1. Mwisa Chisunka Senior Tax Analyst Mwisa_chisunka@tax.state.ny.us www.nystax.gov 2010 Instructor Training November 10, 2010

2. Private and Confidential  In accordance with Internal Revenue Service  In accordance with Internal Revenue Service Taxpayers utilizing volunteer program services provide personal information to the volunteers, such as names, addresses, social security numbers, birth dates, and bank account information.   Therefore, partners and volunteers must keep the information confidential and protect it from unauthorized individuals and misuse.

3. NYS Tax Contact Information  Tax Practitioners Hot Line:  Tax Practitioners Hot Line: (518) 457-5451  Forms Control Unit phone number: (518) 244-1911 TP-3 Forms Order (Can order TP-300 and TP-301)  E-file Helpdesk line: (518) 457-6387  Online Tax Center Assistance: (518) 485-7884  Child Support Helpline: (888) 208-4485 (request review if noncustodial EITC is denied)  1099-G: (518) 485-0799l  www.nystax.gov

4. Resources Available for Volunteers TP-301 NYS Intake Sheet TP-301 NYS Intake Sheet YouTube videos YouTube videos Narrative PowerPoint - AARP access only Narrative PowerPoint - AARP access only Addendum to the IRS publication 4491-W (comprehensive problems and exercise book) Addendum to the IRS publication 4491-W (comprehensive problems and exercise book)  TP -300 Quick Reference Guide  Publication 80 – General Information for NYS residents   Publication 310NY – NYS Earned Income Tax Credit  Pub10-W-FAQ’s -College Tuition Credit or Itemized Deduction

5. Resources Available for Volunteers  Publication 94 – Should I be Paying Estimated taxes  Publication 84- Handbook for e-filers of 2009 PIT Returns.  Publication 84- Handbook for e-filers of 2009 PIT Returns.  Publication 99IND-NYS/NYC Income tax credits for Individuals  Publication 22 -  Publication 22 - FAQS: NYS Real Property Tax Credit For Homeowners and Renters  Publication 36 - General Information for Senior Citizens and Retired Persons  Publication 38 – Your Rights as a Taxpayer  Publication 46 - Common Reasons for Income Tax Adjustments  Publication 140-W-FAQs: New York State Lottery Winners -

6. Review of 2009 – Most Common Errors  Amount of public employee 414(h) retirement contribution, subject to NYS tax, reported on return not equal to amount reported on Form(s) W-2. (Reject Code 0103)  Withholding (NY State, NY City, or Yonkers) should not be greater than or equal to wages. (code 502)  Withholding (NY State, NY City, or Yonkers) should not be greater than or equal to wages. (code 502)  Required information missing for qualifying person reported on Form IT-216. (code 376)  Required information missing for qualifying person reported on Form IT-216. (code 376)  NYS wages should not be equal to zero when W-2 shows NY wages. (code 100)  NYS wages should not be equal to zero when W-2 shows NY wages. (code 100)  Amount of NYS withholding reported on return not equal to amount reported on wage and tax statements. (code 129)   NY City withholding entered on W-2 not equal to amount on the return, or NY City withholding on W-2 not carried to NY City withholding claimed on the return, but the W-2 does not have NY City withholding. (code 130)

7. Review of 2009 – Most Common Errors  NYS wages cannot be more than federal wages. (code 98)  NYS wages cannot be more than federal wages. (code 98)  Amount of wages, tips and other compensation reported on return less than amount reported on Form(s) W-2 and/or 1099-R. (code 101)  Amount of wages, tips and other compensation reported on return less than amount reported on Form(s) W-2 and/or 1099-R. (code 101)  A computational error occurred in calculating the NYS Adjusted Gross Income on return. (code 105)  A computational error occurred in calculating the NYS Adjusted Gross Income on return. (code 105)  Negative amount not allowed for these lines. (code 99)  Negative amount not allowed for these lines. (code 99)  The return was rejected due to an inappropriate city tax computation; full- year residency for NYC or Yonkers not properly indicated. (code 110)  The return was rejected due to an inappropriate city tax computation; full- year residency for NYC or Yonkers not properly indicated. (code 110)  One Child’s Social Security Number cannot be the same as another child’s. (code 650)

8. Site Reviews  The New York State Department of Taxation and Finance: Conducted 62 statewide site reviews - (33 sites downstate, 29 sites upstate). Three of the sites were closed (2 sites downstate, 1 site upstate).Conducted 62 statewide site reviews - (33 sites downstate, 29 sites upstate). Three of the sites were closed (2 sites downstate, 1 site upstate).  Reviews was conducted to determine: whether the sites had NYS tax law training,whether the sites had NYS tax law training, whether the sites utilized the NYS Intake Sheet,whether the sites utilized the NYS Intake Sheet, whether the site utilized the TP-3 order form, andwhether the site utilized the TP-3 order form, and whether the site was E-file, Paper or E-file/Paper whether the site had a quality review process (utilizing IRS criteria).whether the site was E-file, Paper or E-file/Paper whether the site had a quality review process (utilizing IRS criteria).

