NY State form IT-203-F

[LavenderBeaver]

Hello! I am able to work on form IT-203-F when I check the box for the "Capital Gain or Loss Allocation Smart Worksheet" on the NY Allocation Worksheet.  However, it is incorrectly attributing my NY income from IT-203-F in row 7, "Capital Gain or Loss." On my federal taxes, my RSU's are in Row 1 - "Wages, Salaries, Tips, etc." Row 7 is automatically populated from the sum of my Schedule B's -- I can't change it or put it in Row 1. Should I just submit my taxes with the income from New York sources in row 7 anyway? It seems incorrect.

[RobertB4444]

The RSU income is capital gains so it seems like having in the Capital Gains and losses section would be correct.  However, if you would like to have someone walk through the return with you to double check I recommend getting live expert help.

Here is a link to finding a TurboTax expert.

However, that requires upgrading your product which may be an expense you don't want.  In that case you can call an expert and ask questions over the phone.

Here is a link to the TurboTax Phone Number.

[LavenderBeaver]

The RSU income is in Box 1 of my W2, and is allocated to wages, tips, and other comp. Let's say the capital gains amount it pulled from my federal return (line 7) was around $100 -- with the way Turbo Tax is allocating my RSUs from IT-203-F, line 7 for state shows $10,000 on my Allocation Worksheet. That amount should be on line 1. This seems like a bug in Turbo Tax.

[LavenderBeaver]

@RobertB4444 I should at least be able to specify where the income should be allocated based on where it was allocated on my federal return. Turbo Tax shouldn't automatically assign all income to line 7 without an option for adjustment.

[LavenderBeaver]

@RobertB4444 

See the discussion on this thread: https://ttlc.intuit.com/community/state-taxes/discussion/what-does-the-form-203-f-mean/00/1404869/pa...

Turbo Tax gives the error: "Your total New York capital gains should not exceed the Federal capital gain or loss amount" - so why is it putting that amount in row 7?
It seems like the implementation of form IT-203-F is not working properly. Would it be possible to re-add the functionality to attach a PDF? 

[demens13]

Hit the same issue today. You are correct and Robert "expert" is wrong. RSUs are NOT capital gains. TT2021 implementation of IT-203-F is wrong, which is saying a lot given last year the form wasn't even supported in the tool but at least you could manually upload it.

Please provide a solution asap.

[gmlueck]

I have this same problem, and I hope someone from TT support can suggest a solution.  I've been able to use TT in past years to file IT-203-F for RSU income, but it no longer seems possible to do this.  I have the downloaded version of Turbo Tax Home and Business 2021.

My situation is the same as @LavenderBeaver.  I'm a NYS non-resident who receives part of my W2 income as RSU stock grants.  Since these vest over multiple years, I need to use IT-203-F to allocate this income to NYS.  I've tried this in both step-by-step mode and in forms mode, and the TT software seems broken in both cases.

In forms mode, I tried changing the "Allocate by Formula" drop-down to "M" (multi-year allocation) on the New York State Wages/Self-Employment Income Allocation worksheet, Part I (New York Wage Allocation).  When I do this, TT does *not* add any IT-203-F form to my return, and it incorrectly excludes all of that income from NYS.  If I manually open form IT-203-F, TT links the income to Schedule A (Current year allocation of income attributable to past employment in NYS).  However, this is not correct in my situation.  Instead, I want to allocate the income on Schedule B (Stock option, restricted stock, or stock appreciation right allocation).  I've tried filling out Schedule B anyway, but TT does not link the result correctly back to the main IT-203 form.

In step-by-step mode, I see a similar problem.  On the "Allocate Wages to New York" page, I tried selecting "Allocate over multiple years".  This causes TT to create an IT-203-F form, but incorrectly links the income to Schedule A.  Again, I can not find any way to fill out the information in Schedule B and get TT to link the result back to the main IT-203 form.

As @LavenderBeaver noted, previous versions of TT allowed you to manually fill out IT-203-F and attach a PDF to the return.  It would be great if you could restore this functionality.

For others who have this same problem, the best solution I've found is to fill out the PDF version of IT-203-F (as you needed to do in prior years).  Then in TT, select "Allocate by percentage".  When TT asks for the percentage, enter the number you calculated on line 19 of form IT-203-F.  This causes TT to allocate the income to NYS correctly.  However, TT does not have any way to submit your IT-203-F with your return, so I fear this will invite an audit since the NYS Dept. of Taxation will have no way to know how you came up with that percentage.

[nosadciw]

I have the same problem as @LavenderBeaver. I have RSU stock grants that I report on IT-203-F.  TurboTax puts them on line 7 of IT-201 which is wrong.  Per NYS IT-201 instructions, RSU vested grants should be reported on Line 1 of IT 201 (NY column).  Part year and non resident NY taxpayers are often audited.  This huge error makes the chance of an audit that much higher.  Will TurboTax fix this soon?

[andreykravtsov]

This is crazy. The form is completely broken on Turbotax Online for Schedule B. Trying to add multiple entries or even saving the results - not working. Purchased desktop version to work around that issue only to find another issue described in this thread. This is insane and I hope TT figure this out asap.

[andreykravtsov]

So in desktop version, I was able to achieve this:

Was able to set "do not allocate employer", then using  forms view, and put "1" into "Wages, salaries, tips, etc. ." of Page 2 of 4 IT-203 (2021) as that is the only error that remains then. It's factually wrong but at least it lets it bypass the check and preserves the IT-203-F properly with empty Schedule A, filled out multiple Schedule B's and properly showing up as fractional income. Not filing yet, just printed out and ensured that I saw the right forms for NY and proper tax.

[pgiani]

I am experiencing similar situations.  I have a related question but not sure where to ask.  If I only spent 11% of my time in NY in 2018 and am not a resident, I assume NY would look at a new 2018 Grant that vests over 4 years as 11% theirs and 89% CA where I live.  Is my understanding correct? Also in 2018 if I had vests from 4 prior grants grated, does NY also consider that 11% taxable?

@LavenderBeaver  Hi you seem to have a solid handle on this topic. The 2021 TT forms issue is very frustrating. Thank you. 

[shkcpa41]

I am using Drake and it is also putting the 203-F income on Line 7 for capital gains.

[rahulchugh]

Is this issue resolved?

What did you all finally do in this scenario.

I am on the final page of submitting the return using their desktop app but my IT-203-F RSU income is allocated to line 7 (capital gains) and turbo tax is telling me at the same time to enter the wage in line 1.

[andreykravtsov]

Turbotax seems consistently ignoring this. It's still broken completely on web if you try to add multiple entries. Reported and spoke to support team about it a year ago - and no fixes this year either. PC at least allows you to enter multiple but then it fails validation. I ended up putting $1 into wages in New York to trick the validation to pass. Sad.

[rahulchugh]

I have done the same for the time being. Putting $1 seems to be the only workaround. Has that raised any audit from New York state for you?

I am 100% sure that this is wrong, because of this capital gains reported to federal will be different from that of the state now.

TurboTax should put the RSU income as wages and not capital gains.