MFJ Federal, MFS for NY State - best way to submit & process state return?

[softball93]

I’m running into a New York state filing issue and would appreciate guidance. My wife and I filed our federal return jointly (MFJ) using TurboTax, and it has already been accepted by the IRS.

For New York:

• I was a full-year NY (and NYC) resident
• My wife did not live in NY and had no NY income

From what I understand, filing jointly in NY would treat both of us as full-year residents, which incorrectly pulls her income into NY/NYC tax. To avoid that, I created a separate NY return (Married Filing Separately) that includes only my income.

Because of this setup, TurboTax would not allow me to e-file NY, so I selected file by mail.

I have a couple of questions:

1. Paper filing requirement
   • TurboTax and NY guidance suggest e-filing is required when using software, but e-file doesn’t seem possible in this case due to the mismatch (federal MFJ vs NY MFS).
   • Is mailing the NY return acceptable in this situation, and will it be processed normally?
   • Also, when mailing, do I need to include a copy of my federal return? If so, should it be:
     • The originally filed MFJ federal return, or
     • The “mock” MFS federal return used to generate the NY numbers?
2. Refund method (paper filing)
   • Since I’m mailing the return, can I still request direct deposit by filling in bank info on IT-201?
   • Or will NY default to issuing a paper check, regardless of what’s entered?

[DavidD66]

You are correct that you cannot file your MFS New York return after filing a federal joint return.  Yes, it is perfectly acceptable to mail your New York return.  You must include a copy of your Federal tax return - the one you actually filed, not the mock return.  Check the New York instructions, but most states only require you to include a copy of Form 1040 (including schedules) and Schedule A.  And yes, you can request direct deposit by filling in the banking information on Form IT-201.  I recommend you send it via certified mail, return receipt requested.

[softball93]

And IT-201 is the correct form to submit for my MFS NY state return, correct? IT-203 would only be relevant if I wasn't a full year resident of New York?

[Karis_F]

Yes. Form IT-201 is the New York Resident Income Tax Return for full-year residents. Form IT-203 is for part-year residents and nonresidents.

Here are the instructions for Form IT-201 for more information.

[softball93]

Where can I find instructions for everything that needs to be included with my NY State tax return if filing it by mail? I assume I can include everything TurboTax provided me when e-filing my federal tax return? Would anything be missing?

[AmyC]

If you decide to mail the return, select the print option for the state return. It will print out the state forms you need. For mailing:

• Sign and date tax form
• Include all pages of the of the main tax form
• Attach forms and schedules, like IT-225 (modifications) or IT-213 (child tax credit)
• IT-2 - wages summary
• Do not include worksheets.  
• Do add a note that you had to paper file since e-filing is not supported with a different status from federal.
• Include IT 201V if you owe along with your payment OR pay online at Make a payment - Tax.NY.gov
• Mail certified with no signature required.

NY and the IRS share information so NY will know you filed MFJ with the federal. 

Check out this article, How do I prepare a joint federal return and separate state returns?

NY instructions