Transcript Hornell-Corning-Steuben County Empire Zone

New York State
Department of Taxation and Finance
Nonresident Students and Scholars
Spring 2008 Workshop
Toll Free Tax Information
1-800-225-5829
(foreign language assistance is available)
VISIT OUR WEB SITE
www.nystax.gov
New York State (NYS) Income Taxes
If you did not have income and only need
to file Form 8843 to the IRS, then . . .
you do not need to file a New York State
income tax return.
NYS Conforms with Internal Revenue Service
 New York State (NYS) complies with ALL tax
treaties that the Internal Revenue Service uses.
 Your Federal (IRS) Taxable Income is the starting
point in computing your New York State income tax.
 New York-Source Income is Taxable Income you
received in New York State.
Note: If you earned income in any other state in
the U.S., please consult that state for income tax
filing requirements.
Nonresident Regulations for Personal Income Taxes
 Almost all international students and scholars
are in New York temporarily for a particular
purpose and, therefore, are nonresidents for
income tax purposes.
 However, if you do not have a domicile (a place
you intend to return to as your permanent home)
outside New York State and you maintained a
permanent place of abode (residence) in New York
State, you may be required to file a different New
York State income tax return.
Nonresident Regulations for Personal Income Taxes
Section 105.20(e)(1) of the Personal Income Tax
Regulations defines a "permanent place of
abode" as:
a dwelling place permanently maintained by the
taxpayer, whether or not owned by the taxpayer.
However, a place of abode, whether in New York
State or elsewhere, is not deemed permanent if it
is maintained only during a temporary stay for the
accomplishment of a particular purpose.
Nonresident Regulations for Personal Income Taxes
If the stay in New York is temporary and the stay in
New York is to accomplish a particular purpose,
the place of abode is not deemed permanent.
Section 105.20(e)(1) of the Regulations
contemplate that the term "temporary" means a
fixed and limited period as opposed to a stay of
indefinite duration.
Nonresident Regulations for Personal Income Taxes
Section 105.20(e)(1) of the Regulations
contemplate that the phrase "particular purpose"
means that the individual is present in New York
State to accomplish a specific assignment that has
readily ascertainable and specific goals and
conclusions, as opposed to a general assignment
with general goals and conclusions.
Do you have to file a New York State
IT-203 nonresident income tax return?
Yes, if you meet any of the following conditions::
 You had New York-source taxable income and
your New York adjusted gross income (Federal
amount column) is more than:
$7,500 for single individuals
$3,000 if single & can be claimed on another
taxpayer’s IRS tax return
$7,500 if married & filing separate tax returns
 You want to claim a refund.
Which NYS tax form do I need to file?
 Almost all nonresident alien students /scholars who
file a NYS income tax return will need to file:
• Form IT-203, “Nonresident and Part-year Resident
Income Tax Return”
AND
• Form IT-2 for wages (if you received a W-2)
 You DO NOT need to attach ANY of the federal (IRS) forms
or schedules unless you had a trade or business in New
York State for which special rules may apply.
Form IT-203 Filing Status:
Guidelines for Nonresident Aliens
 If you checked “single” on your 1040NR-EZ or
1040NR and you are required to file Form IT-203,
you MUST check “single” as your filing status on
your Form IT-203.
 If you checked “married” on your 1040NR-EZ or
1040NR, you must check “married filing separate”
as your filing status on your Form IT-203.
(“Married filing joint” is not allowed)
IT-203 General Guidelines
 Unlike the IRS tax return, NO PERSONAL
EXEMPTION is allowed for you or your spouse on
Form IT-203.
 You are allowed the SAME amount of
DEPENDENT EXEMPTIONS as claimed on your
IRS tax return.
 Unlike the IRS tax return, you may ALL claim a
STANDARD DEDUCTION.
The NYS Standard Deduction Amount
 2007 NYS standard deduction amount:
$7,500 for single individuals
$3,000 if single & can be claimed on
another taxpayer’s federal (IRS) return
$7,500 if married & filing separate tax
returns
IT-203 General Guidelines
 If any part of your scholarship or fellowship was
included as INCOME (for room and board) on your
IRS tax return, then enter it on the line for OTHER
INCOME (line 15) on your NYS tax return, IT-203.
 If you included your 2006 State Income tax refund
as income on your IRS tax return, you can subtract
it (line 24) on your NYS tax return, IT-203.