9. Site Reviews  Special Training Needs or Recommendations from volunteers: Training: –IT 214 –Pensions ( Q and A on Pensions for senior sites ) –414 H –More Credit Training –Resident tax credit and nonresident training for sites located near bordering states Recommendations:Recommendations: –NYS general brochure or guidelines on the non custodial EITC –phone number for denial of noncustodial EITC added in the TP-300 –IT-245 (firefighter credit) added to the taxwise tree –Taxpayer Advocate Number added to TP-300 –IT-2105 estimated taxes added to taxwise –Increase the amount for NYS filing requirement

10. Changes for 2010 Training   Department will create a URL for volunteers to view the power point and pertinent updates   Order number of instructions needed for your site on form TP-3   NYS will provide training: Basic/ Intermediate (include basic credits, itemized deductions and Taxwise updates) Advanced (in addition to information covered in intermediate will cover nonresident issues and resident tax credit issues) Military (only to those trained in IRS military training) Nonresident aliens (to scholars and students in conjunction with IRS training)

11. Changes for 2010 Training   Department will provide an addendum to the Federal Publication 4491W for NYS training for E-file users.   Addendum will consist of: an intake sheet (TP-301) completed answer sheet listing various lines on the NYS income tax returns for e- filing.

12. WHAT’S NEW FOR 2010?

13. What’s New for 2010  Registration Requirements for Tax Return Preparers and Facilitators  New York Itemized Deduction Limitation Change  Increase in New York City Income Taxes  New Contribution Lines  New York City Personal Income Tax STAR Rate Reduction  Limitation on the Basic STAR Exemption  State and Local Sales Tax Deduction Add Back  Build America Bonds Interest  Automatic 90 Day Extension for Certain Taxpayers   Due Date of the 2010 Personal Income Tax Return   Historic Homeownership Rehabilitation Credit  Rehabilitation of Historic Properties Credit

14. Requirements for Tax Return Preparer and Facilitators   Certain tax return preparers and facilitators of RALS have to register with the NYS Department of Taxation and Finance (volunteers NOT included in definition of tax return preparer).  Task Force that is examining the need for additional oversight of tax return preparers.  The Department created a Task Force that is examining the need for additional oversight of tax return preparers.  Following the federal model individual upload only  Registrants- access and update registration data on-line  Data capture of the NY registration number is expanded from only PIT currently to also include Corp and Sales tax returns

15. New Contribution Lines   Volunteer Firefighting and Volunteer Emergency Services Recruitment and Retention Fund Line 36 on IT-150 Line 60 on IT-201 Line 57 on IT-203

16. State and Local Sales Tax Add Back  Provides for an add back of the federal itemized deduction for state and local sales taxes paid  These rules are currently applicable to state and local income taxes on/after January 1, 2010

17. Automatic 90 Day Extension for Certain Taxpayers   If your spouse died within 30 days before your return is due, you qualify for an automatic 90-day extension to file your return. (Chapter 429 – A7162B/S5789A)  Enter code D9 if you qualify for an automatic extension of time to file because of the death of your spouse.

18. Due Date of the 2010 Personal Income Tax Return  Friday April 15th is Emancipation Day in Washington D.C. so the deadline for filing a personal income tax return has been extended.  Friday April 15th is Emancipation Day in Washington D.C. so the deadline for filing a personal income tax return has been extended.  NYS will conform with the IRS and the personal income tax return will be due April 18, 2011

19. Filing a NYS Personal Income Tax Return

20. 2010 NYS Filing Requirements  You must file a New York State Return if you are required to file a federal return  You did not have to file a federal return but if you had, your federal adjusted gross income plus NYS additions would have been $4000 or more ($3000 or more if you can be claimed on another’s person federal tax return)  You want to claim a refund (or a credit)

21. 2010 Exemptions  Dependent Exemption $1000  No New York State Personal Exemption for the taxpayer and spouse allowed

22. 2010 Standard Deduction Single can be claimed on another's tax return Single cannot be claimed on another's tax return Married Filing Jointly Married Filing Separately Head of Household with qualifying person Qualifying Widow(er) with dependent child Filing Status $3,000 $7,500 $15,000 $10,500 $15,000 $7,500 Standard Deduction

