I filed my 2022 NY State tax return through TT desktop, claiming 0% income from NY. (My employer incorrectly assigned me to a NY location for a few weeks before having it corrected.)
NY State Dept of Taxation requested additional information, including forms IT-203B and IT-203F. These forms are not included in my TT return when viewing Forms or when selecting printing of all NY State forms. Nor do I see a way to have them created.
How would I complete and print NY IT-203B and IT-203F using TT?
The main additional information that you have to provide is an explanation that the New York wages shown on your W-2 is a mistake, and that you never worked in New York in 2022 at all. If you can get a letter from your employer saying that it's a mistake, that would help.
To complete Form IT-203-B in TurboTax, in the Wage Allocation section of the New York interview, on the screen that asks you to select an allocation method, select "Allocate by Number of Days." On the screen that asks for work days outside of New York you will enter the total number of work days for the year (after subtracting weekends, holidays, vacation, etc.). This will result in allocating $0 wages to New York. When you check the New York return for errors you will get an error message saying that the number of days worked outside New York should be less than the total number of days worked. But in your case it is not less, since you actually did work outside New York on all work days. You can just ignore the error and print the form with $0 wages allocated to New York.
Form IT-203-F does not seem to apply to your situation. It's for allocating income to different years. They might be asking for it because they think the New York income on your W-2 might be attributable to work that you did in New York in an earlier year. So you might want to add to your explanation that the New York income on the W-2 is not related to work done in an earlier year, so Form IT-203-F is not applicable.
I'm not sure how you can complete Form IT-203-F in TurboTax, unless you have some capital gains or losses, or capital gain distributions. If you do have one of those, go to the "Nonresident other allocations" section. On the New York Income Allocation screen check the box that says "Check this box to use Form IT-203-F to allocate all or part of your capital gains using multiple years."
The main additional information that you have to provide is an explanation that the New York wages shown on your W-2 is a mistake, and that you never worked in New York in 2022 at all. If you can get a letter from your employer saying that it's a mistake, that would help.
To complete Form IT-203-B in TurboTax, in the Wage Allocation section of the New York interview, on the screen that asks you to select an allocation method, select "Allocate by Number of Days." On the screen that asks for work days outside of New York you will enter the total number of work days for the year (after subtracting weekends, holidays, vacation, etc.). This will result in allocating $0 wages to New York. When you check the New York return for errors you will get an error message saying that the number of days worked outside New York should be less than the total number of days worked. But in your case it is not less, since you actually did work outside New York on all work days. You can just ignore the error and print the form with $0 wages allocated to New York.
Form IT-203-F does not seem to apply to your situation. It's for allocating income to different years. They might be asking for it because they think the New York income on your W-2 might be attributable to work that you did in New York in an earlier year. So you might want to add to your explanation that the New York income on the W-2 is not related to work done in an earlier year, so Form IT-203-F is not applicable.
I'm not sure how you can complete Form IT-203-F in TurboTax, unless you have some capital gains or losses, or capital gain distributions. If you do have one of those, go to the "Nonresident other allocations" section. On the New York Income Allocation screen check the box that says "Check this box to use Form IT-203-F to allocate all or part of your capital gains using multiple years."
Thank you for your specific recommendations. They are very helpful.
I was able to create the IT-203B form by redoing the NY allocation to Days.
Oddly, the main IT-203 form still is using allocation on percentage, as I filed.
Note: TT would not file the NY State return with a 0% allocation, saying it would be rejected. I used a 0.1% allocation to get TT to submit electronically. This resulted in a very small amount of NY tax that would not be returned.
Do you think I should redo/force the NY State return to remove the percent allocation and use days in the main IT-203 form?
Also, in completing the NY State info when using Days for allocation, it asks for 'total days worked outside NYS' and 'total days worked at home'. I made these the same. On form IT-203B, they are subtracted and leads to 'total days worked in NYS' to be the full amount of days, which caused the days multiplier of '1'. This seems to indicate that all my days were worked in NYS. Have I done this correctly?
Total days worked at home should be zero (or leave it blank). That's referring to telecommuting, which is not what you did (as I understand it). Total days worked in NYS should then be zero.
Based on your original question I assumed that you worked at your employer's location in another state, not in New York, all year. If you worked at home in another state, and telecommuted to New York, that could change the picture. In that case, you need to take a step back and explain your work arrangement in more detail, including whether you ever went to your employer's New York location.
If my assumption was correct, you did not work in New York at all in 2022. What makes it an odd situation is that normally if you did not work in New York at all you would not file a New York tax return. You only had to file because of a mistake on your W-2. The tax forms are designed for normal cases, not for correcting mistakes. The Department of Taxation is only asking for IT-203-B because your W-2 shows New York wages (and possibly New York withholding), but you reported zero New York wages on your tax return.
