NYS resident or nonresident for NYS income tax purposes.
Yes
Did you live in an on-campus apartment or an apartment or
house off campus in NYS during the calendar year 2013?
If yes, did you maintain (rent) it for more than 11 months in
the calendar year 2013?
Did you spend more than 183 days in New York State during
the calendar year 2013?
ONLY if you answered YES to ALL of the above are you
considered a resident for NYS income tax purposes. If you
answered NO to any of the above questions, you are
considered a nonresident for NYS income tax purposes
No
Did you receive a NYS refund in the calendar year 2013?
 If you took an itemized deduction on your federal income tax
return last year for the state and local income taxes you paid
and received an income tax refund from a state or local
government, the Internal Revenue Service requires you to
include the refund amount as income on your federal income tax
return this year.
 If you do not have your income tax records from last year and do
not know if you received a NYS refund, you may call the 1099-G
Hotline at 518-457-5181 and ask a department representative for
that information.
Which Tax Forms Should
I Complete?
Note:
Forms requirements differ for
NYS nonresidents and residents
Which NYS tax forms should I complete?
 If you are a nonresident for NYS income tax purposes and
are required to file an income tax return, you will need to file:
• Form IT-203, “Nonresident and Part-year Resident Income Tax Return”
• Form IT-203-B to report where you live in NYS
• Note: If you received a W-2, attach the state copy to your IT-203 and
IT-203-B
 If you are a resident for NYS income tax purposes and are
required to file an income tax return, you will need to file:
• Form IT-201 Resident Income Tax Return
• Note: If you received a W-2, attach the state copy to your IT-201
Who Must File a NYS
Income Tax Return?
Note:
Filing requirements differ for
NYS residents and nonresidents
If I am a nonresident , do I need to file a
NYS income tax return?
Yes, if you meet any of the following conditions:
 You had New York-source income and your New York
adjusted gross income (Federal amount column line 31 on
Form IT-203) is more than:
$7,700 for single individuals
$3,050 if single & can be claimed as a dependent on
another taxpayer’s federal income tax return
$7,700 if married & filing separate income tax returns
 You want to claim a refund.
If I am a resident, do I need to file a
NYS income tax return?
Yes, if you meet any of the following conditions:
 You are required to file a federal income tax return.
 Your federal income is more than:
$4,000 if single and married
$3,000 if single & can be claimed as a dependent on
another taxpayer’s federal income tax return
 You want to claim a refund or credit.
General NYS Income Tax Filing
Guidelines
NYS Conforms with Internal Revenue Service
 New York State (NYS) complies with ALL tax treaties that
the Internal Revenue Service uses.
 Your Federal (IRS) Adjusted Gross Income is the starting
point in computing your New York State income tax. The
amount you include as income on your federal income tax
return is transferred to your NYS income tax return.
 New York State-source income for nonresidents is your
Federal (IRS) Income that you earned in New York State.
 New York State income for residents is the TOTAL Federal
(IRS) Income that you earned.
Note: If you earned income in any other state in the U.S., please
consult that state for income tax filing requirements.
General Guidelines
 If any part of your New York scholarship or New York
fellowship was included as INCOME on your federal income
tax return, then enter it on the line for OTHER INCOME on
your NYS income tax return.
 If you included the 2012 State income tax refund you
received in 2013 as income on your federal income tax
return, you can subtract this amount on your New York State
income tax return before you begin computing your New
York State income taxes.
Filing Status Guidelines
 If you checked “single” on your federal income tax return and are
required to file a NYS income tax return, you MUST check
“single” as your filing status on your NYS income tax return.
 If you checked “married” on your federal income tax return, you
must check “married” on your NYS income tax return.
 If you are married and filing federal Forms 1040-NR or 1040-NREZ, you must check “married filing separate” as your filing status
on your NYS income tax return.
 NOTE: Special rules apply for same sex married couples.
General Guidelines
 Unlike the federal income tax return, NO PERSONAL
EXEMPTION is allowed for you or your spouse on the
NYS income tax return.
 You are allowed the SAME number of DEPENDENT
EXEMPTIONS as claimed on your federal income tax
return. The New York Dependent Exemption is $1,000.
 Unlike the federal income tax return, EVERYONE filing
a NYS income tax return may claim a New York
STANDARD DEDUCTION.
 You must enter your date of birth on your New York State
income tax return.
General Guidelines
• Foreign financial account information is required on Form
IT-203 or IT-201. You must acknowledge if you have a financial
account located in a foreign country. For those completing a
Form 1040NR or 1040NR-EZ ,check “yes” only if you are
carrying on a trade or business and are required to complete
federal schedule B.