23. Addition Adjustments to Federal Income  Public Employee 414(h) retirement contributions  Interest on state and local bonds other than from New York State  New York’s 529 College Savings program Transfer to another state’s programTransfer to another state’s program Non qualified distributionsNon qualified distributions

24. Subtraction Adjustments to Federal Income  Income tax refund included in federal income  Interest on US Government Bonds  New York’s 529 College Savings Program  Pensions of New York State and Local Governments and the Federal Government  Pension exclusions (reached age 59 & ½)  Social Security Income included in federal income  Interest on NYHELP paid after July 1, 2009 (s-19)

25. IT- 272 Claim For College Tuition Credit  For Qualified college tuition expenses which includes ONLY tuition required for the enrollment or attendance of the eligible student at an institution of higher education. Up to 10,000 per eligible studentUp to 10,000 per eligible student 4% refundable credit or amount as an added itemized deduction4% refundable credit or amount as an added itemized deduction For tuition expense under $5000, the credit is the lesser of $200.00 or the Tuition expense.For tuition expense under $5000, the credit is the lesser of $200.00 or the Tuition expense.  Expenses may be paid by cash, check, credit card, or with borrowed funds.  The eligible student does not need to be enrolled in a degree program or to attend full time for the expenses to qualify.  If you claim the student as a dependent, these payments are treated as paid by you.

26. IT-213 Empire State Child Credit   Refundable for qualifying children ages 4-16   Resident taxpayers may claim a credit equal to the greater of a) $100 times the number of children who qualify for the Federal child tax credit, or b) 33 percent of the taxpayer’s allowed Federal child tax credit.   If the child is claimed on someone else’s return you are not eligible for the Empire State Child Tax Credit

27. IT- 216 Child Care & Dependent Credit   The New York State child and dependent are credit is a minimum of 20% and as much as 110% of the federal credit, depending on the amount of your NY adjusted gross income.   If you qualify to claim the federal child and dependent care credit, you can claim the New York State credit (whether you actually claim the federal credit or not).   NYS Child Care and Dependent Credit is fully refundable

28. IT- 215 Earned Income Tax Credit IT- 215 Earned Income Tax Credit   You must claim the federal earned income credit for tax year 2009  30% of the Federal Credit (additional 5% for NYC residents)   NYS will conform with IRS increased amounts and increased dependent exemptions   New York State earned income credit must be reduced by the amount of any household credit you are allowed.

29. IT -209 Noncustodial Parent Earned Income Credit  You may claim the noncustodial EIC only if you meet all of the following conditions for tax year 2009: You must be a full-year New York State resident and at least 18 years of age,You must be a full-year New York State resident and at least 18 years of age, Must be a parent of a minor child(ren) with whom you do not reside,Must be a parent of a minor child(ren) with whom you do not reside, Must have an order in effect for at least one-half of the tax year requiring you to make child support payments payable through a Support Collection Unit (SCU) pursuant to Social Services Law section 111(h), and have paid an amount in child support in 2009 at least equal to the amount of current child support you were required to pay by all court orders.Must have an order in effect for at least one-half of the tax year requiring you to make child support payments payable through a Support Collection Unit (SCU) pursuant to Social Services Law section 111(h), and have paid an amount in child support in 2009 at least equal to the amount of current child support you were required to pay by all court orders.

30. IT -209 Noncustodial Parent Earned Income Credit  The amount of credit is equal to the greater of: 20% of the federal EIC that would have been allowed if the noncustodial child met the definition of having one qualifying child, OR 20% of the federal EIC that would have been allowed if the noncustodial child met the definition of having one qualifying child, OR 2.5 times the federal EIC that would have been allowed if you had satisfied the eligibility requirements, computed as if you had no qualifying children. 2.5 times the federal EIC that would have been allowed if you had satisfied the eligibility requirements, computed as if you had no qualifying children.  If the amount of the credit is greater than your tax liability, the excess may be refunded without interest.  If the credit is denied the taxpayer may request a review by calling the Child Support Helpline (CSH) at 1 888 208 4485. The CSH will send you a form to complete and return to the appropriate SCU for the review.