I think you should just reply to the letter from the Department of Taxation, and not file anything or do anything else. In your reply, give a clear explanation of what happened, and include the IT-203-B showing zero days worked in New York. Then just wait until you get a response from them.
I work from home for my employer based in WA State. I never telecommuted for any NY State work. Since I work remotely 100% of my time, I wasn't sure how to complete the 'Days worked at home'. It seems I should put 0 for 'Days worked at home'. Will that cause problems when my explanation will include details that I work remotely for my WA employer? Thx.
Adding additional details:
My employer does have an office in NYC. That was where I was incorrectly assigned to for a brief time.
Days worked at home should definitely be zero. Although it doesn't say so explicitly, it clearly means days worked at home for a New York employer. For you, that's zero. If it's anything other than zero New York will treat it as days that you worked in New York.
I don't think it will cause any problems as long as your explanation makes it very clear that you did not live or work in New York at any time in 2022, did not work for a New York employer, have no connection to New York, and that the New York wages on your W-2 was just a mistake by the employer. As I said earlier, it would help if you could get a letter from the employer saying that it was a mistake.
What state do you live in?
I will be unavailable from now until Saturday night. If you have further questions, I'll respond Saturday night.
Thx. I think I have the answers I need.
Much appreciated your expertise.
I live and work in PA.
A clarification on the IT-203F form. Would it be needed for RSUs distribution?
RSUs are treated as income and some are sold immediately to cover the taxes.
I do get a 1099-B from my brokerage account detailing the sale, which is at a few dollar loss, given the transaction fees.
Unfortunately, I was incorrectly assigned to a NY office just before the payout of my company RSUs. Thus that payout was taxed by NY State. Would I need to complete the IT-203F? They are not recorded as capital gains, nor are RSUs considered stock options.
Thx.
You're getting beyond my level of expertise.
Form IT-203-F covers restricted stock. I'm not sure that's exactly the same thing as RSUs, but it sounds like it is. The complication is that, even though the RSUs didn't vest until 2022, they were awarded based on your work for the company in an earlier period, before 2022. If you worked in New York, telecommuted to a New York location, or lived in New York at any time during the period for which the RSUs were awarded, then part of the income is New York income and you probably do have to fill out Form IT-203-F and pay New York tax on the New York portion of the income.
On the other hand, if you never worked in New York, worked remotely for a New York location, or lived in New York, then it remains in the category of a big mistake by the employer. In that case, if you fill out Form IT-203-F (Schedule B would seem to be applicable), what they call the "New York workday fraction" is going to be zero, like on the IT-203-B, making none of the RSU income subject to New York tax. Again, your explanatory letter should clearly state that you did not live in New York or work in New York, either physically or remotely, at any time. If you did live in New York at any time it gets more complicated.
This is a pretty obscure area of New York tax law. If no one who is more knowledgeable about it posts a response here, you might want to try to find a tax professional in New York who can help you. If you are near the New York border you can probably find a local tax professional in Pennsylvania who is familiar with New York taxes and has the necessary expertise.
Has anyone figured this out?
My NY based employer inaccurately deducted both NY and OR taxes on my first pay check. I am full time Remote in Oregon. I should never have been charge NY taxes, I do not commute there from OR, I do not have an office in NY. My employer messed up on my first pay check before fixing this.
My employer told me to file IT-203. I am trying to file the IT-203 to recovering the NY taxes and reading about others having issues; I am not sure how to proceed correctly. Having to purchase a $45 state form from TurboTax for this situation irritates me. And that may not even provide a full refund from NY in the end. Can someone please clarify and help? How do I deal with this mess? My employer is of no assistance (and it was their mistake!) Calling someone at TurboTax was of little help. They didn't really understand this.
You have to file a nonresident return to claim that you did not have income. The program does not like zero income with zero days of work so you need to mark one day of work in NY. There is a long thread where we tried different things, see here. It really is your employer's fault and they could have corrected the problem. It is a hassle for them to file the NY paperwork so it is easier to hand it off to you. Now you get the mess. Keep all of your documentation, attempts to correct, actual events recorded and safe for a few years.
Thanks AmyC.
When I spoke to someone at NY State Tax office, she mentioned the same thing my employer mentioned; use form IT-203 non-resident. (That form is available as a PDF and "type to fill-in" then print it out and mail)
Otherwise, it seems the ONLY way to use TT is to purchase the NY state form ($45) and claim ONE day. UGH.
I think I will file the 203 via paper and mail it in. There I can list Federal wages in one column and enter ZERO for a NY column. And a line for all taxes paid (incorrectly) for a refund.
I don't need it to be fast (electronic) just accurate and a FULL refund and avoid buying a state form from TT.
Does this sound accurate?
Yes, that sounds like your best solution. Here is the Form IT-203 and instructions for NR. When you mail it in, be sure to use tracking just for your peace of mind that you information has arrived safely rather than being stolen and worrying about identity theft. You don't need to have it signed for.