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TAX WORKSHOP

TAX WORKSHOP. Presented to: NEW YORK STATE NONRESIDENT STUDENTS AND SCHOLARS Spring 2006. Toll Free Tax Information 1-800-225-5829 (foreign language assistance is available). VISIT OUR WEB SITE AT: www.nystax.gov. New York State Income Tax.

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TAX WORKSHOP

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  1. TAX WORKSHOP Presented to: NEW YORK STATE NONRESIDENT STUDENTS AND SCHOLARS Spring 2006

  2. Toll Free Tax Information1-800-225-5829(foreign language assistance is available) VISIT OUR WEB SITE AT: www.nystax.gov

  3. New York State Income Tax • If you did not have income and only need to file Form 8843 to the IRS …… then, you do not need to file a New York State personal income tax return.

  4. Federal Conformity • New York State (NYS) complies with ALL tax treaties that the Internal Revenue Service uses. • Your Federal (IRS) Taxable Income is the starting point in computing your New York State income tax. • New York-Source Income is Taxable Income you received in New York State. Note: If you earned income in any other state in the United States, please consult that state for income tax filing requirements.

  5. New York State Income Tax forNonresident Alien Students & Scholars • Almost all nonresident alien students and scholars are in New York temporarily for a particular purpose and, therefore, are nonresidents for income tax purposes. • However, if you do not have a domicile (a place you intend to return to as your permanent home) outside New York State and you maintained a permanent place of abode (residence) in New York State, you may be required to file other New York State income tax returns.

  6. Do I have to file a New York State IT-203 nonresident income tax return?Yes, if you meet any of the following conditions: • You had New York-source taxable 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 $6,500 if married & filing separate tax returns • You want to claim a refund.

  7. New York State Nonresident Tax Form • Almost all students who file a NYS income tax return will need to file: Form IT-203, “Nonresident and Part-year Resident Income Tax Return”

  8. Form IT-203 Filing Status: Guidelines for Nonresident Aliens • If you checked “single” on your 1040NR-EZ or 1040NR and you are required to file Form IT-203, you MUST check “single” as your filing status on your Form IT-203. • If you checked “married” on your 1040NR-EZ or 1040NR, you must check “married filing separate” as your filing status on your Form IT-203. (“Married filing joint” is not allowed)

  9. Form IT-203 Guidelines • Unlike the IRS tax return, NOPERSONAL EXEMPTION is allowed for you or your spouse on Form IT-203. • You are allowed the SAME amount of DEPENDENT EXEMPTIONSas claimed on your IRS tax return. • Unlike the IRS tax return, you may ALL claim a STANDARD DEDUCTION.

  10. The NYS Standard Deduction Amount • New York State standard deduction amount: $7,500 for single individuals $3,000 if single & can be claimed on another taxpayer’s federal (IRS) return $6,500 if married & filing separate tax returns

  11. Form IT-203 General Guidelines • If any part or your scholarship or fellowship was included as INCOME (for room and board) on your IRS tax return, then enter it on the line for OTHER INCOME on your NYS tax return. • If you included your 2004 State Income tax refund as income on your IRS tax return, you can subtract it on your NYS tax return. • Only enter the taxable income from the IRS tax return onto the NYS tax return, IT-203

  12. Sample W-2 Form 5

  13. What about the State Copy of Form W-2? • If you are filing a NYS tax return, transfer your W-2 information onto NYS Form IT-2. • DO NOT attach a W-2 to your NYS tax return (IT-203). Keep the state copy for your records. • Attach the IT-2 to your IT-203. Note: Obtain Form IT-2 from www.nystax.gov

  14. IT-2

  15. Transfer ALL W-2 Information to Form IT-2 {

  16. You must complete IRS Form 1040NR-EZ or 1040NR before filling out Form IT-203.

  17. Form 1040NR-EZ

  18. Form 1040NR-EZ This column, lines 3-10, is taxable income and transferred to NYS return Line 6 includes $9500 Scholarship and $2000 wages both reported on Form 1042-S

  19. How NYS Nonresidents are Taxed • First, you must compute a base tax on ALL your income as shown on the IRS tax return, NYS federal amount column. • Once you compute the tax, then you must determine how much of your “computed tax” is attributed to NYS sources. • To determine this, you divide your NYS income by your federal income. Then take that quotient (answer) and multiply it by the tax you computed. This is your NYS income tax.

  20. Completing IT-203

  21. Complete Lines 1 through 18. Transfer the amounts from your 1040NR-EZ or 1040NR to the Federal Amount column and income you earned in New York State (New York-source income) to NYS amount column.

  22. Use your Federal Adjusted gross income to determine your NYS adjusted gross income. If you included your state refund for tax year 2004 as income on your 1040NR-EZ or 1040NR, subtract it on line 24 to arrive at NYS taxable income.

  23. Line 39 household credit– see slide on household credit

  24. If you have a dollar amount on line 37 (NYS taxable income) find your income tax in the tables beginning on page 61 of the IT-203 instructions

  25. Who is entitled to a NYS household credit? • Cannot be claimed on another person’s federal tax return • Single and your federal amount income (line 18) is $28,000 or less • Married and federal amount income (line 18) is $32,000 or less • The household credit is NOT refundable. • See page 38 in the IT-203 Instructions booklet for household credit chart

  26. If you DO NOT owe Sales and Use tax, enter a ZERO on line 56. DO NOT leave it Blank.

  27. New York State and LocalSales 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 text books), compact disks, videos, etc.

  28. Sales and Use Tax • 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 40 of the IT-203 Instructions booklet, there are instructions for computing the amount of use tax due on a single purchase of less than $1000. • If the purchase of a single item costs $1000 or more, compute the exact amount of use tax due using the applicable tax rate.

  29. Page 4 of IT-203 – Line 62 is from IT-2 272272

  30. Joy Kim Student 2/22/06 Joy Kim 2/23/05 optional

  31. Mail your New York State tax return by 4/17/06Mail to: State Processing Center PO BOX 61000 Albany, New York 12261-0001

  32. Additional information for discussion Reporting Sales Tax ONLY • If you are not required to file a New York State personal income tax return (IT-203), you may report the amount of sales and use tax on form ST-140. • This form is due 4/17/2006

  33. Income Tax Filing TIPS • Remember to: • Sign your tax return. • Enter your Social Security Number on your tax return. • Complete Form IT-2 from your W-2 information and attach the IT-2.

  34. Thank you for coming! The material included in this presentation is intended for nonresident alien students and scholars in New York State who are in the U.S. on F-1 or J-1 visas. For more information, please refer to NYS Division of Taxation and Finance forms, instructions and publications.

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