31. IT-245 Claim For Volunteer Firefighter and Ambulance Worker Credit  A $200 refundable credit or $400 if married filing joint and both spouses qualify Full year residentFull year resident Active volunteer firefighters or ambulance workers for the entire year for which the credit is claimedActive volunteer firefighters or ambulance workers for the entire year for which the credit is claimed Must use IT-201-ATT therefore filing IT-201 use code 354 on Form IT-201-ATT, line 12.Must use IT-201-ATT therefore filing IT-201 use code 354 on Form IT-201-ATT, line 12.  NOTE –You cannot claim the volunteer firefighters’ and ambulance workers’ credit if you receive a real property tax exemption that relates to your volunteer service under Real Property Tax Law (RPTL), Article 4, Title 2.

32. IT-258 Refundable Nursing Home Credit Available for amount of assessment imposed on a residential health care facility pursuant to Public Health Law section 2807-d(2)(b).Available for amount of assessment imposed on a residential health care facility pursuant to Public Health Law section 2807-d(2)(b). The assessment must be separately stated and must be paid directly by the individual taxpayer claiming the credit.The assessment must be separately stated and must be paid directly by the individual taxpayer claiming the credit. Credit equals the assessment amount (not expenses) separately stated & accounted for on the billing statementCredit equals the assessment amount (not expenses) separately stated & accounted for on the billing statement  Enter the amount and code 258 on Form IT-201-ATT, line 12, or Form IT-203-ATT, line 12.

33. IT-249 Claim for Long-Term Care Insurance Credit  Credit is for premiums paid for qualified long-term care insurance.  The credit is equal to 20% of the premiums paid during the tax year for the purchase of or for continuing coverage under a qualifying long-term care insurance policy.

34. IT-214 Claim for Real Property Tax Credits for Renters and Home Owners  INCOME less than $18,000.  ADJUSTED RENT less than $450.  MUST have paid real property taxes or rent  MARKET VALUE OF HOME less than $85,000  MUST be a resident for the entire year  CANNOT be claimed as a dependent

35. IT-214 Definitions  Members of household - all who share your residence and its furnishings, facilities, and accommodations whether they are related to you or not.  Household gross income - income from all sources that you and members of your household receive. It does not include food stamps, Medicare, Medicaid, scholarships, grants, surplus food or other relief  Adjusted rent – the rent paid after subtracting any charges for heat, gas, electricity, furnishings, or board. Do not include any subsidized part of your rental charges in adjusted rent.  Property taxes paid -  Property taxes paid - In computing the amount of school district property taxes paid, include only the amount of school district property taxes paid.

36. IT-250 Claim for Credit for Purchase of an Automated External Defibrillator IT-250 Claim for Credit for Purchase of an Automated External Defibrillator  Credit is purchase for an automated external defibrillator.  Device is defined under Public Health Law and must be a medical device approved by the United States Food and Drug Administration.  Credit is equal to the lesser of the purchase cost of the unit, or $500.  There is no limit on the number of units purchased during the tax year for which the credit may be taken - credit cannot exceed $500 for each unit purchased.  Credit is not refundable.

37. IT-241 Claim for Clean Heating Fuel Credit  Credit is for purchase of bioheat for space heating or hot water production for residential purposes within New York State.  Credit is available for tax years 2006 through 2011.  Credit is claimed for the tax year in which bioheat is purchased.  If two or more taxpayers share in the purchase of bioheat, the amount of the credit allowable to each taxpayer is to be prorated according to the percentage of the total bioheat purchased by each taxpayer.

38. IT-258 Claim for Nursing Home Assessment Credit IT-258 Claim for Nursing Home Assessment Credit  Credit is for individuals who you paid the assessment imposed on a NYS residential health care facility (nursing home) pursuant to Public Health Law section 2807-d(2)(b).  Credit is equal to the assessment amount during the year.  The assessment must be separately stated and accounted for on the billing statements.  Credit must be paid directly by the individual claiming the credit.

39. New York State and Local Sales Tax  NYS Sales Tax is owed if you purchase property or a service delivered to YOU in New York State without payment of sales and use tax; such purchases through the internet, by catalog, or from television shopping channels  most tangible personal property is subject to tax clothingprewritten software clothingprewritten software jewelrybooks (excluding text books)jewelrybooks (excluding text books) compact diskvideos, etc.compact diskvideos, etc. electronic equipment furnitureelectronic equipment furniture Line 35 on IT150 or line 59 on IT-201 Line 35 on IT150 or line 59 on IT-201

40. ONLINE SERVICES WWW.NYSTAX.GOV

41. Online Services (formerly Online Tax Center) In early 2011, we’ll be adding new features to our online services accounts. enhanced account viewenhanced account view e-mail notificationse-mail notifications respond to department notices onlinerespond to department notices online new Web site design (implemented mid-December)new Web site design (implemented mid-December) We’ll notify taxpayers and practitioners of the improvements via email, subscription service, and paper notices. We’ll notify taxpayers and practitioners of the improvements via email, subscription service, and paper notices.

