Category: New York
New York Subtractions from Income
New York’s 529 College Savings Program Deduction/Earnings Distributions (Line S-30)
If you, as an account owner, made contributions to one or more tuition savings accounts established under New York’s 529 college savings program enter the amount up to $5,000 ($10,000 for married taxpayers filing a joint return) on line 1 of the worksheet found in the IT-201 Instructions.
If you made a withdrawal and part of the withdrawal was included in your federal AGI (line 21 of federal Form 1040), then enter that amount on line 2 of the worksheet.
Taxable Pensions: Over 59 1/2 (Line S 29)
If you entered an amount on line 9 or 10 of your state return and you were 59 1/2 before January 1, 2014, enter the qualifying pension and annuity income included in your 2014 federal AGI, but not more than $20,000. If you became 59 1/2 during 2014, enter only the amount received after you became 59 1/2, but not more than $20,000 If you received pension and annuity income and are married, or received pension and annuity income as a beneficiary, please note: You may not take a pension and annuity income exclusion that exceeds $20,000 per person and you are not able to apply any of your pension income exclusion to your partner. Please read IT - 201 instructions regarding Taxable Pensions for additional information. IT - 201 Instructions.
Taxable Pensions: NYS/Local and Federal Government (Line S-26)
If you received a pension or other distribution from a NYS or local government pension plan or federal government plan and that amount was included in your federal AGI, enter any pension you received or distributions made to you from a pension plan which represents a return of contributions in a year prior to retirement, as an officer, employee, or beneficiary of an officer of employee of
- NYS including State and City University of New York and NYS Education Department employees who belong to the Optional Retirement Program. Optional Retirement Program members may only subtract that portion attributable to employment with the State or City University of New York or the NYS Education Department.
- Certain public authorities, including: Metropolitan Transit Authority (MTA) Police 20-Year Retirement Program; Manhattan and Bronx Surface Transit Operating Authority (MABSTOA); and Long Island Railroad Company.
- Local governments within the state; and
- The United States, its territories, possessions (or political subdivisions thereof), or any agency or instrumentality of the United States (including the military), or the District of Columbia.
Wage and Salary Expenses Allowed as Federal Credits but not as Federal Expenses (Line S-24)
If you took a federal credit for which a deduction for wages and salary expenses is not allowed under IRC section 280C, then include the amount of those wages you did not deduct on your federal return.
Sales or Dispositions of Assets Acquired Before 1960 with Greater State than Federal Bases (S-116)
New York State income tax laws prior to 1960 and current laws regarding depletion can result in a difference in the state and federal adjusted bases of certain assets. If you realize a federally taxable gain from the sale of an asset that had a higher adjusted basis for state tax purposes, you may make an adjustment to reduce your gain for state tax purposes. If your federal AGI included gain that was from either:
- property that had a higher adjusted basis for NYS income tax purposes than for federal tax purposes on December 31, 1959 (or on the last day of a fiscal year ending during 1960); or
- property that was held in connection with mines, oil or gas wells, and other natural deposits and that had a higher adjusted basis for NYS income tax purposes than for federal tax purposes when sold; then include the lesser of the gain itself or the difference in the adjusted bases.
Note: If you divide gain with respect to jointly owned property between you and your spouse, then you must also divide any subtraction for different adjusted bases between you and your spouse.
Income Earned Before 1960 and Previously Reported to New York State (S-117)
Include any income (including annuity income) or gain you included in your 2014 federal AGI that you (or the decedent or estate or trust from whom you acquired the income or gain) properly reported to NYS prior to 1960 (or during a fiscal year ending in 1960.
Cost Depletion (S-206)
If you are making addition A-202 for any percentage depletion, then include the cost depletion that IRC section 611 would allow on that property without any reference to either IRC section 613 or 613-A.
Special Depreciation Expenditures (S-207)
You may carry over excess expenditures you incurred in taxable years beginning before 1987 in connection with depreciable, tangible business property located in New York State to the following tax year or years, and deduct such expenditures in computing your New York AGI for that year or years, if the expenditures exceed your New York AGI for that year before the allowance of those expenditures. Complete Form IT-211, Special Depreciation Schedule, to compute the amount to include. Attach Form IT-211 to your return.
Loss From the Sale or Disposition of Property That Would Have Been Realized if a Federal Estate Tax Return Had Been Required (S-127)
Note: This subtraction cannot be made for property acquired from decedents who died on or after February 1, 2000.
If you acquired a decedent’s property and, as valued by the executor, the estate was insufficient to require a federal estate tax return, and if a loss on the sale would have been realized if a federal estate tax return had been required, then include the amount of the loss.
