New York State Department of Taxation and Finance Resident Alien International Students and Scholars Spring 2010 Workshop
Please Note: The PowerPoint presentation, handout and a webcast of this presentation are available at www.buffalo.edu/intlservices/tax4.html
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. Therefore, you may be considered a resident alien for federal (IRS) income tax purposes and still be considered a nonresident for NYS income tax purposes or vice versa. • 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.
CHANGES IN 2009 • In 2009, New York State regulations changed for undergraduate students regarding whether they are residents or nonresidents for NYS income tax purposes. • Undergraduate full-time students, whose permanent home is not New York, would be considered NYS nonresidents for income tax purposes. • Note: If you are an undergraduate and filed a NYS income tax return for tax year 2008, you may be required to complete a different NYS income tax form for tax year 2009.
If you are not a full-time undergraduate student,you are a resident if the following statement is true. • Your permanent home is in your home country, but you maintained an on-campus apartment or off-campus apartment/house for more than eleven months in 2009 AND spent more than 183 days in New York. Therefore, since you are not a full-time undergraduate, you will file as a New York resident if you are required to file a NYS income tax return.
If you are NOT a full-time undergraduate student, answering these questions will help determine whether or not you are a NYS resident for NYS income tax purposes.
CHANGES IN 2009 • This year, the New York State Department of Taxation and Finance will not mail Form 1099-G, which reports to you the amount of the tax refund you received in 2009 from the State of New York. You may obtain that information by calling the 1099-G Hotline at 518-485-0799 or 866-698-2946 (free phone call) and speaking with a department representative. • Note: If you took an itemized deduction on your federal income tax return for state and local income taxes and received an income tax refund from the state, the Internal Revenue Service will require you to include the refund amount as income on your federal (IRS) income tax return.
Who Must File a NYSIncome 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 incomeand your New York adjusted gross income (Federal amount column) is more than: $7,500 for single individuals $3,000 if single & can be claimed on another taxpayer’s IRS tax return $7,500 if married & filing separate 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 (IRS) income tax return. • If your federal income is more than: $4,000 for single and married $3,000 if single & can be claimed on another taxpayer’s IRS tax return • You want to claim a refund or credit
New York State Tax Filing Status • In most cases, the taxpayer must use the same filing status on the New York State income tax return that was used on the federal (IRS) income tax return. • EXCEPTIONS: • Married taxpayer filing a federal (IRS) joint income tax return when: • One spouse is a NYS resident and the other spouse is a non-residentor part-year resident of NYS. In that case, you would either: 1) file a joint NYS income tax return as if you were both NYS residents OR 2) file separate NYS income tax returns and check the box for “married filing separate”.
New York State 2009 Exemptions • Dependent Exemption: $1000 • New York State Personal Exemptions for the taxpayer and spouse are NOT allowed.
Filing Status Standard Deduction Single can be claimed on another person’s income tax return $3,000 Single cannot be claimed on another person‘s income tax return $7,500 Married Filing Jointly $15,000 Married Filing Separately $7,500 Head of Household with qualifying person $10,500 Qualifying Widow(er) with dependent child $15,000 NYS 2009 Standard Deduction Amount
General Guidelines • If any part or your scholarship or fellowship was included as INCOME (for room and board) on your federal (IRS) income tax return, then enter it on the line for OTHER INCOME on your NYS income tax return. • If you included your 2008 State income tax refund as income on your federal (IRS) income tax return, you can subtract it on your NYS income tax return. • Only enter the income reported on your federal (IRS) income tax return onto the NYS income tax return.
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 is subject to New York and Local Sales tax. Examples: clothing, jewelry, electronic equipment, furniture, prewritten software, books (excluding textbooks), compact disks, videos, etc. IF YOU DO NOT OWE NYS SALES TAX, ENTER A ZERO IN THE SALES TAX LINE. DO NOT LEAVE THE LINE BLANK.