 Only enter the taxable income from the IRS tax
return onto the NYS tax return, IT-203
W-2 from the State of New York
W-2 from the State of California
What do I do with the state copy of the W-2?
 If you are filing a NYS tax return, and have (a) W-2(s),
transfer your W-2 information onto NYS Form IT-2.
 DO NOT attach a W-2 to your NYS tax return (IT-203).
Keep the state copy for your records.
 DO NOT forget to complete the NYS withholding
information on the IT-2.
 Attach the IT-2 to your IT-203.
Note: Obtain Form IT-2 from www.nystax.gov
Transfer ALL W-2 Information to Form IT-2
{
You must complete IRS Form
1040NR-EZ or 1040NR
before filling out Form IT-203.
Form 1040NR-EZ – From Form 1040NR or 1040NR-EZ you
will transfer the taxable income amounts only
Line 6 includes Scholarship and
Wages reported on Form 1042-S
and NOT transferred to the NYS
Form IT-203. This amount is
exempt from treaty.
This column, lines 3-10, is
taxable income and is
transferred to NYS income
tax return in the Federal
Amount Column.
How are NYS Nonresidents are Taxed?
 First, you must compute a base tax on ALL your taxable
income as shown on the IRS tax return that is transferred to
the NYS federal amount column.
 Once you compute the tax, then you must determine how
much of your “computed tax” is attributed to NYS sources.
 To determine this, you divide your NYS income by your
federal income. Then take that answer and multiply it by the
tax you computed. This is your NYS income tax.
Completing IT-203
Complete Lines 1 through 18. Transfer the amounts from Form 1040NR-EZ or
1040NR to the Federal Amount column. Put income you earned in New York State
in the NYS amount column.
Use your Federal Adjusted gross income. Then determine your NYS adjusted gross income.
If you included your state refund for tax year 2006 as income on Form 1040NR-EZ or
1040NR, subtract it on line 24 to arrive at NYS taxable income.
__________________________________________________________________________
Line 38 NYS taxes– see next slide for Tax Chart
If you have a dollar amount on line 37 (NYS taxable income), find your
income tax in the tables beginning on page 69 of the IT-203 instructions
Line 39 – household credit
Who is entitled to a NYS household credit?
Individuals who:
 Cannot be claimed on another person’s federal tax return and
if your income on Form IT-203 is:
• Single and your federal amount column
(line 18) is $28,000 or less
• Married and federal amount column
(line 18) is $32,000 or less
 The household credit is NOT refundable and will only reduce
your NYS tax.
 See page 40 in the IT-203 Instructions booklet for household
credit chart
NYS household credit chart for a single person who CANNOT
be claimed on another taxpayer’s federal income tax return
Computing NYS tax – line 44 multiplied by line 45
New York State and Local Sales and Use Tax
You owe a sales and use tax if:
You purchase property or a service delivered to YOU in
New York State without payment of sales and use tax (Ex.
Internet, catalog purchases).
Most tangible personal property is subject to New York and
Local Sales tax.
Examples: clothing, jewelry, electronic equipment,
furniture, prewritten software, books (excluding text books),
compact disks, videos, etc.
For more information, see Publication 774 – Purchasers
Obligations to pay Sales and Use Tax Directly to the Tax
Department, Questions and Answers
Line 56 (IT-203) is used to report the amount of sales tax you
owe. If you do not owe sales tax, enter “0” on line 56.
On page 64 of the IT-203 Instructions booklet, there are
instructions for computing the amount of use tax due if you owe.
If you DO NOT owe Sales and Use tax, enter a ZERO on line
56. DO NOT leave it Blank.
page 4 of IT-203 – line 62 is from IT-2
Sign and Date Return
JOY KIM
Student
2/19/08
Mail your New York State income tax
return by April 15, 2008
Mail to:
State Processing Center
PO BOX 61000
Albany, New York 12261-0001
Additional information for discussion
Reporting Sales Tax ONLY
 If you are not required to file a New York State
personal income tax return (IT-203), you may report
the amount of sales and use tax on form ST-140.
 This form is due April 15, 2008.
Income Tax Filing TIPS
 Remember to:
• Sign your income tax return.
• Enter your Social Security Number on your
income tax return.
• Complete Form IT-2 from your W-2
information and attach the IT-2.
Thank you for coming!
The material included in this
presentation is intended for
nonresident alien students and
scholars in New York State who are in
the U.S. on F-1 or J-1 visas.
For more information, please refer to
NYS Division of Taxation and Finance
forms, instructions and publications.