Form IT-558, NY State Adj. due to Decoupling from the IRC.

[evanshorey]

I filed my taxes, but then few weeks late I received a letter from New York requesting me to send Form IT-558, NY State Adjustments due to Decoupling from the IRC. When I filed with NY Sate, Turbo ax never prompted me to fill out Form IT-558. They are requesting me to send a copy. I am able to find the form in TurboTax, but how do I get TurboTax to go back and assist in helping me to filling out?

[evanshorey]

Help plz!

[MaryK4]

If the IT-558 is not included with your New York state tax return, go back through the New York questions very carefully.  Follow these instructions: I need to amend my state return - TurboTax Support (even if you are not amending, you will have to follow these steps).  

For tax years beginning before January 1, 2022, the 2020-2021 New York State budget (Part WWW of Chapter 58 of the Laws of 2020) decoupled personal income tax from any amendments made to the Internal Revenue Code (IRC) after March 1, 2020. This includes changes made by the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act and any other federal changes to the IRC. Therefore, any amendments made to the IRC after March 1, 2020, will not apply to New York State or New York City personal income tax.

[kahoots]

Did you ever figure this out?  I just got the same letter in the mail!!! Ugh.  

[evanshorey]

I just ended up putting all zeros in Schedule A, Part 1 and Schedule B, Part 2, and totaled zero line 18. 

[kahoots]

Interesting. I am doing the amended since that is what the person above said. Did you do that or just filled the 558 with 0s?  I don’t even know how we got that. 

Do you live in a different state and work in NY? That is my situation. But standard w2…1 job…nothing confusing. 

thanks 

[evanshorey]

I filled all zeros because that seemed applicable. Last year, I was a part time resident of NY. I moved. Thankful my last time to file in NY, lol. 

[evanshorey]

I tried to amend, but it makes no difference downloading the 558 or any prompts to do so. Once I figured none of the adjustments for 558 really applied to me. I simply printed the 558 and put all Zeros in Schedule A, part 1 and in scheduled B, part 1, and totaled to zero. 

[kahoots]

Thanks. How long has it been since you submitted? 

[evanshorey]

Just over a week or so. No response from NY as of yet. 

[Bullman23]

Wait, I'm a bit confused. I filed a 203 form. I live in another state in the midwest. I was not a resident in NYC or NYS (for the year of 2021), and did remote work as an employee of a company in NYC. So do I just put zero for everything? I earned no additional income outside of my employee salary in NYC. Do I put my employee income in part 1 or 2? I read the instructions and it's kind of confusing. Also, if this helps, I received no stimulus or any type of government funding for the year of 2021.

[MarilynG]

No, your New York sourced-income is 100% taxed by NY, even though you didn't live there.  In the Non-Resident NY state interview, you will be asked to indicate what portion of your Federal wages belongs to New York (all of it). 

Your Resident State will also tax your New York income (as they tax all of your income), but gives you a credit for tax paid to New York, so you are not double-taxed. 

Click this link for more info on How to File a Non-Resident State Return.

Yes, the New York Form IT-203 is the correct form for your return.  You don't need the IT-558 mentioned in this thread.

@Bullman23

[parrit]

Did you hear anything from them this week? I just got the same letter from them today.

[evanshorey]

No, I haven’t heard anything. What did your letter say?

[parrit]

It said, "We need to verify information reported on your return. Your return reported a recomputed federal adjusted gross income amount without including the required form."

I moved to PA at the end of January 2021 and my former employer didn't update my address until April, so I expected some shenanigans due to that. I filed a part-year return and made sure to allocate correctly for the time I actually lived in NYS.

But none of the conditions on IT-558 apply to me, so I'm surprised they're asking for it. Wondering if I can do the same thing you did and just put all zeros.