New York State Department of Taxation and Finance. International Students and Scholars Spring 2014 Workshop

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1 New York State Department of Taxation and Finance International Students and Scholars Spring 2014 Workshop

2 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.

3 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.

4 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.

5 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

6 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.

7 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 No 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

8 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 and ask a department representative for that information.

9 Which Tax Forms Should I Complete? Note: Forms requirements differ for NYS nonresidents and residents

10 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

11 Who Must File a NYS Income Tax Return? Note: Filing requirements differ for NYS residents and nonresidents

12 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.

13 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.

14 General NYS Income Tax Filing Guidelines

15 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.

16 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.

17 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-NR- EZ, 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.

18 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.

19 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 For direct deposit or electronic funds withdrawal, taxpayers must designate whether the checking or savings account is a personal or business account.

20 NYS 2013 Standard Deduction Amount Filing Status Single can be claimed as a dependent on another s income tax return Single cannot be claimed as a dependent on another s income tax return Married Filing Jointly Married Filing Separately Head of Household with qualifying person Qualifying Widow(er) with dependent child Standard Deduction $3,050 $7,700 $15,400 $7,700 $10,800 $15,400

21 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.

22 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.

23 How do I Prepare a NYS Nonresident Income Tax Return?

24 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.

25 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 1040NR- EZ) 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.

26 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

27 FORM W-2 Attach copy to the NYS income tax return you are filing XX-XXX0000 XX-XXX-0101 XX-XXX0000

28 FORM W-2 Attach copy to the NYS Income tax return you are filing XX-XXX0000 XX-XXX-0101 XX-XXX0000

29 Completing IT-203

30 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.

31 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.

32 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.

33 Enter Tax Amount on Line 38

34 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.

35 Calculating NYS taxes

36 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.

37 Page 4, Line 62 is from your Form W-2, Box 17 (New York State withholding taxes)

38 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: Youtube video also available

39 Sign and Date NYS Income Tax Return. Note: You may need to complete Form IT-203B Joy Kim Student 3/1/2013

40 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.

41 How do I Prepare a NYS Resident Income Tax Return?

42 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 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, 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.

43 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 No Did he live in an on-campus apartment or an apartment or house off campus in NYS during the calendar year 2013? If yes, did he maintain it (rent) for more than 11 months in the calendar year 2013? Did he spend more than 183 days in New York State during the calendar year 2013? (275 days in NY) X X 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.

44 Sample Form W-2 from the State of New York 16-XXXXXXX XXX-XX-0000 Collegetown NY Kumar Dali 3636 Main St Buffalo NY XXXXXXX 2013

45 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.)

46 From page 44 in IT-201 instructions booklet - Kumar lived in Erie County in Buffalo, New York Erie County School District Names and Codes

47 Transfer the amounts from Form 1040NR-EZ or 1040NR

48 Line 37 amount to figure NYS taxes See next slide for Tax Chart

49 If you have NYS taxable income, find your income tax in the tables on page 48 of the IT-201 instructions booklet.

50 Enter tax amount on Line 39. Line 40 household credit see chart on next slide

51 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

52 Sales and Use Tax Line 59 Do not leave blank

53 Line 72 From Form W-2, Box 17

54 Sign and Date NYS Income Tax Return Kumar Dali Visiting scholar

55 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 ALBANY, NY If you don t owe money or expect a refund, mail your NYS income tax return to: STATE PROCESSING CENTER PO BOX ALBANY, NY

56 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.

57 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

58 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.

59 Free Tax Information Foreign Language Assistance VISIT OUR WEB SITE

60 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.