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MF99
Level 2

NYC 1127 taxes

On my New York State form IT-201 line 73 do I enter my new york city 1127 withholding taxes along with filing the seperate NYC 1127 form?

I work in nyc as non-resident of nyc.

 

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Accepted Solutions
AmyC
Expert Alumni

NYC 1127 taxes

Yes, NYC tax withheld is part of the subsection of your NY state return. When you enter your W2, the program will carry those state and locality taxes for you. You do not want to be in the forms mode entering the information as that will void your accuracy guarantee.

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10 Replies
KarenM90
Level 11

NYC 1127 taxes

It depends, but generally speaking you do not need to file NYC taxes separately from your NYS state tax return.

 

 This is because the NYS state tax return already includes the calculations.  

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MF99
Level 2

NYC 1127 taxes

Hi -

Thank you for your response.  On the NYS IT-201 I entered my ny state withholding taxes on line 72.  Do I also enter my NYC 1127 locality withholding taxes on line 73? 
It makes a big difference in my refund and I want to make sure it is the correct thing to do. 
Thank you.

AmyC
Expert Alumni

NYC 1127 taxes

Yes, NYC tax withheld is part of the subsection of your NY state return. When you enter your W2, the program will carry those state and locality taxes for you. You do not want to be in the forms mode entering the information as that will void your accuracy guarantee.

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MF99
Level 2

NYC 1127 taxes

For this year 2019 I did enter the locality taxes in the w2 section and not manually in the form.  In prior years I did not enter the locality taxes in the w2 section or on the form.  Can I file amendments for the prior years?

Also would I start amendments with the earlier to present or present to earlier?

Is this better done by a professional or can I do it on my own?

Thank you.

Andreas_hates_1127
New Member

NYC 1127 taxes

I'm confused.

 

The instructions for NYC-1127 specifcally state:

 

NOTE: The payment required by Section
1127 of the New York City Charter is not
a payment of any City tax, but is a payment made to the City as a condition of
employment.

 

but TurboTax is applying it in my IT-201 state return as Total New York City Tax Witheld.

 

I contacted TurboTax support, and they said it is correct, but it is in clear contradictoin to the 

Note in the NYC-1127 instructions.

 

 

 

 

SusanY1
Expert Alumni

NYC 1127 taxes

Where on the return are you concerned about seeing the city tax withholding?  TurboTax will apply it to Form 1127 when you indicate that you are not a resident of the city.  The treatment of it is "city tax" by the program is correct, as it is how the software knows where to put the form.  The 1127 form is simply providing you with the technical definition of what you are paying.

 

Perhaps if we know more about where you are seeing the number that it appears incorrect we can provide additional reassurance?  (It sounds like it may simply be on a summary screen, which is not part of any tax return.)

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Andreas_hates_1127
New Member

NYC 1127 taxes

TurboTax is applying the 1127 witholding amount to line 73 (Total New York City  Witheld) on NYS Tax Return form IT-201.

 

The question is whether or not this is the right treatment, I don't think it is right.

 

Jackgabe
New Member

NYC 1127 taxes

Adding the amount of the NYC 1127 waiver withheld from my paycheck on line 73 for local taxes almost doubles my NYS refund? is this correct.? The 1127 form has to be mailed to NYC which generally in prior years  NYC sends a small refund as well. 

 

Let's assume my employer took out NYC taxes like I was a resident in error when I file my returns I would receive 100 percent return of taxes paid to NYC because i was a nonresident and not obligated to Pay NYC income Tax This scenario would be treated correctly by the turbo tax program.

 

In an 1127 scenario, NYC as a condition of my employment with NYC requires me to pay a waiver its not a tax yet turbo tax is viewing this as taxes paid which your not obligated to pay causing my NYS refund to go from $1900 prior to adding the 1127 waiver on line 73 to over $4,000.

 

If this is correct i am delighted to receive all my 1127 waiver money paid back , but if it's an error on the turbo tax program i am going to have a headache .

 

If this is correct can i amend my last 3 years of state tax returns because wow the owe me some ching 

 

Jackgabe
New Member

NYC 1127 taxes

Something seems wrong turbo tax doubles my NYS refund when i follow the directions to generate an 1127 form. It's treating the amount of the 1127 waiver as a tax i am not obligated to pay as a non-resident.

 

I am delighted to receive all my 1127 money back but it doesn't seem correct because the 1127 waiver is not an NYC income tax it is a waiver NYC employees pay for living outside of the City of New York.  I am not sure how the city of New York is going to see it when the state refunded back all of their waiver money?

 

If this is correct then in years prior turbo tax handled this differently can i amend my returns and get my money back ?

 

 

AmyC
Expert Alumni

NYC 1127 taxes

@Jackgabe  You are correct. The 1127 is for non-resident employees of the city, used to collect tax they would owe if they were residents. Something is not right in your return. You must mark that you are an employee of the city and a nonresident to activate the form. Once activated, your return should be correct.

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