The NYC-1127 is the personal income tax return for non-residents of NYC who are employees of the City of New York.
Under Section 1127 of the City Charter, if you are a City employee who lives outside the City and you were hired after January 4, 1973, as a condition of employment you agreed to pay to the City an amount equal to a City personal income tax on residents, computed and determined as if you were a resident of the City.
Section 1127 of the New York City Charter does not apply to you if you work for the Department of Education, City University of New York, District Attorneys' Offices, or New York City Housing Authority. Also, it does not apply if you are a NYC Housing Authority or Transit Police transferred into the New York Police Department.
To access this form in TurboTax, on the screen Take a look at New York City credits and taxes ,scroll down to New York City Employment Taxes and choose to start NYC Nonresident Employees Tax (NYC-1127) See the screenshot. Proceed with the interview until you reach the screen Print and File Form NYC-1127. There you will be able to print out your form.
Form 1127 isn't e-filed with your return, it gets printed and mailed.
http://www1.nyc.gov/site/finance/taxes/personal-income-tax-and-non-resident-employees.page
Hi Isabella- Thank you for the information. I have attempted to verify the following "Section 1127 of the New York City Charter does not apply to you if you work for the Department of Education, City University of New York, District Attorneys' Offices, or New York City Housing Authority." I cannot locate this information in the NYC 1127 instructions, and it seems that there are conflicting views amongst tax preparers.
If you can point me in the right direction that would be much appreciated.
Regards
Pete
Where can input the NYC 1127 withheld wages on the federal and the NY return?
Where can I input the withheld wages on the Federal and the NY returns?
You enter it on the same screen where you enter all the other W-2 information on you federal return and it will carry over to the state return.
I use Proseries and my client has a figure in Box 25 of the W2 but Proseries does not have that box for data input
Box 25 of the W-2? The W-2 does not have a box 25. It goes up only to box 20.
We don't support Proseries here in this Community (try here), but if you meant box 20 or below, perhaps there is a check box that says, "I have information in more boxes", which might expose more boxes.
Hello..
I work for MTA and wanted to know does this apply to me as well in regards to filing a form 1127. I am getting mixed answers. Some people that I asked stated that we don’t have to file as we are considered state and not city workers...and others are saying yes. The only thing I receive is a W-2 form. This is my first tax filing year living in NJ and work in NYC
You do not need to file Form NYC-1127. Generally, only New York City employees living outside of the 5 boroughs must file Form NYC-1127.
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.
@LenaH thank you so much! Omg! I filed my taxes two weeks ago. And filed that form! What wouldI have to do to correct it because it’s been accepted already! I’m not sure if that part is sent electronically I believe it may have been mailed through you guys. Also, would I have to pay another fee to get this fixed?? I’m kinda freaking out
Form NYC-1127 cannot be e-filed as it is unsupported by TurboTax for e-file. Although you can populate this form in TurboTax, you would have to had physically mail it. The form should be with your IT-201 if it was populated.
Since your NYC-1127 was never mailed out, then your return does not have to be amended.
What if the City employee lives in PA and has a side business in PA walking dogs on weekends. Does income from that side business get calculated into the amount they owe on the City waiver? It looks like Turbo Tax adds all of the city employees income no matter the source as the amount of tax liability to the City.
No, you can see the 2020 NYC-1127 Form is all about the NY income. The PA should not be included.
You need to review your NY state return and make sure that you have marked your PA income as not NY income.
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?
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:
The links below may be of assistance to you.
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?
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.
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?
what if i have 3 W2s but only one of them is related to NYC 1127.
how can i file the NYC 1127?
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.
{Edited | 3/14/2023 11:23 AM PST}
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?