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Level 2
May 19, 2026
Question

NYC 1127 City of New York Employee

  • May 19, 2026
  • 1 reply
  • 264 views


***Warning***

 

Two years later. I still can't get TurboTax to correctly allocate the NYS and NYC1127 Taxes.

 

If you are a City of New York Employee. Do not use TurboTax! TurboTax does not have the capability to calculate the NYC-1127 within the NYS Tax return. As a City of New York employee (non-resident) you have to "eat" the tax.

 

Non-Resident Employees of the City of New York - Form 1127
Most New York City employees living outside of the five boroughs (hired on or after January 4, 1973) must file form NYC-1127. This form calculates the City waiver liability, which is the amount due as if the filer were a resident of NYC.

 

TurboTax continues to add it as refundable to the NYS return. This action will result in an audit by NYS. 

    1 reply

    LenaH
    Employee Tax Expert
    Employee Tax Expert
    May 20, 2026

    TurboTax supports and correctly handles Form NYC-1127. 

     

    Instructions to attach this form onto your return are as follows:

    1. Open your NYS return.
    2. Continue until you reach the page, Take a look at New York credit and taxes.
    3. Scroll down to the section, New York City and Metro Commuter Taxes.
    4. Click Start next to NYC Nonresident Employees Tax (NYC-1127).
    5. Fill in your information on the following screens.
    6. Continue with your return.

    @jtbrockwe27 

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