42. Online Services (formerly Online Tax Center) Account View: The new landing page will allow taxpayers to view a comprehensive customized summary of their tax account. The page will include: List of recent messages from the Tax Department List of any recent tax bills, including tax type, date, and balance List of recent filings, including confirmation number and filing method (paper or e-file). Initially supporting Sales Tax and Individual Filings. This page will include the taxpayer’s contact information, which will be easy to revise.

43. Online Services (formerly Online Tax Center) E-mail Notifications: Taxpayers can elect to receive email notifications of certain non- statutory department notices, including assessments.Taxpayers can elect to receive email notifications of certain non- statutory department notices, including assessments. This is the first time that the department is using email to communicate with taxpayers about their personal tax account.This is the first time that the department is using email to communicate with taxpayers about their personal tax account. Taxpayer will receive an email with a prompt that they have an urgent message from the Tax Department. The e-mail won’t include any confidential tax information.Taxpayer will receive an email with a prompt that they have an urgent message from the Tax Department. The e-mail won’t include any confidential tax information. Taxpayer then goes to their online account, and in a secure environment, can view an electronic version of the paper notice they would have received.Taxpayer then goes to their online account, and in a secure environment, can view an electronic version of the paper notice they would have received. NOTE: This will be the only notice the taxpayer receives. The department won’t be sending a paper notice.NOTE: This will be the only notice the taxpayer receives. The department won’t be sending a paper notice.

44. Online Services (formerly Online Tax Center) Respond to Department Notices: Taxpayers will be able to respond online to selected department notices.Taxpayers will be able to respond online to selected department notices. Whether the taxpayer received an electronic or traditional paper notice, they’ll be able to respond online.Whether the taxpayer received an electronic or traditional paper notice, they’ll be able to respond online. Only the selected non-statutory notices are eligible for this service.Only the selected non-statutory notices are eligible for this service. NOTE: The program won’t allow taxpayers to respond to notices that aren’t included in the program.NOTE: The program won’t allow taxpayers to respond to notices that aren’t included in the program.

45. Online Services (formerly Online Tax Center) Respond to Department Notices: First group of notices to use this service will include: Assessments,Assessments, sales tax and corporation tax delinquency notices,sales tax and corporation tax delinquency notices, sales tax reclassification notices andsales tax reclassification notices and audit notices asking the taxpayer for additional information. The additional information can be scanned and sent along with the response.audit notices asking the taxpayer for additional information. The additional information can be scanned and sent along with the response.

46. NYS Department of Taxation and Finance Web Site Redesign:   Our redesigned Web site will have a user-friendly look and feel with easier to find information and services   The new design results from an in-depth study of how customers use the site (interviews, data analysis, etc.) and prototype testing with real users.

47. ADDITIONAL INFORMATION

48. Where to file PAPER returns – new mailing address  If enclosing a payment (check or money order), mail your return to: STATE PROCESSING CENTERSTATE PROCESSING CENTER PO BOX 15555PO BOX 15555 ALBANY NY 12212-5555ALBANY NY 12212-5555  If not enclosing a payment, mail your return to: STATE PROCESSING CENTERSTATE PROCESSING CENTER PO BOX 61000PO BOX 61000 ALBANY NY 12261-0001ALBANY NY 12261-0001 NOTE – address to mail payment with the IT-2105 (estimated tax payment) and address for IT-201-V (payment voucher for e-filing) are listed in the instructions of the form and these payments are sent to Binghamton NY

49. Amended Income Tax Returns IT-201X, IT-150X, and IT-203X  Amended returns must be completed as if you were filing an original return.  Attach to the IT-150-X, IT-201-X or IT-203-X amended return any: amended credit claim or other form that you attached to your original return (do not attach original version)amended credit claim or other form that you attached to your original return (do not attach original version) new credit form or any other form that you are filing for the first time with your amended returnnew credit form or any other form that you are filing for the first time with your amended return copy of any tax form, credit form, IT-2 or related withholding form, or other form that you attached to your original return and are not amendingcopy of any tax form, credit form, IT-2 or related withholding form, or other form that you attached to your original return and are not amending

50. www.nystax.gov

51. Acknowledgements  On a Fed/State filing, if the Federal tax return is rejected, the state return is not received by the IRS.  Once we receive a return, we will accept or reject the return and issue an acknowledgement.  The New York acknowledgement is generally issued 24-48 hours after the return is e-filed.

