New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter II - Income Taxes and Estate Taxes › Subchapter A - New York State Personal Income Tax Under Article 22 Of The Tax Law › Article 4 - New York State Income Tax Returns and Payment of Income Tax › Part 154 - Change Of Resident Status During Year › New York Taxable Income, New York Personal Service Taxable Income and New York State Minimum Taxable Income › Section 154.5 - New York taxable income, New York personal service taxable income and New York State minimum taxable income of an individual or of a trust for resident and nonresident periods-general rules

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, §§ 654(b), (g) and 603-A
(a)
Individual.
(1) The New York taxable income for the
						portion of the taxable year during which an individual was a resident must be
						determined, except for the special accruals required by section
						154.10  of this
						Part, under Article 2 of this Subchapter, as if such individual's taxable year
						for Federal income tax purposes were limited to the period of resident status.
						The New York taxable income for the remaining portion of the taxable year
						during which such individual was a nonresident must be determined, under
						Article 3 of this Subchapter, as if such individual's taxable year for Federal
						income tax purposes were limited to the period of nonresident status, subject
						to the provisions regarding special accruals set forth in sections
						154.10 and
						154.11 
						of this Part.
(2)
(i) In determining the New York taxable
						income of an individual for such individual's respective periods of residence
						and nonresidence, annual limitations with respect to specific items of income,
						gain, loss and deduction such as dividend exclusions, capital losses, medical
						expenses, contributions, casualty and theft losses, etc., applicable for
						Federal income tax purposes, are to be applied separately to the applicable
						Federal items attributable to the separate periods covered by the New York
						State resident and nonresident personal income tax returns required under this
						Part.
Example:
A husband and wife filed a joint Federal income tax
						  return for the calendar year 1985 showing Federal adjusted gross income of
						  $20,000, all from New York State sources. They were residents of New York State
						  from January 1, 1985 through June 30, 1985, and became nonresidents on July 1,
						  1985. They elected to file joint New York State resident and nonresident
						  personal income tax returns for their respective periods of residence and
						  nonresidence, properly reporting $10,000 on each New York State personal income
						  tax return. They itemized their deductions for Federal income tax purposes and
						  they also elected to itemize their deductions for New York State personal
						  income tax purposes. The taxpayers incurred and paid medical expenses of $1,950
						  during the taxable year and computed an allowable Federal medical deduction of
						  $950 determined in the following manner:
Prescription medicines and drugs
$ 400
Other medical expenses (including doctors,
									 hospitals, medical insurance premiums, etc.).
1,550
Total
$1,950
Less 5% of Federal adjusted gross income (5% of
									 $20,000)
1,000
Federal medical expense deduction
$ 950
Assuming that the medical expenses shown in the
						  following computation represent the amounts of those medical expenses incurred
						  during the respective periods of residence and nonresidence, there would be no
						  allowable medical deduction to claim on the New York State resident personal
						  income tax return and the allowable medical deduction to claim on the New York
						  State nonresident personal income tax return would be $1,025:
Resident
									 return
Nonresident
									 return
Medical expenses incurred: Prescription medicines
									 and drugs
$ 75
$ 325
Other medical expenses (including doctors,
									 hospitals, medical insurance premiums, etc).
350
1,200
Total
$ 425
$1,525
Less 5% of Federal adjusted gross income
500
500
New York State medical deduction allowed
-0
$1,025
(ii) Further, in determining the New York
						taxable income of an individual for such individual's respective periods of
						residence and nonresidence, the annual limitation with respect to the pension
						and annuity income modification allowed by section 612 (c)(3-a)  of the Tax Law
						(see section
						112.3[c][2] 
						of this Title) is to be applied separately to the separate periods covered by
						the New York State resident and nonresident personal income tax returns
						required under this Part. No proration of the annual limitation based on the
						period of time covered by each New York State personal income tax return is
						required to be made.
(3)
						The New York personal service taxable income for the portion of the taxable
						year during which an individual was a resident must be determined in accordance
						with the provisions of section 603-A of the Tax Law applicable to a resident
						individual, as if such individual's taxable year for Federal income tax
						purposes were limited to the period of resident status. The amount of each item
						entering into the computation of New York personal service taxable income of
						such taxpayer for the period of residence must also be determined in accordance
						with the provisions of this Part which apply to such items for the period of
						residence. The New York personal service taxable income for the remaining
						portion of the taxable year during which the individual was a nonresident must
						be determined in accordance with the provisions of section 603-A of the Tax Law
						applicable to a nonresident individual, as if such individual's taxable year
						for Federal income tax purposes were limited to the period of nonresident
						status. The amount of each item entering into the computation of New York
						personal service taxable income for the period of nonresidence must also be
						determined in accordance with the provisions of this Part which apply to such
						items for the period of nonresidence.
(4) The New York State minimum taxable income
						for the portion of the year during which an individual was a resident is
						determined, except for the special accruals required by section
						154.10  of this
						Part, under Part 122 of this Title, as if such individual's taxable year for
						Federal income tax purposes were limited to the period of resident status. The
						New York State minimum taxable income for the portion of the year during which
						an individual was a nonresident is determined, under Part 141 of this Title, as
						if such individual's taxable year for Federal income tax purposes were limited
						to the period of nonresident status, subject to the provisions regarding
						special accruals set forth in sections
						154.10 and
						154.11 
						of this Part.
(5) In determining
						the New York State minimum taxable income of an individual for such
						individual's respective periods of residence and nonresidence, the specific
						deduction allowed for each such period is the same as allowed by Parts 122 and
						141 of this Title. No proration of the specific deduction based on the period
						of time covered by each New York State personal income tax return is required
						to be made. Furthermore, in determining the New York State personal income tax
						applicable to the resident and nonresident periods in arriving at New York
						State minimum taxable income for each such period (see sections
						122.1[b][2]
						 and
						141.1[b][2] 
						of this Title), the New York State personal income tax on the combined New York
						taxable income or New York personal service taxable income for each period,
						minus the credits referred to in section
						122.1(b)(2) 
						and section
						141.1(b)(2),
						is to be apportioned on forms IT-220 filed for the separate periods in the
						ratio that the separately computed New York State personal income tax for the
						particular period, minus the credits referred to in section
						122.1(b)(2) 
						and section
						141.1(b)(2) 
						applicable to that particular period, is to the total of such separately
						computed New York State personal income taxes on the separate New York State
						personal income tax returns. The following example illustrates the application
						of the provisions of this paragraph (assume the taxable year is the calendar
						year 1979 and the taxpayer did not have any New York personal service taxable
						income).
New York taxable
									 income
New York State personal income
									 tax
Resident personal income tax return
$50,000
$5,560
Nonresident personal income tax return
10,000
450
Total of separate New York State personal income
									 taxes
$6,010
Combined New York taxable income
$60,000
New York State personal income tax on combined
									 New York taxable income
$6,960
Apportionment of New York State
personal income tax for New York State minimum
income tax purposes on forms IT-220 for the
						  resident
and nonresident periods:
Resident period:
$5,560/$6,010
														× $6,960 = $6,438.87
Nonresident period:
$
						  450/$6,010
														× $6,960 =
						  $521.13