1. International Students and Scholars Spring 2016 Workshop

2. New York State (NYS) Income Taxes If you did not have income and only need to send Form 8843 to the IRS, 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 (IT-201) or NYS nonresident (IT-203) for income tax purposes.  New York State residency rules differ from those of the Internal Revenue Service.

4. Residency Rules for the Following:  International students who have been in the U.S. for less than 5 years and are considered as nonresident alien for federal income tax purposes.  Visiting scholars  Postdoctoral fellows/associates  International students who have been in the U.S. for longer than five years and are considered as resident aliens for federal income tax purposes

5. Residency Rules for Previous Slide You are considered a NYS resident for income tax purposes (IT-201) if:  your domicile (permanent home) is not in NYS but you maintained a permanent place of abode (on-campus apartment, off-campus apartment or house) for more than 11 months and  you spent more than 183 days in NYS.

6.  If you don’t meet the requirements on previous slide you are considered a NYS nonresident (IT-203). Note: dormitory rooms are not considered permanent place of abode.

7. NOTE: Undergraduate Student Rules  Undergraduate students do not follow the New York State Residency Rules in the previous slides.  Full-time undergraduate students who are pursuing a bachelor’s degree and whose permanent home is not New York are considered NYS nonresidents (IT-203) for income tax purposes.

8. Answer for Resident Income Tax Purposes 1 Did you live in an on-campus apartment or an apartment or house off campus in NYS during the calendar year 2015? Y 2 If yes, did you maintain (rent/reside) in a house or an apartment for more than 11 months in the calendar year 2015? N 3 Did you spend more than 183 days in New York State during the calendar year 2015?N If you answered yes to questions 1-3, you are a NYS resident. Proceed to questions 4-6. 4 Did you live in an on-campus apartment or an apartment or house off campus in NYC during the calendar year 2015? 5 If yes, did you maintain (rent/reside) in a house or apartment for more than 11 months in the calendar year 2015? 6 Did you spend more than 183 days in NYC during the calendar year 2015? If you answered yes to questions 4-6 you are a resident of New York City. NOTE: You may be a resident of NYS but not NYC. If you are a resident of NYC you are also a resident of NYS.

9. Fillable PDF Forms are available at www.tax.ny.gov

10. Why Use Fillable PDF Forms?  Automatically complete some line items  Calculate Standard Deduction  Calculates tax due  Adds and subtracts lines

11. Resident and Nonresident Tax Forms

12. Which 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, Nonresident and Part-year Resident Income Allocation and College Tuition Itemized Deduction Worksheet. IT-2, Summary of W-2 Statements.  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 IT-2, Summary of W-2 Statements.

13. Who Must File a NYS Tax Return? Filing requirements differ for New York State residents and nonresidents.

14. Nonresidents Must File if …  They had New York-source income and their New York adjusted gross income* is more than: $7,900 for single individuals $3,100 if single & can be claimed as a dependent on another taxpayer’s federal income tax return $7,900 if married & filing separate income tax returns  They want to claim a refund. *Federal amount column line 31 on Form IT-203

15. Residents Must File if …  They are required to file a federal income tax return.  Their federal income is more than: $4,000 if single or married $3,100 if single & can be claimed as a dependent on another taxpayer’s federal income tax return  You want to claim a refund or credit.

16. NYS 20135 Standard Deduction Filing StatusStandard Deduction Single but claimed as another's dependent$3,100 Single and not claimed as another's dependent$7,900 Married Fling Jointly$15,850 Married Filing Separately$7,900 Head of Household (with qualifying person)$11,100 Qualifying Widow(er) (with dependent child)$15,850 Dependent exemption remains at $1000

17. General NYS Income Tax Filing Guidelines

18. NYS Conforms With the IRS  New York State (NYS) complies with ALL tax treaties that the Internal Revenue Service uses.  Your Federal 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 Income that you earned in New York State.  New York State income for residents is the TOTAL Federal Income that you earned. Note: For income earned in any other state, please consult that state for filing requirements.

19. 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 line 16 for OTHER INCOME on your NYS income tax return.  If you included the 2014 State income tax refund you received in 2015 as income on your federal income tax return (Line 4), you can subtract this amount on your New York State income tax return (Line 25 on Form IT-201 or Line 24 on Form IT-203) before you begin computing your New York State income taxes.

20. 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 filed federal Forms 1040-NR using filing status box 3, 4 or 5 or 1040-NR-EZ using filing status box 2, you must check “married filing separate” as your filing status on your NYS income tax return.

21. General Guidelines General Guidelines  Unlike the federal income tax return, no exemption deduction 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.

22. General Guidelines General Guidelines  Foreign financial account information is required on Form IT-201 or IT-203. 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-201 & IT-203- For direct deposit or electronic funds withdrawal, taxpayers must designate whether the checking or savings account is a personal or business account.

