NYC 1127 taxes

[MF99]

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.

[KarenM90]

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.  

[MF99]

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 · Accepted solution]

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.

[MF99]

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]

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]

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.)

[Andreas_hates_1127]

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]

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]

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]

@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.

[DIM6]

I am having the same problem. I work for the city and live in Westchester and turbo tax is giving me a huge refund which seems to go against the 1127 form which has set liability depending on salary. Why is turbo tax refunding all my money unless does the State refund it?? 

[DIM6]

Looking at the 2023 1127 form I should be paying a few thousand to Dept of Finance City. But turbo tax has me getting a total refund of all the city tax I paid. I am nervous this software is wrong. I can’t even see the 1127 form to see if it was filled out correctly

[DianeW777]

There are some key items important when you are completing this section of your New York (NY) return.

TurboTax will populate the information on Form NYC 1127 if you click on the box to have TurboTax do so. 

Then see the amount due/refund separately on that form. 

If you are required to file, please follow these steps to get to your NYC-1127:
 

1. Open your return.
2. Click on State on the left hand side.
3. Click Edit next to your NYS return.
4. Confirm you are a resident of NYS with no NYC residency.
5. Continue through the interview until the screen Take a look at New York credits and taxes.
6. Scroll down to the section named New York City Employment Taxes.
7. Click on Start next to NYC Nonresident Employees Tax (NYC-1127).
8. Follow the on-screen instructions.

@DIM6 

[Living20057]

I completed the information, did NYC non resident and did the NYC form 1127. Submitted my return but the NYC 1127 form didn't populate for printing. How do I find this form?