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Category: New York

New York Subtractions from Income

New York’s 529 College Savings Program Deduction (Line S-103)

  • Form IT-201 Filers: Do not enter this code on Form IT-225. Instead, enter the subtraction modification on line 30 of Form IT-201, as applicable. See the instructions for Form IT-201.
  • Form IT-203 Filers: If in 2015 you, as an account owner, made contributions to one or more tuition savings accounts established under New York’s 529 college savings program, then enter that amount, up to $5,000 for an individual, head of household, qualifying widow(er), or married taxpayers filing separately, or up to $10,000 for married taxpayers filing a joint return, in the Total amount column only
  • Part-year resident individuals only: Also enter in the New York State allocated amount column any such contribution(s) made while a resident of New York State

 

New York's 529 College Savings Program Distributions (Line S-104)

  • Form IT-201 filers: Do not enter this code on Form IT-225. Instead, enter the subtraction modification on line 30 of Form IT-201, as applicable. See the instructions for Form IT-201.
  • Form IT-203 filers: If in 2015 you, as an account owner (or beneficiary), made a withdrawal (or received a withdrawal) from an account established under New York’s 529 college savings program, and part of the withdrawal was included in your federal AGI, then enter that amount in the Total amount column only.
  • Part-year resident individuals only: Also enter in the New York State allocated amount column any such withdrawal(s) made while a resident of New York State.

 

 Start-Up NY wages (S-101)

To be eligible for the wage exclusion you must:

  • work exclusively at the approved business’s location within the tax-free NY area during the tax year (generally, a calendar year);
  •  work at the approved business’s location within the tax-free NY area for at least six months during the calendar year;
  •  be employed by an approved business that is in compliance with the START-UP NY program; and
  • be employed by the approved business in a net new job created by the business in the tax-free NY area.

See the instructions for Form IT-225 to figure the deduction amount.

 

Pension and annuity income exclusion (S-106)

Do not enter this code on Form IT-225. Instead, enter the subtraction modification on Form IT-201, line 29, or Form IT-203, line 28, as applicable. See the instructions for the return you are filing. New York State Tax Law allows for a pension and annuity income exclusion, but not more than $20,000, for pension and annuity income included in federal taxable income.

Do not enter any pension received from New York State or it’s political subdivisions.

 

Pensions of New York State and local governments and federal government (S-107)

Do not enter this code on Form IT-225. Instead, enter the subtraction modification on Form IT-201, line 26, or Form IT-203, line 25, as applicable. See the instructions for the return you are filing.

 

Accelerated death benefits received that were includable in federal AGI (S-109)

Enter any amount you included in federal income that was received by any person as (a) an accelerated payment or payments of part or all of the death benefit or special surrender value under a life insurance policy, or (b) 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)

Enter contributions you made, not deducted elsewhere, (a) to preserve, improve, and promote the Executive Mansion as a New York State historical resource, or (b) 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 income or New York itemized deductions.

 

Distributions made to a victim of Nazi persecution (S-111)

Enter amounts included in federal income from an eligible settlement fund or grantor 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 or a decedent’s 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 grantor trust).

 

Items of income related to assets stolen from or otherwise lost to a victim of Nazi persecution (S-112)

Enter items of income included in federal income 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 considered a victim of Nazi persecution, or a spouse or descendent of a victim.

 

Professional service corporation shareholders (S-113)

If in a taxable year ending after 1969 and beginning before 1988, you were required to add to your federal income deductions made by a plan acquired through membership in a professional service corporation (PSC), then enter the portion of those deductions that can be allocated to pension, annuity, or other income you received from the plan, and were included in your federal income.

 

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.

 

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 enter the amount of the deferred gain. This amount may not exceed the amount of the gain included in your federal income.

  • 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 a New York State 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 a New York State tax return, then you must file an amended tax return to claim the deduction.
  • If the deferred gain must be included in a subsequent year’s tax return because the replacement QETI has been sold, then enter that amount as an addition to federal income (see A-110).

 

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 income 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 higheradjusted basis for NYS income tax purposes than for federal tax purposes when sold; then enter the lesser of the gain itself or the difference in the adjusted bases.