• Whole dollar amounts are required on income tax returns You must enter whole dollar amounts on income tax forms (ie.
no cents).
• Additional account information required on Form IT-201 For direct deposit or electronic funds withdrawal, taxpayers must
designate whether the checking or savings account is a personal
or business account.
NYS 2013 Standard Deduction Amount
Filing Status
Single
Standard Deduction
can be claimed as a dependent on another’s
income tax return
$3,050
cannot be claimed as a dependent on another ‘s
income tax return
$7,700
Married Filing Jointly
$15,400
Married Filing Separately
$7,700
Head of Household
$10,800
Single
with qualifying person
Qualifying Widow(er)
with dependent child
$15,400
New York State and Local Sales and Use Tax
You owe a sales and use tax if:
You purchase property or a service delivered to YOU in
New York State without payment of sales and use tax (Ex.
Internet, catalog purchases).
Most tangible personal property such as clothing, jewelry,
furniture, computers, videos, etc. is subject to New York and
Local Sales tax.
If you do not owe New York State sales and use tax,
enter a ZERO on the sales tax line.
DO NOT leave the line blank.
Who is entitled to a NYS household credit?
Individuals who:
 Cannot be claimed as a dependent on another person’s
federal income tax return AND
 Whose tax filing status and income on the NYS income tax
return (either as a New York resident or nonresident) is:
• Single and federal adjusted gross income is $28,000 or less
• Married and federal adjusted gross income is $32,000 or less
 The household credit is NOT refundable and will only
reduce your NYS tax.
 See IT-201 and IT-203 Instructions booklet for household credit
chart.
How do I Prepare a NYS Nonresident
Income Tax Return?
You must complete your Federal Income Tax Return
before completing your NYS Income Tax Return.
Do NOT include on your NYS Income Tax Return any
income that is exempt because of your country’s treaty
with the U.S. Only transfer the amounts included in
federal adjusted gross income.
Joy Kim is a full-time international student pursing a degree
at the State University of New York. She transferred from
the University of California. She moved to New York from
California on June 30, 2013 and, since then, has lived in an
apartment in New York. She has been in the U.S. for five
years or less and has filed a nonresident (Form 1040NREZ) federal income tax return.
What NYS income tax return does she file?
Because Joy is a full-time international student pursing
a degree and has been in the U.S. for five years or less,
she is considered a nonresident (Form IT-203) for NYS
income tax purposes.
When completing a New York State income tax return, transfer to the NYS income
tax return only the amounts included in federal adjusted gross income.
-----
FORM W-2 – Attach copy to the NYS income tax
return you are filing
XX-XXX-0101
XX-XXX0000
XX-XXX0000
FORM W-2 – Attach copy to the NYS Income tax
return you are filing
XX-XXX-0101
XX-XXX0000
XX-XXX0000
Completing IT-203
Complete Lines 1 through 19. Transfer the amounts from your federal income tax
return to the federal amount column and income you earned in New York State
(New York-source income) to the NYS amount column.
Start with your federal adjusted gross income. Then determine your New York adjusted
gross income. If you included a state refund you received in 2013 as income on your federal
income tax return, subtract it on Line 24 to find your New York adjusted gross income.
__________________________________________________________________________
If you have a dollar amount on line 37 (NYS taxable income), find your
income tax in the Tax Table on page 57 of the IT-203 instructions booklet.
Enter Tax Amount on Line 38
NYS household credit chart for a single person who CANNOT be
claimed as a dependent on another taxpayer’s federal income tax
return – See page 34 of the IT-203 instructions booklet.
Calculating NYS taxes
Line 56 (IT-203) is used to report the amount of sales tax you owe. If you
do not owe sales tax, enter “0” on Line 56.
On page 36 of the IT-203 instructions booklet, there are instructions for
computing the amount of tax due if you owe. If you DO NOT owe Sales
and Use tax, enter a ZERO on Line 56. Do NOT leave Line 56 blank.
Page 4, Line 62 is from your Form W-2, Box 17
(New York State withholding taxes)
Income Tax Refunds
 Three options for refund: direct deposit, paper check or DEBIT CARD
 DEBIT CARDS –a way for individuals to receive their New York State
income state tax refund.
The DEBIT CARD benefits anyone NOT using the direct deposit method
to receive their New York State income tax refund or anyone who enjoys
the security and ease of debit cards for bill pay and making purchases.
For information on the NYS refund debit card visit our website:
www.tax.ny.gov/pit/file/debit_cards.htm
Youtube video also available
Sign and Date NYS Income Tax Return.
