What is an IT 558 tax form in New york? And is it required to fill out, before a tax return can be received?

[LenaH]

If you have New York source income, you must allocate your income to New York. For any other income that is not sourced to New York (for example - unearned income such as interest or dividends), you can enter zero for the New York sourced amount. 

In order to allocate your income on your New York return, please follow the instructions below:

1. Open your return.
2. Click on State on the left-hand side.
3. Click Edit next to New York.
4. If you come to a page You Just Finished Your New York Return, click Go over New York again.
5. Continue through the screens.
6. Answer Were all your wages and/or your self-employment income earned in New York State? 
7. Continue through the allocation screens. 

Can you clarify what screen you are seeing Part 1 and Part 2? I do not see that on my screens. 

Lastly, if you did not receive the full amount of the third Economic Impact Payment, you can claim a 2021 Recovery Rebate Credit. This includes amounts for your spouse, if eligible, and qualifying dependents reported on your 2021 tax return for whom you did not receive a third payment.

Your 2021 Recovery Rebate Credit (Line 30 of your 1040) will reduce any tax you owe for 2021 or be included in your tax refund.

To access the stimulus section of the return, please complete the following:

1. Open your return.
2. Search stimulus with the magnifying glass tool at the top of the page.
3. Click on the Jump to link. 
4. Enter the amount of stimulus you received on the page, Let's double-check the amount you received. Enter $0 for the amount you received. 

Please note that this page will not appear if your income is above the limits of the Recovery Rebate Credit. Those limits are:

• $160,000 if married and filing a joint return or if filing as a qualifying widow or widower
• $120,000 if filing as head of household or
• $80,000 for all others.

@Bullman23

[Bullman23]

Thanks for the clarification. To repeat, I am an Illinois resident that was working remotely in NYC and worked in Illinois, as an Illinois resident. That is why I filed the 203 as a nonresident who did not live in New York State or City at any point in 2021. I am unmarried and made more than $80,000, total ($50,000 in NYS and $35,000 in Illinois). So I wasn't eligible for any covid payments. Also, I believe I got the form because I put in stock investment income (by mistake) that was actually my New York income that I made. So the mistake I made was that I put my income from my job in NYS in the section where I was supposed to put if I had NYS investment/stock/bond income, etc.

I then amended the NYS form on Turbotax. Then I was mailed the IT 558 for. I was thinking I would put 0 under every line because there was no additional NYS income other than my income from my employer in NYS. So on which line should I just put my income from the NYC job? Since I already reported that income on my federal income tax form and on my amended NYS tax return?

[AmyC]

The IT 558 came out in 2020 to adjust your income. If your only income was NY wages, you would not need this form.  Since they sent it, see if you have anything relevant.

I am not certain which apply to your particular situation, I have listed two of the most common reasons of why Form IT-558 would be added to your NYS return. 

• Covid-19 related distributions from a retirement plan
  • For distributions taken from retirement plans, NY is requiring that the entire amount be added back to federal AGI, and then taxpayers will subtract out any taxable amount already included in federal adjusted gross income (AGI). 
• Adjustments for charitable contributions
  • Created as a new charitable deduction for those taking the standard deduction on their federal return of up to $300. This amount is required to be added back to income for NY purposes.

There are many other reasons that would require you to file this new NYS form. You can read more about Form IT-558 here: New York tax law update: What you need to know

 Enhanced Form IT-558, New York Adjustments - includes online version for filing.

If you still do not see a reason for the IT 558, you may need to mark zeroes and with a bold pen or marker, indicate that your only NY income was wages.

@Bullman23

[rcwrcw99]

the issue with the $300 charitable deduction doesn't apply to 2021, though.  I have the same problem as others.  NY told me I need to file the form.  But Turbotax didn't generate the form based on my answers.  I did have NY source wages (all of my wages), but am non resident (a student).  So my only non NY income (reported to CT) was my unearned income of interest, dividends, cap gains.  I did the allocation worksheet but allocated 100pct to NY.  I just don't understand why Turbotax says I don't need a form and NY says I do.  What did I pay turbotax for????