Individuals: 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)

Enter any income (including annuity income) or gain included in your federal income 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).

 

Military combat pay (S-118)

Enter military pay you included in federal income that you received for active service as (or on behalf of) a member in the armed services of the United States in an area designated as a combat zone.

 

Military pay (S-119)

Form IT-203 filers: Based on the Servicemembers’ Civil Relief Act, military pay received by a nonresident, or received by apart-year resident during the part-year resident’s nonresidentperiod, cannot be used to determine the amount of New YorkState personal income tax the nonresident or part-year residentmilitary member (or the member’s spouse) must pay.

Total amount column

Nonresidents: Enter the total amount of military pay included in the Federal amount column on line 1 of your Form IT-203.

Part-year residents: Enter the total amount of military pay included in the Federal amount column on line 1 of your Form IT-203 that you received during your nonresident period.

 

New York Higher Education Loan Program (HELP) (S-120)

Enter any interest you paid in 2015 on loans made to you under HELP.

 

Certain investment income from U.S. government agencies (S-121)

Enter any interest or dividend income on bonds or securities of any U.S. authority, commission, or instrumentality that is exempt from state income taxes under federal laws (but included in federal income).

 

Certain railroad retirement income and railroad unemployment insurance benefits (S-122)

Enter supplemental annuity or Tier 2 benefits received under the Railroad Retirement Act of 1974, or benefits received under the Railroad Unemployment Insurance Act that are exempt from state income taxes under federal laws (but that you included in your federal income).

 

Certain investment income exempted by other New York State laws (S-123)

Enter any interest or dividend income from any obligations or securities authorized to be issued and exempt from state taxation under the laws of New York State (for example, income received from bonds, mortgages, and income debenture certificates of limited dividend housing corporations organized under the Private Housing Finance Law).

 

Disability income exclusion (S-124)

Complete Form IT-221, Disability Income Exclusion, to compute your disability income exclusion if you were not yet 65 when your tax year ended, and you retired on disability, and you were permanently and totally disabled when you retired.

 

Interest income on U.S. government bonds (S-125)

Do not enter this code onForm IT-225. Instead, enter the subtraction modification onForm IT-201, line 28, or Form IT-203, line 27, or Form IT-205,line 67, as applicable. See the instructions for the return you arefiling.

 

New York organized militia income (S-126)

Enter income that you received (or an estate or trust received on behalf of a member) while serving in the New York State organized militia for performing active service within NYS due to either (1) state active duty orders issued in accordance with Military Law section 6.1, or (2) 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 income. Do not include any income you received 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.

 

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 a loss on the sale would have been realized if a federal estate tax return had been required, then enter the amount of the loss.

 

Native American income exclusion (S-128)

If you are an enrolled member of a tribe or nation recognized by the United States or by New York State, and you are a Native American who works and lives on a reservation, then enter income included in your federal AGI and earned on that reservation.

 

Special accruals (S-129)

If you have or had a change in resident status you may have to use special accrual rules to compute your tax. Income accrues to you as a taxpayer when the amount becomes fixed and determinable and you have an unrestricted right to receive it.An accrued expense is a cost that has been incurred but not yet paid. See the instructions for the return you are filing for more information on special accruals. If you are subject to the special accrual rules, then enter your accrued item of income, gain, loss, or deduction. Also see A-115.

 

Volunteer firefighter or ambulance worker length of service award (S-130)

If you are at least 59½ years old, then you may deduct up to the amount included in your federal gross income for any award paid from a length of service defined contribution plan or defined benefit plan as provided for in Articles 11-A, 11-AA, 11-AAA and 11-AAAA of the General Municipal Law, provided that the award is not distributed as a lump sum amount as defined in section 402(e)(4)(A) of the IRC and taxed under section 603 of the NYS tax law.

 

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.

 

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.

 

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 enter 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.

Limitation

 

 If your age at the end of 2015 was: You cannot claim more than:
 40 or younger $380
 at least 41 but not older than 50 $710
 at least 51 but not older than 60 $1430
 at least 61 but not older than 70 $3800
 71 or older $4750

 

 

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.