Who is entitled to a NYS household credit? Individuals who: • Cannot be claimed on another person’s federal (IRS) income tax return AND • Whose tax filing status and income on the NYS income tax return are: • Single and his/her federal adjusted gross income is $28,000 or less • Married and his/her federal adjusted gross income is $32,000 or less
Who is entitled to a NYS household credit? (cont.) • The household credit is NOT refundable and will only reduce your New York State tax. • See Instructions booklet for household credit chart. • Page 39 in IT-203 instruction booklet • Page 22 in IT-150/IT-201 instruction booklet
Which Tax Forms ShouldI Complete? Note: Forms requirements differ for NYS residents and nonresidents
Which NYS tax forms should I file? • 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, and • Form IT-2 for wages (if W-2 received) • 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-150 “Resident Income Tax Return (short form)” or IT-201 in limited cases, and • Form IT-2 for wages (if W-2 received)
How do I Prepare a NYS Resident Income Tax Return? We will use the example from the IRS Income Tax Workshop.
W-2 from the State of New York Collegetown NY 00000 Kumar Dali 123 University Lane Collegetown NY 00000 2009
What do I do with the state copy of the W-2? • If you are filing a NYS income tax return and have a W-2(s), transfer your W-2 information onto NYS Form IT-2. • DO NOT attach a W-2 to your NYS income tax return (either the IT-203 or IT-150 or IT-201). Keep the state copy for your records. • DO NOT forget to complete the NYS withholding information on the IT-2. • Attach the IT-2 to your NYS income tax return (either the IT-203 or IT-150 or IT-201). Note: Obtain Form IT-2 from www.nystax.gov
NYS Conforms with Internal Revenue Service • Your Federal Adjusted Gross Income (from Form 1040-EZ, 1040-A or 1040) is the starting point in computing your NYS personal income tax return. • NYS Source Income for nonresidents is the Federal Income you reported to the IRS that was received in New York State. • NYS Income for residents is the TOTAL Federal Income you reported to the IRS. Note: If you earned income in any other state in the U.S., please consult that state for income tax filing requirements.
You must complete federal (IRS) Form 1040-EZ, 1040-A or 1040 before filling out your NYS Income Tax Return
Whether you are completing a NYS nonresident or resident income tax return, you will transfer the income amounts from the Form 1040-EZ to your NYS income tax return.
Completing IT-150– Kumar, a graduate student, lives in an apartment in New York and maintained it for all of calendar year 2009.
If you have NYS taxable income, find your income tax in the tables in the instruction booklet beginning on page 41.
NYS Household Credit chart for a single person who CANNOT be claimed on another taxpayer’s federal income tax return
Sign and Date NYS Income Tax Return Kumar Dali graduate student 3/06/10
Where to File PAPER Income Tax Returns New Mailing Address • If enclosing a payment (check or money order), mail your NYS income tax return to: • STATE PROCESSING CENTER • PO BOX 15555 • ALBANY, NY 12212-5555 • If not enclosing a payment, 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 2009 NYS Income Tax Return • Income tax return: April 15, 2010 • Request for extension of time to file: April 15, 2010
Extensions • Form IT-370 will extend the due date for 6 months • You may e-file extensions using your e-file software or directly on our website. • You can file Form IT-370 on-line on @ www.nystax.gov. Payment options for our on-line extension include ACH debit, credit card and checks. • No signature requirement if no tax due.
Credits Available to Residents • While many credit are limited to NYS residents, there are NYS Credits you may be eligible for if you are filing a federal (IRS) resident Income Tax Return (Form 1040-EZ,1040-A or 1040) • Form IT-215 – Earned income Tax credit (30% of federal credit claimed minus household credit ) • Form IT-216 – Child Care and Dependent Credit (110% to 20% of federal credit claimed ) • For a completed list of NYS credits, see Publication 99IND - General Information on New York State and New York City Income Tax Credits for Individuals
E-filing your NYS Income Tax Return • NYS has free e-filing for certain NYS resident aliens filing a federal (IRS) Form 1040-EZ, 1040-A or 1040. • Visit our website to determine if you are eligible for free e-filing:www.tax.state.ny.us/elf/free_efile_info.htm • If you qualify, you can free e-file your IRS income tax return and your NYS income tax return from the NYS tax website.
Nonresidents of NYS • There are detailed instructions for completing a NYS nonresident income tax return on theISSS website. • www.buffalo.edu/intlservices/tax2.html
Income Tax Filing TIPS • Remember to: • Sign your NYS income tax return. • Enter your Social Security Number on your income tax return. • Complete Form IT-2 from your W-2 information and attach the IT-2.
Toll Free Tax Information1-800-225-5829(foreign language assistance is available) VISIT OUR WEB SITE www.nystax.gov
Thank you for coming! For more information, please refer to NYS Division of Taxation and Finance forms, instructions and publications.