52. USING TAX WISE   MUST Enter on NYS Tax Form: School District Name School District Code County of Resident   Tax Wise will automatically calculate the Household Credit   Line 59 – NYS Sales Tax must have an entry   IT214 and NYC-210 are the only forms we accept as stand alone. However, if e-filing must be accompanied by a person income tax return – IT-201, IT-203 or IT-150.

53. Tax Credits automatically calculated on New York State software when calculated on IRS return  Household Credit  IT-213 - Empire Child Tax Credit – From federal child tax credit  IT-215 – Earned income tax credit – From federal earned income tax credit  IT-216 – Child care and Dependent Credit – From federal 2441

54. IRS forms that must be included with the NYS e-file return  Schedule C Profit or Loss from Business  Schedule C-EZ Net Profit from Business  Schedule D Capital Gains and Losses  Schedule E Supplemental Income and Loss  Schedule EIC Earned Income Credit  Schedule F Profit or Loss from Farming  Form W-2 Wage and Tax Statement  Form 1099-R Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans,IRAs, Insurance Contracts, etc.

55. Addition Adjustment on NYS return  The 414H and amount must be entered on line 14 on the W-2.  IF NYC IRC 125 must be entered on box 14 of the W-2  Other Addition modifications must be included on proper addition lines of the IT-201  Public Employee 414(h) retirement contributions

56. Subtraction Adjustments on NYS return  Must be entered on appropriate line of NYS return  Income tax refund is automatically subtracted  Social security income is automatically subtracted  Contributions to a NYS 529 College Savings Plan  Pensions - Must indicated on 1099 if the pensions is from NYS and local government of if private pension entitled to exclusion if taxpayer reaches age 59 & ½.

57. PRIVATE - If a taxpayer is 59 ½ or older, he or she can subtract up to $20,000 from the qualifying pension and annuity income from his or her federal adjusted gross income (1099R) To enter the amount on line 29 of the IT-201 page 2 (or line 18,page 1, on the IT-150), enter the amount in the 1099R, and put an “x” in box 1 which is located left to box 13/local taxes. PUBLIC - Pensions of New York State, local government and the federal government (form 1099R) The entire pension is excluded & entered on line 26, page 2 onIT- 201(or line 16,page 1 on the IT-150). To enter the amount on line 26 of the IT-201 page 2, enter the amount in the 1099R, and put an “x” in box 2 which is located left to box 13/local taxes Pension Subtraction on Tax Wise

58. Pensions   What determines if an amount that an individual receives as a pension or annuity qualifies for the $20,000 pension and annuity exclusion on the NYS personal Income tax return?   The pension and annuity income must be included in federal AGI. The pension and annuity income must be received in periodic payments (except IRA or Keogh). The pension and annuity income must be attributable to personal services performed by such individual, prior to such individual’s retirement from employment. Such individual receiving the pension must be 59 ½ of age or over.

59. Pensions  The instructions state that a pension received from NYS and local govt or the federal govt, the United States, its territories, possessions (or political subdivisions thereof) is excluded in arriving at NYS adjusted gross income. Is any state considered a political subdivision of the United States?  No. Political subdivisions refers to the political subdivisions of the territories and possessions of the United States govt such as Guam, Puerto Rico, America Somoa, and northern Marina Islands.

60. Pensions  Is a pension received from a state other than New York eligible for full exclusion as a NY state and local pension on my NYS return?  NO. To qualify for full exclusion the pension must have been received from NYS or NYS local govts or a federal pension plan. However, if you have reached age 59 ½, the pension may qualify for a pension and annuity income exclusion under Section 612(c)(3-a), up to $20,000

61. Pensions  Are direct non-governmental pension payments received by a spouse from the ex-spouse’s pension plan, pursuant to a domestic relations order, eligible for the $20,000 pension exclusion on the NYS personal income tax return?  No. These pension payments do not qualify for the pension and annuity exclusion because they do not arise from an employer- employee relationship between the spouse receiving the payments and the ex-spouse’s employer

62. Pensions  Are direct New York State or Federal pension payments received by a spouse from an ex-spouse’s pension, pursuant to a domestic relations order, eligible for full exclusion as a NYS pension?  Yes. The payments retain their character as a NYS or federal pension. Because divorce equitably distributes the retirement allowance between the two spouses, the character of the payments from NYS local retirement system or federal pensions is retirement income, regardless of whether the receiving spouse is the participant or the non-participant spouse. The amount received would be subtracted from federal AGI.