23. 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*.  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. *Example: internet, catalog purchases

24. NYS Household Credit  A taxpayer is entitled to this credit if they cannot be claimed as a dependent on another person’s federal income tax return and their filing status and income is: single and federal AGI is $28,000 or less married and federal AGI 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.

25. Did You Receive a NYS Refund in 2015?  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 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. https://www.tax.ny.gov/pit/file/1099g.htm

26. Federal Form 1040NR-EZ Transfer to Line 1;IT 201 Line 1 IT 203 Transfer to Line 4: IT 201, Line 4; IT 203 Transfer to Line 16;IT 201 Line 16 IT 203

27. Federal Form 1040NR Transfer to Line 16;IT 201 Line 16 IT 203 Transfer to Line 1;IT 201 Line 1 IT 203

28. How do I prepare a New York State Nonresident Income tax Return?

29. You must complete your federal income tax return before completing your New York State income tax return. Do NOT include on your New York State 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.

30. Joy Kim  Full-time international graduate student pursing a degree at State University of New York.  Her domicile is China  She transferred from the University of California.  She moved to NYS on June 30, 2015.  She’s lived in an off campus apartment since her arrival to NYS.  She’s been in the U.S. for five years or less and has filed a nonresident (Form 1040NR-EZ) federal income tax return.

31. Days Joy Kim Spent in NYS  June 30, 2015 1  July, 201531  August 201531  September 201530  October 201531  November 201530  December 201531  Total days spent in NYS for 2015182 days

32. Answer for Resident Income Tax Purposes 1 Did you live in an on-campus apartment or an apartment or house off campus in NYS during the calendar year 2015? Y 2 If yes, did you maintain (rent/reside) in a house or an apartment for more than 11 months in the calendar year 2015? N 3 Did you spend more than 183 days in New York State during the calendar year 2015?N If you answered yes to questions 1-3, you are a NYS resident. Proceed to questions 4-6. 4 Did you live in an on-campus apartment or an apartment or house off campus in NYC during the calendar year 2015? 5 If yes, did you maintain (rent/reside) in a house or apartment for more than 11 months in the calendar year 2015? 6 Did you spend more than 183 days in NYC during the calendar year 2015? If you answered yes to questions 4-6 you are a resident of New York City. NOTE: You may be a resident of NYS but not NYC. If you are a resident of NYC you are also a resident of NYS.

33. What NYS Tax Return Does She File? Because Joy answered yes to only one of the questions (1-3), she is considered a nonresident (Form IT-203) for New York State income tax purposes.

34. Attach Form W-2 to the NYS return you are filing.

36. IT 203  Go to www.tax.ny.govwww.tax.ny.gov  In search engine upper right corner, type in IT 203 Top Recommendations  Nonresident and Part-Year Resident Return http://www.tax.ny.gov/pit/ads/efile_addit203.htm Nonresident and Part-Year Resident Return Not ready to file electronically? (Last item on page)  Continue to Form IT-203, Nonresident and Part-Year Resident Income Tax Return (instructions).Form IT-203instructions Ready to fill in your form?  fill in enhanced form it-203 fill in enhanced form it-203

37. Completing IT-203

38. 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.

39. 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 to find your New York adjusted gross income.

40. If you have a dollar amount on line 37 (NYS taxable income), find your income tax in the tax table on page 48 of the IT-201 instructions booklet.

41. 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 29 of the IT-203 instructions booklet). This credit is based on line 19; IT 203, Federal Column

42. Enter tax amount on line 38 and Household credit on line 39

43. Calculating NYS taxes

44. Line 56 (IT-203) is used to report the amount of sales tax you owe. If you owe no sales tax, enter “0". Instructions for computing the amount of tax due are on page 36 of the IT-203 instructions. Do not leave Line 56 blank.

45. Page 4, line 62 is from your Form W-2, Box 17 (New York State withholding taxes) W-2; Box 17

46. Include Banking Information

47. Income Tax Refunds  Three options for refund: direct deposit, paper check, or debit card  The debit card benefits anyone who is 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

48. Student Joy Kim 3/1/2016 Joy.kim@gmail.com Sign and date your NYS income tax return. Note: You may need to complete Form IT-203B

49. If you maintain living quarters (e.g. home, apartment) in New York State and are completing Form IT-203, complete section B on Form IT-203-B and attach it to Form IT-203.

50. Form IT 203 B  Go to www.tax.ny.govwww.tax.ny.gov  In search engine upper right corner, type in IT 203 B  First item in search results should be Form IT-203-B: 2015:Nonresident and Part-Year Resident...Form IT-203-B: 2015:Nonresident and Part-Year Resident...  Click on this form and you will get a fillable PDF form of IT 203 B.

