Award received from one state, live in another

[mtf1]

I received an Award from NYS but live in Florida. Do I have to pay tax and file in NYS?

[LenaH]

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:

• Single and claimed as a dependent on someone else's return: $3,100
• Single and not claimed as a dependent on someone else's return: $8,000
• Married filing jointly: $16,050
• Married filing separately: $8,000
• Head of household: $11,200
• Qualifying widow(er): $16,050

[mtf1]

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? 

[ColeenD3]

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

[Hal_Al]

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"? 

[mtf1]

It’s an Award for reporting NYS false claims. 

[Hal_Al]

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. 

[mtf1]

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!

[Hal_Al]

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,

[mtf1]

Thanks.

What are the positives/negatives regarding asking for a “private letter ruling”?  I know the IRS does these, does NYS? 

[ErnieS0]

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