Gain to be Subtracted From the Sale of a New Business Investment Reported on your Federal Income Tax Return (S-114)
If you reported a capital gain on your federal income tax return from the sale of a new business investment, as defined in NYS Tax Law section 612(o), that was issued before 1988 and was held at least six years, then include one-hundred percent (100%) of that federal gain.
New York Depreciation Allowed (S-210)
If you claimed ACRS depreciation on your federal return for:
- property placed in service during tax years 1981 through 1984 (except IRC section 280F property); or
- property placed in service outside New York State during tax years 1985 through 1993 (except IRC section 280F property) and you elect to continue using IRC section 167 depreciation (see TSB-M-99(1)I);
then include the amount of your New York depreciation. Complete and attach Form IT-399, New York State Depreciation Schedule, to your return.
ACRS (Year of Disposition Adjustment) (S-211)
If you disposed of property in 2014 that was depreciated for federal purposes using ACRS, and if your total federal ACRS deduction exceeds your New York depreciation deduction for that property, then complete Part 2 of Form IT-399, New York State Depreciation Schedule, to compute the amount to include.
S Corporation Shareholders (S-301)
If you reported a federal gain or loss because of the disposition of stock or indebtedness of an S corporation, and if that S corporation was a New York C corporation for any tax year beginning after December 31, 1980 (in the case of a corporation taxable under Article 9-A, general business corporation tax), or December 31, 1996 (in the case of a corporation taxable under Article 32, banking corporation franchise tax), then include the reduction in basis of the stock or indebtedness that is due to the application of IRC section 1376(b) (as in effect for tax years beginning before January 1, 1983) and 1367(a)(2)(B) and (C) for each tax year that the New York election was not in effect.
If, with respect to stock described above, you made any New York additions to federal AGI required under A-303 on page 67, then include the total of those additions. See New York Tax Law section 612(b)(20).
S Corporation Shareholders — Pass-Through Income (S-302)
If you included in your federal AGI any S corporation pass-through income pursuant to IRC section 1366 and the corporation is a New York C corporation, then include the pass-through income.
IRC Section 168(k) Property Depreciation (S-213)
With the exception of resurgence zone property and New York liberty zone property described in IRC section 1400L(b)(2), New York State does not follow the federal depreciation rules for IRC section 168(k) property placed in service inside or outside New York State on or after June 1, 2003. If you claimed a depreciation deduction for such property, and if no exception for resurgence zone or New York liberty zone property applies, then complete Part 1 of Form IT-398, New York State Depreciation Schedule for IRC Section 168(k) Property, to compute the amount of New York depreciation to include. Attach Form IT-398 to your return.
Accelerated Death Benefits Received That Were Includable in Federal Adjusted Gross Income (S-109)
Include any amount you included in your federal AGI that was received by any person as:
- an accelerated payment or payments of part or all of the death benefit or special surrender value under a life insurance policy, or
- a viatical settlement, as a result of a terminal illness (life expectancy of 12 months or less), or of a medical condition requiring extraordinary medical treatment, regardless of life expectancy.
Contributions for Executive Mansion, Natural and Historical Resources, Not Deducted Elsewhere (S-110)
Include contributions you made, not deducted elsewhere to:
preserve, improve, and promote the Executive Mansion as a New York State historical resource, or
to the Natural Heritage Trust to preserve and improve the natural and historical resources of NYS.
Do not include amounts you deducted in determining federal AGI or New York itemized deductions.
Long-Term Residential Care Deduction (S-105)
If you were a resident in a continuing-care retirement community that was issued a certificate of authority by the NYS Department of Health, then include the portion of the fees you paid during the year that were attributable to the cost of providing long-term care benefits to you under a continuing care contract. However, do not enter more than the premium limitation shown for your age in the Limitation table below. If you and your spouse both qualify, you may each take the subtraction. However, you cannot claim any unused part of your spouse’s subtraction.
If your age at the end of 2014 was:
You cannot claim more than:
40 or younger
At least 41 but not older than 50
At least 51 but not older than 60
At least 61 but not older than 70
71 or older
Distributions Made to a Victim of Nazi Persecution (S-111)
Include amounts you included in your federal AGI from an eligible settlement fund or granter trust as defined by section 13 of the Tax Law (because you were persecuted or targeted for persecution by the Nazi regime), or distributions received because of your status as a victim of Nazi persecution, or as a spouse or heir of the victim (successors or assignees, if payment is from an eligible settlement fund or granter trust).
