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    #1

    Questions for NY state folks

    Searches did not help much - these should be "easy" questions for those of you who practice in the Empire State. Thanks in advance.

    1 - NYSDI shown in box 14 of Form W2. Falls into category of "mandatory contributions" and thus is an additional "state tax" deduction on Schedule A?

    2 - NY "school taxes" are ad valorem and although paid separately are also deductible as "property taxes" on Schedule A? Do they also qualify for inclusion as "real estate taxes" if client uses the increased standard deduction that allows for such?

    3 - Client no longer lives in NY (will file 2009 as part-year resident) but home sale is pending and is unlikely to close by 12/31/09. There may be a taxable event if gain exists, due to not meeting ownership time requirements et al. Is this likely to require filing a non-resident Form IT-203 for tax year 2010?? There will be no other NY source income for 2010.

    4 - At worst for NY I will be filing an amended 2008 return, a part-year resident 2009 return, and a non-resident 2010 return. Currently I have no other NY clients. This means I will have to "register" with NY (after filing the first return or they contact me?) but will NOT have to pay the $100 annual fee?

    See - I told you they were simple questions!

    Thanks again.

    FE
    Tags: None
    #2
    Only Partial Answers

    FEDuke, I can't answer 1-2

    I am going to say on # 3 and home sale - hopefully they will not have a reportable gain - but then I report personal residence on (Sect 121) and do the Exclusion on Schedule D - so maybe you will have to report in year 2010 in New York even if no tax consequences.

    #4 - I am going to say you have to register - once Lion offered me the screen shots, - I finally was able to register I only prepare 2 resident and maybe 1-2 non-resident or part year resident returns per year. Under 10 returns (EA) NO FEE!!!

    Uncle Sam and Bob W should be able to answer # 1 and # 2 for you, so hopefully they are watching the posts.

    Good Luck!

    Sandy

    Comment

      #3
      Searches did not help much - these should be "easy" questions for those of you who practice in the Empire State. Thanks in advance.

      1 - NYSDI shown in box 14 of Form W2. Falls into category of "mandatory contributions" and thus is an additional "state tax" deduction on Schedule A?

      ANSWER: NYSDI is not mandatory> an employer can opt to withhold or not. But if it appears on the w-2 it is deductible. Most software, if entered on the w-2 screen, automatically post it to Sch A taxes, All employers should withhold this tax because> if the employee does collect Disability Insurance not all of it will be taxable income and the employer gets $31.20 per employee per year as an offset to the Disability premiums they pay. It is withheld at the rate of .60 per week.

      2 - NY "school taxes" are ad valorem and although paid separately are also deductible as "property taxes" on Schedule A? Do they also qualify for inclusion as "real estate taxes" if client uses the increased standard deduction that allows for such?

      ANSWER: Yes and Yes

      3 - Client no longer lives in NY (will file 2009 as part-year resident) but home sale is pending and is unlikely to close by 12/31/09. There may be a taxable event if gain exists, due to not meeting ownership time requirements et al. Is this likely to require filing a non-resident Form IT-203 for tax year 2010?? There will be no other NY source income for 2010.

      ANSWER: Taxable in 2010 in NY. You may be able to qualify for a short period ownership for allowed exceptions.

      4 - At worst for NY I will be filing an amended 2008 return, a part-year resident 2009 return, and a non-resident 2010 return. Currently I have no other NY clients. This means I will have to "register" with NY (after filing the first return or they contact me?) but will NOT have to pay the $100 annual fee?

      ANSWER: As I recall, You WILL have to register but you will NOT owe the $100 fee. Your count does not add up to 10 returns in any one year.

      .
      Last edited by BOB W; 12-16-2009, 10:06 PM.
      This post is for discussion purposes only and should be verified with other sources before actual use.

      Many times I post additional info on the post, Click on "message board" for updated content.

      Comment

        #4
        Answers have arrived!

        Bob W & S T -

        My software has a box for "mandatory" SDI payments, and anything entered there automatically transfers to Sch A. The amount IS shown on the W2, so from your explanation I will therefore deduct the amount shown. (The amount is quite small - 0.04% or 0.0004 of taxable wages - does that sound correct??)

        OK on taxes, and OK on home sale. I think the improvements and 2x closing costs will result in overall loss, so the point is perhaps moot. If not, the "time allocation" worksheet will become relevant. Hopefully the client can dodge that bullet!

        As for NY registration, with these facts, file first and wait for NY to contact me? (Are the courts going to get involved in this fee mess?????)

        Thanks for the quick answers.

        FE

        Comment

          #5
          NYS Taxes

          Regarding the W-2 disability insurance premium paid -
          It's calculated on maximum of $ 120 per week x .005 = $ .60 per week.
          It's not a calculation based on the whole gross wages.
          Uncle Sam, CPA, EA. ARA, NTPI Fellow

          Comment

            #6
            NY Reg

            I can only share , that I have already registered, since under 10 returns no Fee to pay to NY, and since I am an EA and not exempt under the current NY regulations, didn't want to "hassle" with it during tax time, and have my clients or myself receive notices.

            Already received the confirmation via email and regular mail from NY

            So for now I am "registered" and "good to go"

            Sandy

            Last edited by S T; 12-16-2009, 11:00 PM. Reason: clarification

            Comment

              #7
              Originally posted by Uncle Sam View Post
              Regarding the W-2 disability insurance premium paid -
              It's calculated on maximum of $ 120 per week x .005 = $ .60 per week.
              It's not a calculation based on the whole gross wages.
              What a memory! It has been so long since I have seen those spreadsheet charts and with computers doing the withholding calculation I had forgoten the $120 weekly cap. Very few people (maybe students and some part timers) earn less than $120 a week now-a-days. If $60 was the gross the disability withheld woud be $.30 for that week.

              Nice reflective post Sam.
              Last edited by BOB W; 12-16-2009, 11:28 PM.
              This post is for discussion purposes only and should be verified with other sources before actual use.

              Many times I post additional info on the post, Click on "message board" for updated content.

              Comment

                #8
                NYSDI tricks

                Originally posted by Uncle Sam View Post
                Regarding the W-2 disability insurance premium paid -
                It's calculated on maximum of $ 120 per week x .005 = $ .60 per week.
                It's not a calculation based on the whole gross wages.
                Wow - thanks for the information - helps tremendously for the source of the $31.20 amount shown on the W2!

                Who comes up with these rules????

                Thanks again!

                FE

                Comment

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