63. Pensions  Does a beneficiary of a pension qualify for a pension exclusion on the NYS return?  If it is a NYS, local or federal pension, the full amount is subtracted from Federal adjusted gross income. If it is not a NYS, local govt, or federal pension the beneficiary is entitled to up to a $20,000 exclusion if the decedent would have been entitled to it and it was not claimed on the decedent’s final return. However, the exclusion must be allocated among the beneficiaries in the same ratio as the distribution.

64. Pensions  A nonresident of the State of New York receives a pension from NYS source, is that taxable to the state of New York?  No. Section 114 of Title 4 of the U.S. Code creates a limitation on state income taxation of certain pension income. The law prohibits states from taxing retirement income received from pension plans recognized as “qualified” under the IRC.

65. Pensions  If a taxpayer worked in the private sector, do the retirement payments received from TIAA/CREF (Teachers Insurance & Annuity Association & College Retirement Equities Fund) or ING Financial Advisors qualify for full exclusion as a NYS pension?  No. Since private sector colleges are not funded by NYS, the pension payments do not qualify as NYS pension income. The pension would, however, qualify for the $20,000 pension exclusion pursuant to Section 612(c)(3-a) of the tax law.

66. Pensions  Do TIAA/CREF retirement payments attributable to a person’s employment in SUNY, CUNY or NYS Board of Education system qualify for full exclusion as a NYS pension?  Maybe. SUNY, CUNY and NYS Board of Education employees who opted to join TIAA/CREF as part of the Optional Retirement Plan qualify to exclude their Retirement Annuity pension income that was contributed by the public employer. HOWEVER, if they are receiving distributions from TIAA/CREF Supplemental Retirement Annuities (SRA) 403B plans, Group Supplemental Retirement Annuities (GSRA), IRA’s or Roth IRA’s, these DO NOT qualify for full exclusion as a NYS pension since the contributions were made by the employee. These distributions would qualify for the $20,000 pension exclusion pursuant to Section 612(c)(3-a) of the tax law.

67. Pensions  Do pensions received from the SUNY/CUNY research foundation qualify for full exclusion as a NYS pension?  No. The research foundation is a private, nonprofit educational corporation. As a separate, private corporation, the Research Foundation is not supported by New York State tax dollars, and it does not receive support services provided to NYS agencies. However, the pension would qualify for the $20,000 exclusion pursuant to Section 612(c)(3-a) of the tax law.

68. Pensions  Does a retirement pension received from Brookhaven National Lab qualify for full exclusion as a NYS pension?  No. Brookhaven National Lab is considered a private sector employer and distributions received from TIAACREF based on this employment do not qualify for full exclusion as a state, local or municipal pension. However, the pension would qualify for the $20,000 pension and annuity income exclusion pursuant to Section 612(c)(3-a) of the tax law.

69. Pensions  Are distributions from a government Section 457 deferred compensation plan considered NYS pensions qualified for full exclusion as a NYS pension?  No. However, beginning 1/1/02, government deferred compensation plans are no longer characterized as wages, but as pension or annuity payments. However, since these plans are not funded by the employer, they would not qualify for full exclusion but would qualify for the $20,000 exclusion pursuant to Section 612(c)(3-a) of the tax law.

70. Pensions  If a retired executive receives periodic payments from a deferred compensation plan which is not considered a qualified pension plan under the IRC, and the payments were considered wages under IRC 3121(v), do these payments qualify for the $20,000 pension exclusion pursuant to section 612(c)(3-a) of the tax law?  No. If the Internal Revenue Code determined that the payments received from the nonqualified plan were wages for federal income tax purposes and were reported on a W-2, they are also considered wages for NYS purposes and are not considered distributions from a pension or annuity plan. Nonqualified plans are also subject to the general wage withholding rules of the IRC (treasury regulation Section 35.3405-1:A-18 )

71. Pensions  Are direct non-governmental pension payments received by a spouse from the ex-spouse’s pension plan, pursuant to a domestic relations order, eligible for the $20,000 pension exclusion on the NYS personal income tax return?  No. These pension payments do not qualify for the pension and annuity exclusion because they do not arise from an employer- employee relationship between the spouse receiving the payments and the ex-spouse’s employer.

72. Pensions  Are direct New York State or Federal pension payments received by a spouse from an ex-spouse’s pension, pursuant to a domestic relations order, eligible for full exclusion as a NYS pension?  Yes. The payments retain their character as a NYS or federal pension. Because divorce equitably distributes the retirement allowance between the two spouses, the character of the payments from NYS local retirement system or federal pensions is retirement income, regardless of whether the receiving spouse is the participant or the non-participant spouse. The amount received would be subtracted from federal AGI.

