New York State Department of Taxation and Finance International Students and Scholars Spring 2015 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 a NYS nonresident for income tax purposes. New York State residency rules differ from those of the Internal Revenue Service. New York State Income Tax Who is a resident? If your domicile (permanent home) is NOT in New York State, but you maintained a permanent place of abode (on-campus apartment or off-campus apartment or house) for more than eleven months during the calendar year 2014 AND spent more than 183 days in New York, you are a NYS resident for income tax purposes. New York State Tax Department is currently in the process of updating our regulations (rules) for fulltime students pursuing a degree. Student Rules Full Time Students: A place of abode is not deemed permanent if it is maintained by a full-time student solely for the particular purpose of obtaining a baccalaureate, master’s, doctorate or professional degree at an institution of higher education. Therefore, full time students whose permanent home is NOT New York State will be considered NYS nonresidents for income purposes. If you are not a full-time student, you may be a resident for NYS income tax purposes. Did you receive a NYS refund in the calendar year 2014? If you took an itemized deduction on your federal income tax return last year for 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 (IRS) 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 file? Full time students whose permanent home is not New York State and who are in New York State to obtain a degree are nonresidents for NYS income tax purposes. If required to file an income tax return, they 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 • If you received a W-2, attach the state copy to your IT-203 and IT-203-B Who Must File a NYS Nonresident Income Tax Return? You must file a NYS nonresident income tax return if you meet 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: $7,800 for single individuals $3,100 if single & can be claimed as a dependent on another taxpayer’s federal income tax return $7,800 if married & filing separate income tax returns You want to claim a refund. 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. 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 or 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 2013 State income tax refund you received in 2014 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 1040NR-EZ, you must check “married filing separate” as your filing status on your NYS income tax return. 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. 2014 Standard Deduction and Exemptions Filing Status Standard Deduction Single $3,100 can be claimed on another's income tax return Single cannot be claimed on another's income tax return $7,800 Married Filing Jointly $15,650 Married Filing Separately $7,800 Head of Household $10,950 with qualifying person Qualifying Widow(er) with dependent child Dependent exemption remains at $1000 $15,650 General Guidelines • Foreign financial account information - 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 required on income tax forms -You must enter whole dollar amounts on income tax forms (ie. no cents). • Attach income statements to the New York return only if there is NY state income taxes withheld New York State and Local Sales and Use Tax You owe a sales and use tax if: You purchased 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-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, 2014 and, since then, has lived in an apartment in New York State. She has been in the U.S. for five years or less and has filed a nonresident (1040NR-EZ) federal income tax return before. What NYS income tax return does she file? Because Joy is a full-time student who is pursing a degree and whose permanent home is not in New York State, she will be considered a nonresident for NYS income tax purposes. Therefore, she will file Form IT-203. When completing a New York State income tax return, you will transfer to the NYS income tax return only the amounts included in federal adjusted gross income. FORM W-2 – Must attach a copy to your NYS Income Tax return only if NYS taxes were withheld. xxx-xx-0101 xx-xxx0000 xx-xxx0000 FORM W-2 – Must attach a copy to your NYS Income Tax return only if NYS taxes were withheld. xxx-xx-0101 xx-xxx0000 xx-xxx0000 Information from Form 1042-S – Treaty exempt amounts do not appear on the NYS income tax return xx-xxx6789 xxx-xx-0101 Information from Form 1042-S – Treaty exempt amounts do not appear on the NYS income tax return xx-xxx6789 xxx-xx-0101 Completing IT-203 – Skip questions D2, E, F and G 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 2014 as income on your federal income tax return, subtract it on Line 24 as this is not considered income by New York State. __________________________________________________________________________ Line 38 NYS taxes–See next slide for Household Credit Table Joy Kim If you have a dollar amount on line 37 (NYS taxable income), find your income tax in the Tax Table on page 51 of the IT-203 instructions booklet. Line 38 NYS taxes–See next slide for Household Credit Table Joy Kim 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 27 of the IT-203 instructions booklet. Line 56 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 if you owe any tax 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 3/1/2015 [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. Where to File NYS Income Tax Return If you owe money to NYS, mail your NYS income tax return with a check or money order and include a voucher, Form IT-201 (payment voucher for income tax return) and mail 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 Due Date of NYS Income Tax Return Filing due dates for your 2014 NYS Income Tax Return • Income tax return: April 15, 2015 • Request for extension of time to file: April 15, 2015. 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 state copy or the W-2 to your NYS personal income tax return. • If you owe money, include a payment voucher Form IT-201-V with the 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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