Category: New York
New York Additions to Income
New York City flexible benefits program (IRC 125)
If a federal Form W-2 wage and tax statement(s) show(s) that an amount was deducted or deferred from your salary under a flexible benefits program established by New York City or certain other New York City public employers on your or a decedent’s behalf, then enter this amount. Certain other New York City public employers include:
• City University of New York;
• NYC Health and Hospitals Corporation;
• NYC Transit Authority;
• NYC Housing Authority;
• NYC Off-Track Betting Corporation;
• NYC Board of Education;
• NYC School Construction Authority;
• NYC Rehabilitation Mortgage Insurance Corporation;
• Manhattan and Bronx Surface Transit Operating Authority; and
• Staten Island Rapid Transit Authority.
Income from certain obligations of U.S. government agencies or instrumentalities
If, during the tax year, any interest or dividend income from any U.S. government authority, commission, or instrumentality that federal laws exempt from federal income tax but do not exempt from state income tax was received or credited, then enter that income. If you are uncertain whether a particular federal bond or obligation is subject to state income tax, contact the Tax Department.
Special additional mortgage recording tax deduction
If special additional mortgage recording tax was deducted in computing your federal income, and the special additional tax was paid before January 1, 1988, and in a prior year you were allowed a New York State personal income tax credit for that tax, then enter the amount deducted. Do not make the addition for the tax paid to record a mortgage on or after January 1, 2004, even if you claimed a credit for that tax.
Special additional mortgage recording tax basis adjustment
If property on which you paid a special additional mortgage recording tax was sold or disposed of, and a special additional tax was paid before January 1, 1988, and in a prior year you or the partners claimed a New York State personal income tax credit for that tax, then enter the amount, if any, of the federal basis of the property that was not adjusted to reflect the amount of the credit allowed.
Sales or dispositions of assets acquired from decedents
Note: This adjustment is not required for property acquired from decedents who died on or after February 1, 2000. Assets of decedents can sometimes have different bases for state and federal tax purposes. This requires adjustments in the gain or loss on the sale or disposition of those assets. If during the tax year, there was a sale or other disposition of any assets that had been inherited or sold or disposed of directly by the estate of a decedent; and
• the estate of the decedent was not large enough to require a federal estate tax return; and
• the executor or administrator of that estate had valued those assets for New York State income tax purposes at less than their value for federal income tax purposes, then enter the difference between (a) the gain or loss on that sale or disposition that was included in your federal income for the tax year and (b) the gain or loss that would have resulted if the assets had been valued the same for New York State income tax purposes as for federal income tax purposes.
Disposition of solar and wind energy systems
If in any tax year beginning on or after January 1, 1981, and ending before December 31, 1986, you took a New York State solar and wind energy credit on property; and
• that property was sold or otherwise disposed of during the tax year; and
• a reportable gain resulted for federal income tax purposes from that sale or disposition; and
• you had included the cost of the energy system in the federal basis of the property but did not reduce the federal basis by the state credit, then enter the amount of the credit you had previously claimed.
New business investment; deferral recognition
If, in any tax year beginning on or after January 1, 1982, and before 1988, you chose to subtract all or a portion of a long term capital gain from your federal income because that amount had been reinvested in a new New York business, and if that reinvestment was sold in the current tax year, then enter the amount that had been previously subtracted.
Qualified emerging technology investments (QETI)
If you elected to defer the gain from the sale of QETI because you reinvested in a New York qualified emerging technology company, and if you sold that reinvestment during the tax year, then you must enter the amount previously deferred. See S-115
Interest expense on loans used to buy obligations exempt from NYS tax, amortized bond premium on bonds that are exempt from NYS tax and other expenses relating to the production of income exempt from NYS tax
a) If your federal income includes a deduction for interest expense used to buy bonds, obligations, or securities whose interest income is taxable for federal purposes but exempt from New York State tax, then enter that interest expense. b) If your federal income includes a deduction for the amortization of bond premiums on bonds whose interest income is taxable for federal purposes but exempt from NYS tax, then enter that amortized premium. c) If your federal income includes a deduction for expenses relating to the production of income which is taxable for federal purposes but exempt from New York State tax, then enter that interest expense.
Health insurance and the welfare benefit fund surcharge
If you or a decedent were a career pension plan member of the NYC Employees’ Retirement System or the NYC Board of Education Retirement System; and your or the decedent’s wage and tax statement(s), federal Form W-2, show an amount that was deducted from salary for health insurance and the welfare benefit fund surcharge, then enter that amount.
For a full list of other additions, please see the IT-225 instructions.