73. Advisory Decisions  TSBA -09 (09)I and 09(10)I - Whether distributions from an IRA that was funded with assets rolled over from a IRC §403(b) tax-deferred annuity plan are subject to New York State personal income tax.  TSB-A-09 (07) I - Whether distributions from an Individual Retirement Account (IRA) are subject to personal income tax if the taxpayer rolls over a Federal Reserve Bank of New York 401K Thrift Plan to the IRA.  TSB-A-10(02)I - Whether marriage to a same-sex partner will be recognized for New York State personal income tax purposes.  TSB-A-10(06)I -  TSB-A-10(06)I - Whether a distribution from an IRA established by means of a tax-free rollover from the State University of New York Optional Retirement Program may be federal adjusted gross income when computing New York adjusted gross income.  Whether in-service distributions received from the Federal Employees' Retirement System qualify for the income subtraction modification under Tax Law §612(c)(3)(ii).  TSB-A-10(08)I - Whether in-service distributions received from the Federal Employees' Retirement System qualify for the income subtraction modification under Tax Law §612(c)(3)(ii).

74. E-file Signature Requirements  There is no need to mail Forms W-2 or other supporting documents to the Tax Department.  Volunteers are required to have the taxpayer sign the TR-579-IT for each return that is e-filed. The TR-579-IT should be retained by the volunteer with the IRS (federal) signature document.  Volunteers should: enter their SITE ID number where requesting Federal ID number or SS number enter their SITE ID number where requesting Federal ID number or SS number and Name of Site where requesting name of practitioner.and Name of Site where requesting name of practitioner. Ignore the line “Preparer’s NYTPRIN”. This is for paid preparers that are required to register.Ignore the line “Preparer’s NYTPRIN”. This is for paid preparers that are required to register.

75. If using the Taxwise Software and a paper return must be filed what you need to know  The NYS forms IT-2, IT-1099-R and IT-1099-UI are for paper filing only; if software is used to prepare the return and the return is NOT E-filed, print IT-2 for all W-2’s.  Print IT-1099R if there is NYS withholding tax on the pensions.  Print IT-1099 UI if withholding on unemployment insurance

76. Payment Options on E-filing   Electronic Funds Transfer (EFT) from a checking or savings account. EFT allows a taxpayer to defer payment until the return due date, regardless of the filing date of the return. We will not debit the account for more than the amount authorized by the taxpayer. We will reject returns if we determine that the account information is incorrect.   Credit Card   Mail in a check with Form IT-201-V

77. Direct Deposit for Tax Refunds  e-file with Direct Deposit is the fastest way to get a refund.  If a computational error results in a balance due on the return, we won’t use the account information provided for a direct deposit to debit the taxpayers account.  We will reject returns if we determine that the account information is incorrect.  NYS will not support split refunds

78. 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.

79. Estimated taxes  You are not required to fill estimated taxes if you expect to owe less than $300 of New York State, city of New York, or city of Yonkers income tax after deducting tax withheld and credits that you are entitled to claim.  Payment - April 15, June 15, Sept 15 and Jan 15  NYS does not provide statement of accounts and does not provide vouchers (IT-2105V).  The easiest and fastest way for individuals to make estimated tax payments is through our Online tax Center. Individuals can also view and reconcile their estimated tax payments electronically.

80.  NOTE: Free e-filing available by visiting http://www.tax.state.ny.us/elf/free_efile_info.htmhttp://www.tax.state.ny.us/elf/free_efile_info.htm Qualifications for free e-filing vary by software providers. Generally, if a taxpayer qualifies for EITC, or under the age of 25, or over 65, or active military or Federal adjusted gross income under $57,000. Software providers include:Qualifications for free e-filing vary by software providers. Generally, if a taxpayer qualifies for EITC, or under the age of 25, or over 65, or active military or Federal adjusted gross income under $57,000. Software providers include: –TaxSlayer.com –Freedomtax.com –I-CAN!

81. Online Services  Create an online service account to: Pay estimated income and manage your estimated tax accountPay estimated income and manage your estimated tax account View and pay tax bills (all tax types)View and pay tax bills (all tax types) Use Metropolitan Commuter Transportation Mobility Tax (MCTMT) Web FileUse Metropolitan Commuter Transportation Mobility Tax (MCTMT) Web File Use tax preparer registration and certificate reprint (register for tax year 2011 starting in mid-November)Use tax preparer registration and certificate reprint (register for tax year 2011 starting in mid-November) Report change of addressReport change of address

82. The material included in this slide show is intended only to highlight the program as of the date presented. For more comprehensive information, please refer to our TSB-M’s, forms, instructions, publications,tax laws, and amendments. Thank You Questions?