What is the form nyc-1127?

[alvinksu]

Hi, my wife works for the city. In the past, 1127 is on box 19, Local income tax and it gets added to the state-withheld tax automatically. Since 2020, it was moved to box 14, others.  So I manually added it to box 19 so it can be deducted. Last year, I received a letter from the state to correct this. DId the tax code for the state change that removes the 1127 from Local Income tax?

[JosephS1]

No, nothing has really changed except in the way that the 1127 withholding is shown on the W-2.  Your wife should have received a separate W-2 specifically for her 1127 earnings and withholdings that she would file with her 1127 return.

Enter the NYC-1127 withholding in Box 14 and at the drop-down arrow scroll down towards the bottom and click on "other deductible state of local tax".  That will include the tax for your Schedule A should you be able to itemize deductions

When you begin your NYS return, to enter the 1127 information please follow these steps:

1. When you get to "Credits and other taxes", click on start or update at the credits and other taxes box.
2. Scroll down to "New York City and Metro Commuter Taxes" and click on "Start or Update"
3. Follow the steps and answer the questions until the 1127 information is entered until you arrive at the last page and note the NYC-1127 address.  NYC-1127 cannot be e-filed through TurboTax so must be e-filed directly with the NYC Department of Finance or mailed.
4. Click Continue and you will arrive back at the summary Page.

The links below may be of assistance to you.

NYC Department of Finance

Form 1127

@alvinksu 

[alvinksu]

Thank you Joseph. My TurboTax only have "New York City Employment Taxes and under that, NYC Nonresident Employees Tax (NYC-1127) so I assume that's the same one?

[JosephS1]

Yes correct.  They should both be the same number.  If they differ, you may want to consider contacting the NYC Dept of Finance.  Sometimes they withhold both resident tax and 1127 tax.  Just an FYI.

@alvinksu 

[kyle72]

i am a city worker and also i have 3 W2s. 

but only one of them is a NYC1127 related. 

so, how can i file the NYC 1127 form because i have another incomes not related to NYC1127? 

[kyle72]

what if i have 3 W2s but only one of them is related to NYC 1127.

how can i file the NYC 1127?

[Cynthiad66]

This form is filed separately from the NY tax return and can also be e-filed.

To initiate form 1127 you will have to go to your NY tax return then NY Credits and Taxes where there is a section called NYC Employment Taxes.  Go here to enter information about your NYC employment in 2022.

This form is not filed with the NYS return. It can be e-filed online on the NYS website 

This is a link to the form:  Form 1127 NYC - Non-resident

Also, please enter all W-2s as received.    It is a special tax for non-resident NYC workers.  

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.  Enter the forms as received and TurboTax will place them on the NY return where needed.  However the NYC 1127-Nonresident form needs to be completed separately and e-filed directly through NY website above.

@kyle72

{Edited | 3/14/2023 11:23 AM PST}

[kyle72]

Thank you, Cynthia. 

it is very helpful.

i have more questions about it.

1)my husband is not a city worker and does not have any income. how can i exclude my incomes not related to NYC1127 without excluding my husband to caculate state taxable income?

2)should i calculate mannually the state taxable income that is not included in the NYC 1127 tax?

[Cynthiad66]

You can calculate manually if you want but realize that you will no longer qualify for the accuracy guarantee from TurboTax.

[taxquestion27]

Thank you so much for this! I had been searching high and low for this piece of information. 
"You are considered a NYC employee if you are employed in a New York City Government agencies such as NYPD, FDNY, Department of Finance, Department of Sanitation. The MTA is not a government agency."  

^This was the missing piece of the puzzle and this specification helped me realize 1127 does not apply to me as I work in NYC (am an employee in NYC) but NOT as an EMPLOYEE OF THE CITY GOVERNMENT AGENCIES. No one clarified that in any of the language written on instructions for the 1127 or even through the turbotax assessment. 

[stevengel]

I am a NYC BD OF ED school teacher.

I reside out side of NYC.

On form 1127 am I liable for nyc income tax

[LenaH]

No, you are not responsible for Form NYC-1127. Section 1127 of the New York City Charter does not apply to you if you work for the Department of Ed...

@stevengel