NYC 1127

Discussion in 'Tax' started by Drew Edmundson, Jun 2, 2006.

  1. I am preparing my first NYC 1127 for a nonresident employee
    of NY City. Taxpayer retired last summer so he was only a
    nonresident employee of NYC for part of the year.

    In looking at the instructions I see the following for
    partial-year employees: "If you were a New York City
    employee for part of 2005, you must report that portion of
    federal items of income and deduction which is attributable
    to your period of employment by the City of New York."

    As those that are familiar with the form know there are two
    columns - the federal amount column and the Section 1127
    Employee column. For full year nonresident employees all
    the joint income from the federal is reported in the federal
    column and all the nonresident NYC employee's federal income
    is reported in the Section 1127 column. (Although there is
    an option to report just the separate income in the federal
    column.)

    So when the instructions say to report the federal portion
    attributable to your NYC employment period do they mean to
    do this for both columns or only for the Section 1127
    column?

    TIA,

    ---
    Drew Edmundson, CPA
    Cary, NC

    << ======================================================= >>
    << The foregoing is intended for educational purposes only >>
    << and does NOT constitute legal OR professional advice. >>
    << >>
    << The Charter and the Guidelines for submitting >>
    << messages to this newsgroup are at www.asktax.org. >>
    << Copyright (2006) - All rights reserved. >>
    << ======================================================= >>
     
    Drew Edmundson, Jun 2, 2006
    #1
    1. Advertisements

  2. Drew Edmundson

    Katie Guest

    Drew Edmundson wrote:

    > I am preparing my first NYC 1127 for a nonresident employee
    > of NY City. Taxpayer retired last summer so he was only a
    > nonresident employee of NYC for part of the year.
    >
    > In looking at the instructions I see the following for
    > partial-year employees: "If you were a New York City
    > employee for part of 2005, you must report that portion of
    > federal items of income and deduction which is attributable
    > to your period of employment by the City of New York."
    >
    > As those that are familiar with the form know there are two
    > columns - the federal amount column and the Section 1127
    > Employee column. For full year nonresident employees all
    > the joint income from the federal is reported in the federal
    > column and all the nonresident NYC employee's federal income
    > is reported in the Section 1127 column. (Although there is
    > an option to report just the separate income in the federal
    > column.)
    >
    > So when the instructions say to report the federal portion
    > attributable to your NYC employment period do they mean to
    > do this for both columns or only for the Section 1127
    > column?


    Drew, I haven't spent a lot of time looking at the forms,
    but I see the ambiguity you reference in the instructions.
    The point of this exercise, if I understand it, is to
    calculate the amount of tax the employee would have paid to
    the city if he/she had been a city resident while employed
    by the city. So he is treated as if he had been a part-year
    resident of the city in this case. The result should be the
    same as if you had completed an IT-203 part-year resident
    return for the employee, assuming he was a resident during
    the part of the year when he was a city employee. So -- I
    think the answer to the question is that 100% of the federal
    income goes in Col. A., and only the federal income relating
    to the period of employment goes in Col. B. You calculate
    the tax as if the taxpayer had been a full-year resident,
    and then prorate by the ratio of NYC AGI (Col. B) to total
    AGI (Col. A).

    If the employee had actually filed an IT 203 and paid tax to
    the city, the tax paid would be subtracted from the amount
    due on the NYC 1127.

    You might try doing a pro forma IT 203, based on the
    assumption of state and city residence during the period of
    employment, just to verify your results.

    Katie in San Diego

    << ======================================================= >>
    << The foregoing is intended for educational purposes only >>
    << and does NOT constitute legal OR professional advice. >>
    << >>
    << The Charter and the Guidelines for submitting >>
    << messages to this newsgroup are at www.asktax.org. >>
    << Copyright (2006) - All rights reserved. >>
    << ======================================================= >>
     
    Katie, Jun 3, 2006
    #2
    1. Advertisements

  3. Katie" <> wrote:

    snip

    > Drew, I haven't spent a lot of time looking at the forms,
    > but I see the ambiguity you reference in the instructions.
    > The point of this exercise, if I understand it, is to
    > calculate the amount of tax the employee would have paid to
    > the city if he/she had been a city resident while employed
    > by the city. So he is treated as if he had been a part-year
    > resident of the city in this case. The result should be the
    > same as if you had completed an IT-203 part-year resident
    > return for the employee, assuming he was a resident during
    > the part of the year when he was a city employee. So -- I
    > think the answer to the question is that 100% of the federal
    > income goes in Col. A., and only the federal income relating
    > to the period of employment goes in Col. B. You calculate
    > the tax as if the taxpayer had been a full-year resident,
    > and then prorate by the ratio of NYC AGI (Col. B) to total
    > AGI (Col. A).


    Katie, thank you. I posted this back in late March but it
    never showed up. A second try actually made it to the group
    on 3-30-06. Anyway I prepared the form in the manner you
    described as I could never get anyone on the phone in NY
    City.

    ---
    Drew Edmundson, CPA
    Cary, NC

    << ======================================================= >>
    << The foregoing is intended for educational purposes only >>
    << and does NOT constitute legal OR professional advice. >>
    << >>
    << The Charter and the Guidelines for submitting >>
    << messages to this newsgroup are at www.asktax.org. >>
    << Copyright (2006) - All rights reserved. >>
    << ======================================================= >>
     
    Drew Edmundson, Jun 6, 2006
    #3
    1. Advertisements

Want to reply to this thread or ask your own question?

It takes just 2 minutes to sign up (and it's free!). Just click the sign up button to choose a username and then you can ask your own questions on the forum.
Similar Threads
  1. Meyer1228

    NYC / NY Payroll

    Meyer1228, Oct 21, 2005, in forum: Accounting
    Replies:
    0
    Views:
    300
    Meyer1228
    Oct 21, 2005
  2. Big Four Alumni
    Replies:
    0
    Views:
    357
    Big Four Alumni
    Aug 7, 2006
  3. Replies:
    0
    Views:
    325
  4. CalfromNY
    Replies:
    2
    Views:
    477
    Benjamin Yazersky CPA
    Jan 22, 2004
  5. Drew Edmundson

    NYC Section 1127 return

    Drew Edmundson, Mar 30, 2006, in forum: Tax
    Replies:
    0
    Views:
    1,499
    Drew Edmundson
    Mar 30, 2006
Loading...

Share This Page