[evanshorey]

Tell me about it. Very frustrating. Huge issue and still no TurboTax update or resolve. The resolve is we have to figure it out ourselves  after paying $100 (home & business) in software. I’m so frustrated with them that I’d  ask for a refund, but I don’t want another hour wasted on the phone with them.

[AndybC8]

I submitted my returns (with no errors) to IRS and NY on 3/20/22 with a fully up-to-date TT. They were both accepted. I've now received a letter from NY that I'm missing the IT-558 form. Shouldn't TT have triggered that form as has been reported? I've had several calls with TT support and they have no idea what to do or how to help. If NY determined from my return that this form is needed, shouldn't TT have included it? Is there some way that TT can now generate this form? It is included since I can call it up along with it's worksheet. It's just unpopulated..

[evanshorey]

I have been asking this same question for a month now and no one with TT seems to have an answer. TT simply will not populate this form at all. Even if you add the form, it won't help you populate it. This is a glitch TT missed and never did anything about it nor can they advise on it. They are so kind to send me the link to the IT-558 form, which any moron can find and google themselves, but that's not even what I was asking for. TT loves to answer questions that I am not even asking. I wanted help with the form. Whatever you do, don't do the "file as an amendment" as TT advises. TT says file as an amendment, even if you're not amending, and it will populate. Not true at all. You will just have to back and delete a bunch of crap to correct it. It was just a suggestion some TT bot put on here. Terrible advice. I figured out that I just needed to print out the IT-558 Form and place zeros in the columns that apply and total zero at the end. Hope this helps. 

[AndybC8]

Thanks for the info. You're ahead of me in this search for answers. I did notice that there is a section in the NY Step-by-Step for "Changes to NY Income". But the one section that might apply to me about "NOL Limitation Adjustment" assumes that the IT558 worksheet is already populated with a code S-004. This is pretty far down in the weeds for complications that a typical TT customer wouldn't be able to figure out. This area seems to be very poorly thought out and executed. I'm going to just guess and complete the form on my own and send it NY without amending, as you suggest. At worst, NY will find a problem and reply again with something more specific next time. The difference in taxes for me is about $5, so this is not worth it for anyone.

[JELG]

I can't find my original post but I had this problem. NYS sent a letter saying they needed the IT 558. TurboTax did not have it. So I down loaded it from the NYS website, filled it in with all zeros and snail mailed it back. I received a letter from NYS that my return reflected a computational error. They adjusted it so I received a refund of $102.91, instead of $203. So hopefully that is the end of the story, until next year.

[AndybC8]

Thanks, JELG. I found the form on TT and filled it out with what I could guess. I, too, expect that if NY doesn't like my answers they will advise me of corrections. Best I can figure out, the difference in taxes for me is going to be about $5, so if they want to  spend all this time on it, I'm OK with that.

[christopher123]

Hi JELG,

How did you fill it in with all zeros? For Schedule A, Part 1 it looks like there's 1a, 1b, 1c, 1d, 1e, 1f, 1g (which is 7) but according to the instructions there are at least 15 additions.

Did you fill in A-_ _ _ or just put in zeros for everything without filling that in?

[evanshorey]

This is how I filled out what was applicable to me. I think NY will get the point of the form filled out.

Picture attached. 

[evanshorey]

Both Sections of Part 2 are not applicable to me, that's why I didn't put zeros in those sections. 

[Pepe7211]

Hi, I filled my 2021 taxes with you guys. Now the IRS is asking me to fill out the IT-558 form. 
why? Didn’t I filled it out when doing the taxes with Turbo Tax? 
confused and annoyed. 

PP

[Chrisamat92]

Yeah, turbotax is really dropping the ball here. I too received the same letter requesting Form IT-558 when TT never prompted me to fill it out. Thanks to @evanshorey here for providing some concrete guidance. I will go the route of all zeros. I've been using TT for almost a decade and I'm really disappointed in them missing the prompt to complete this form, but even more so by their lack of resolution here.