Note: You may need to complete Form IT-203B
Joy Kim
Student
3/1/2013
[email protected]
If you maintain living quarters (e.g. home, apartment) in NYS and
are completing Form IT-203, complete section B on Form IT-203-B
and attach it to Form IT-203.
How do I Prepare a NYS Resident
Income Tax Return?
Filing a New York State resident income tax return
 Kumar Dali is a visiting scholar from India. He filed as a
nonresident for federal income tax purposes (Form 1040NR-EZ).
 Kumar Dali moved to Buffalo, New York in August 2012. For the
calendar year 2013, Kumar rented an apartment in Buffalo, New
York He went home to India from May 15, 2013 to August 14,
2013. While he was away, he continued to maintain (rent) his
apartment in New York.
 Is Kumar a resident or nonresident for NYS income tax
purposes?
 Because Kumar maintained a permanent place of abode (an
apartment) for more than 11 months and spent more than 183 days
in New York, he is considered a resident for NYS income tax
purposes.
Kumar is a visiting scholar. Kumar will answer these
questions to determine if he is a NYS resident or
nonresident for NYS income tax purposes.
Yes
Did he live in an on-campus apartment or an apartment or
house off campus in NYS during the calendar year 2013?
X
If yes, did he maintain it (rent) for more than 11 months in
the calendar year 2013?
X
Did he spend more than 183 days in New York State during
the calendar year 2013? (275 days in NY)
X
ONLY if he answered YES to ALL of the above is he
considered a resident for NYS income tax purposes.
Because he answered YES to all three questions, he is a
resident for NYS income tax purposes.
No
Sample Form W-2 from the State of New York
XXX-XX-0000
16-XXXXXXX
Collegetown NY 00000
Kumar Dali
3636 Main St
Buffalo NY 14214
16-XXXXXXX
2013
Completing IT-201: School District NAME and CODES can be found
on page 44 of the IT-201 instructions booklet. (Note: This is generally the
city/town where you reside.)
From page 44 in IT-201 instructions booklet - Kumar lived in
Erie County in Buffalo, New York
 Erie County School District Names and Codes
Transfer the amounts from Form 1040NR-EZ or 1040NR
Line 37 amount to figure NYS taxes – See next slide for Tax Chart
If you have NYS taxable income, find your income tax in the tables on
page 48 of the IT-201 instructions booklet.
Enter tax amount on Line 39.
Line 40 household credit – see chart on next slide
NYS Household Credit chart for a single person who CANNOT be
claimed on another taxpayer’s federal income tax return
Federal AGI (federal adjusted gross income) is the
amount from Form IT-201, Line 19
Sales and Use Tax Line 59 – Do not leave blank
Line 72 – From Form W-2, Box 17
Sign and Date NYS Income Tax Return
Kumar Dali
Visiting scholar
[email protected]
Where to File NYS Income Tax Returns
 If you owe money to NYS, mail your NYS income tax return
with a check or money order to:
• STATE PROCESSING CENTER
• PO BOX 15555
• ALBANY, NY 12212-5555
 If you don’t owe money or expect a refund, mail your NYS
income tax return to:
• STATE PROCESSING CENTER
• PO BOX 61000
• ALBANY, NY 12261-0001
NYS residents who earned income in other states
 If you are a New York State resident for income tax
purposes, your total income, as reported to the IRS on
your federal income tax return, is reported on your NYS
resident income tax return.
 However, if you are required to pay taxes to other states,
you may be entitled to claim a resident tax credit by
completing the other state’s income tax return first and
then completing Form IT-112R, NYS Resident Tax Credit.
 The credit you calculate is entered on Line 41 of Form
IT-201. You must attach Form IT-112R to your IT-201.
 Note: There is a similar resident credit form for taxes paid
to the Provence of Canada, Form IT-112C.
Due Date of NYS Income Tax Return
 Filing due dates for your 2013 NYS Income
Tax Return
• Income tax return: April 15, 2014
• Request for extension of time to file:
April 15, 2014
Income Tax Filing Tips
 Remember to:
• Sign your income tax return.
• Enter your Social Security Number and date of
birth on your income tax return.
• If you received a W-2, attach a copy of the W-2 to
your NYS income tax return.
Free Tax Information
518-457-5181
Foreign Language Assistance
518-453-8137
VISIT OUR WEB SITE
www.tax.ny.gov
QUESTIONS?
THANK YOU
The material included in this slide show is intended only to
highlight NYS tax issues as of the date presented. For more
comprehensive information, please refer to our TSB-M’s,
forms, instructions and publications.

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