52. Form IT 2 – Summary of W2  Go to www.tax.ny.govwww.tax.ny.gov  In search engine upper right corner, type in IT 2 form  First item in search results should be  Enhanced Form IT-2, Summary of W-2 Statements Enhanced Form IT-2, Summary of W-2 Statements  Click on this form and you will get a fillable PBF form of IT 2.

53. How do I prepare a New York State resident income tax return?

54. Kumar Dali- Resident or Nonresident?  Kumar is a visiting scholar from India working at State University of New York in Buffalo.  Kumar filed as a nonresident for federal income tax purposes (Form 1040NR-EZ) for 21052015.  For the calendar year of 2015, Kumar rented an off-campus apartment.  Kumar went home to India from May 15, 2015 to August 14, 2015, however he continued to maintain(rent) his apartment in Buffalo, NY.  Is Kumar a resident or nonresident for NYS Income tax purposes?

55. Days Kumar Spent in New York State  January 201531  February 201528  March 201531  April 201530  May 15, 201515  August 15 – 31, 201517  September 201530  October 201531  November 201530  December 201531  Total days in NYS for 2015274

56. Kumar's Answers for Resident Income Tax Purposes 1 Did you live in an on-campus apartment or an apartment or house off campus in NYS during the calendar year 2015? Y 2 If yes, did you maintain (rent/reside) in a house or an apartment for more than 11 months in the calendar year 2015? Y 3 Did you spend more than 183 days in New York State during the calendar year 2015?Y If you answered yes to questions 1-3, you are a NYS resident. Proceed to questions 4-6. 4 Did you live in an on-campus apartment or an apartment or house off campus in NYC during the calendar year 2015? 5 If yes, did you maintain (rent/reside) in a house or apartment for more than 11 months in the calendar year 2015? 6 Did you spend more than 183 days in NYC during the calendar year 2015? If you answered yes to questions 4-6 you are a resident of New York City. NOTE: You may be a resident of NYS but not NYC. If you are a resident of NYC you are also a resident of NYS.

57. Form IT-201  Go to www.tax.ny.govwww.tax.ny.gov  In search engine upper right corner, type in IT 201 Top Recommendations  Resident Income Tax Return http://www.tax.ny.gov/pit/ads/efile_addit201.htm Resident Income Tax Return http://www.tax.ny.gov/pit/ads/efile_addit201.htm Not ready to file electronically? (Last item on page)  Continue to paper Form IT-201, Resident Income Tax Return (instructions).Form IT-201instructions Ready to fill in your form?  Fill in enhanced form IT-201 Fill in enhanced form IT-201

58. Kumar Dali- Resident or Nonresident?  Since Kumar answered yes to Questions 1-3, he is considered a resident of NYS for 2015.  He needs to file an IT-201; NYS Resident income tax return for 2015.

59. Sample NYS Form W-2 Kumar Dali 3636 Main St Buffalo NY 14214 Collegetown NY 00000 XXX-XX-0000 16-XXXXXXX

60. If you are filing a resident return, you must enter your county of residence, school district name, and school district code (found in the IT-201-resident income tax instructions beginning on page 43. * This is generally the city or town where you reside.

61. When to Check Boxes E and F Box E Leave blank if you are a full year New York City resident. All others enter the number of days in New York City. Box F Enter number of months you were in NYC. If you determined you are a New York City resident, enter 12 in the box. We need this information to verify your New York City school tax credit

63. Transfer the amounts from Form 1040-NR EZ or 1040-NR

64. Line 37 amount to figure NYS taxes (see next slide for tax chart).

65. If you show NYS taxable income on line 37, find your income tax in the tax table (page 56 of the IT-203 instructions booklet).

66. Enter tax amount on Line 39 and Household Credit on line 40

67. Line 72 from W2, Box 17

68. Sign and Date NYS Income Tax Return

70. Form IT 2 – summary of W2  Go to www.tax.ny.govwww.tax.ny.gov  In search engine upper right corner, type in IT 2 form  First item in search results should be  Enhanced Form IT-2, Summary of W-2 Statements Enhanced Form IT-2, Summary of W-2 Statements  Click on this form and you will get a fillable PBF form of IT 2.

71. 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 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

72. If You 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.

73. Due Date of NYS Income Tax Return  Income tax return: April 18, 2016  Request for extension of time to file (IT-370) by April 18, 2016 if you cannot timely file. this is an extension of time to file, not an extension to pay

74. Income Tax Filing Tips  Don't forget to sign your income tax return.  Enter your social security number and date of birth on your income tax return.  Complete Form(s) IT-2, Summary of W-2 Statements, for any federal Form(s) W-2 (or W-2c) you receive.  If you owe money include a payment voucher (IT-201-V)

75. Free Tax Information 518-457-5181 Foreign Language Assistance 518-453-8137 Visit Our Website www.tax.ny.gov

76. 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. QUESTIONS?