It depends on the amount of the award. Generally, you must file an IT-203, Nonresident and Part-Year Resident Income Tax Return, if you get income from a New York source and it is greater than your New York Standard Deduction.
The Standard Deduction amounts for New York are based on your filing status. They are:
Thanks. The award is substantially above those amounts so you saying it is taxable in NYS, correct? Can you point to the section of the code that requires this for non-residents?
There is a long list of incomes that are taxable to nonresidents in IT203 on page 5.
Nonresidents –
New York source income For nonresidents New York source income is the sum (with adjustments for special accruals as defined on page 46) of income, gain, loss, and deduction from: LIST
What is the source and nature of the "award"? What kind of form (if any) was it reported on. e.g. 1099-Misc?
The key is does this qualify as "NY source income"?
That sounds like "NY source income" to me.
Did you get a form 1099-G (or some other form)? What was in boxes 10a, 10b and 11? Were you a NY resident at the time you filed the claim?
You may want to call the NY Department of Taxation and Finance and get a direct opinion. If you do, please post here to help others.
I received the award in 2022 so have not received a 1099.
I was a NYS resident when I filed the claim but moved to Florida years before its receipt. (My connection to NYS ended with my move.)
I have called NYDTF who said it is NYS taxable, but seriously, what would one expect them to say!
I have researched this thoroughly and all answers suggest that it’s “probably” NYS taxable. Any suggestions for how to acquire an answer with 100% certainty? Of course I want to do this correctly while determining if I can legally save NYS taxes.
Thanks for your help!
There is no 100% certain when it comes to taxes, and that's on the simpler issues.
The safe thing to do is to report it on a NY non-resident return, particularly if the 1099-G identifies it as NY income. NY is particularly aggressive when it comes to residents who move to no tax states,
Thanks.
What are the positives/negatives regarding asking for a “private letter ruling”? I know the IRS does these, does NYS?
An award received in 2022 will go on next year's (2022) income tax return @mft1. You may receive a Form 1099 in January/February on next year.
Asking for a private letter will cost you money. Additionally, to make the best case, you may want to hire a tax attorney who is versed in the law. However, you will get a definitive answer from New York.
For more info Request a New Letter Ruling