Items of Income Related to Assets Stolen from, Hidden from, or Otherwise Lost to a Victim of Nazi Persecution (S-112)
Include items of income you included in your federal AGI attributable to, derived from, or in any way related to assets stolen from, hidden from, or otherwise lost to a victim of Nazi persecution immediately prior to, during, and immediately after World War II, including but not limited to interest on the proceeds receivable as insurance under policies issued to a victim of Nazi persecution by European insurance companies immediately prior to and during World War II, or as a spouse or heir of such victim.
However, do not include income attributable to assets acquired with assets as described above or with the proceeds from the sale of any asset described above. Also, do not include any income if you were not the first recipient of the asset, or if you are not a victim of Nazi persecution, or a spouse or descendant of a victim.
Qualified Emerging Technology Investments (QETI) (S-115)
In general, you may defer the gain on the sale of QETI that are (1) held for more than 36 months, and (2) rolled over into the purchase of replacement QETI within 365 days from, and including, the date of sale. However:
- You must recognize any gain to the extent that the amount realized on the sale of the original QETI exceeds the cost of replacement QETI;
- You must add back any deferred gain in the year you sell the replacement QETI; and
- The gain deferral applies only to QETI sold on or after March 12, 1998, that was held for more than 36 months.
If you elect to defer the gain from the sale of QETI, then include the amount of the deferred gain. This amount may not exceed the amount of the gain included in your federal AGI.
- If the purchase of replacement QETI within the 365-day period occurred in the same taxable year as the sale of the original QETI, or in the following taxable year and before the date you filed your personal income tax return, then, take the deduction on that return.
- If the purchase of replacement QETI within the 365-day period occurred in the following taxable year and on or after the date you filed your personal income tax return, then you must file an amended return to claim the deduction (see Form IT-201-X, Amended Resident Income Tax Return).
- If the deferred gain must be included in a subsequent year’s tax return because the replacement QETI has been sold, then include that amount as an addition to federal AGI.
Sport Utility Vehicle Expense Deduction Recapture (S-212)
If you claimed an IRC section 179 deduction with respect to a sport utility vehicle that weighs more than 6,000 pounds, and you had to recapture any amount of that deduction in computing your federal AGI for 2014, and if you are not an eligible farmer as defined for the farmers’ school tax credit, then include the recapture amount. (See addition A-208 for the definition of a sport utility vehicle.)
New York State Organized Militia Income (S-126)
Include income that you received as a member of the New York State organized militia for performing active service within NYS due to either state active duty orders issued in accordance with Military Law section 6.1 or federal active duty orders, for service other than training, issued in accordance with Title 10 of the United States Code, that was included in your federal AGI. Do not include any income you receive for regular duties in the organized militia (for example, pay received for the annual two-week training program). Members of the NYS organized militia include the New York Army National Guard, the New York Air National Guard, the New York Naval Militia, and the New York Guard.
Safe Harbor Leases (S-208)
Include any amount you included in federal AGI (except for mass transit vehicles) solely because you made the safe harbor election on your federal return for agreements entered into before January 1, 1984.
Safe Harbor Leases (S-209)
Include any amount that you could have excluded from federal AGI (except for mass transit vehicles) had you not made the safe harbor election on your federal return for agreements entered into before January 1, 1984.
IRC Section 168(k) Property (Year of Disposition Adjustment) (S-214)
If you disposed of IRC section 168(k) property placed in service inside or outside New York State on or after June 1, 2003 (except for resurgence zone property, and New York liberty zone property described in IRC section 1400L(b)(2)), and your total federal depreciation deduction was more than your New York federal depreciation deduction for that property, then complete Part 2 of Form IT-398, New York State Depreciation Schedule for IRC Section 168(k) Property, to compute the amount of the disposition adjustment to include.
Living Organ Donors (S-132)
If during the tax year you were a living donor who donated one or more of your organs to another person for human organ transplantation, then include unreimbursed expenses incurred for travel, lodging, and lost wages, up to a maximum of $10,000. You may claim this subtraction only once during your lifetime.
Married taxpayers: If you both qualify, you and your spouse can each claim a subtraction up to $10,000. However, you cannot claim any unused part of your spouse’s subtraction.
Military Combat Pay (Line S-118)
Include military pay you included in your federal adjusted gross income that you received for active service as a member in the armed services of the United States in an area designated as a combat zone.
New York Higher Education Loan Program (HELP) (S-120)
Include any interest you paid in 2014 on loans made to you under HELP.
Build American Bond (BAB) Interest (S-102)
Include any interest income attributable to a BAB issued by New York State or its local governments that you included in your federal AGI.
Click here to access the link to the NY IT-201
Click here to access the link to the NY IT-225 for additional information about subtractions from NY income.