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How to complete NY IT-203B & IT-203F after filing NY State tax return?

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May 11, 2023
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I filed my 2022 NY State tax return through TT desktop, claiming 0% income from NY. (My employer incorrectly assigned me to a NY location for a few weeks before having it corrected.)

NY State Dept of Taxation requested additional information, including forms IT-203B and IT-203F. These forms are not included in my TT return when viewing Forms or when selecting printing of all NY State forms. Nor do I see a way to have them created.

How would I complete and print NY IT-203B and IT-203F using TT?

Best answer by rjs

The main additional information that you have to provide is an explanation that the New York wages shown on your W-2 is a mistake, and that you never worked in New York in 2022 at all. If you can get a letter from your employer saying that it's a mistake, that would help.

To complete Form IT-203-B in TurboTax, in the Wage Allocation section of the New York interview, on the screen that asks you to select an allocation method, select "Allocate by Number of Days." On the screen that asks for work days outside of New York you will enter the total number of work days for the year (after subtracting weekends, holidays, vacation, etc.). This will result in allocating $0 wages to New York. When you check the New York return for errors you will get an error message saying that the number of days worked outside New York should be less than the total number of days worked. But in your case it is not less, since you actually did work outside New York on all work days. You can just ignore the error and print the form with $0 wages allocated to New York.

Form IT-203-F does not seem to apply to your situation. It's for allocating income to different years. They might be asking for it because they think the New York income on your W-2 might be attributable to work that you did in New York in an earlier year. So you might want to add to your explanation that the New York income on the W-2 is not related to work done in an earlier year, so Form IT-203-F is not applicable.

I'm not sure how you can complete Form IT-203-F in TurboTax, unless you have some capital gains or losses, or capital gain distributions. If you do have one of those, go to the "Nonresident other allocations" section. On the New York Income Allocation screen check the box that says "Check this box to use Form IT-203-F to allocate all or part of your capital gains using multiple years."

rjsAnswer

Employee

The main additional information that you have to provide is an explanation that the New York wages shown on your W-2 is a mistake, and that you never worked in New York in 2022 at all. If you can get a letter from your employer saying that it's a mistake, that would help.

To complete Form IT-203-B in TurboTax, in the Wage Allocation section of the New York interview, on the screen that asks you to select an allocation method, select "Allocate by Number of Days." On the screen that asks for work days outside of New York you will enter the total number of work days for the year (after subtracting weekends, holidays, vacation, etc.). This will result in allocating $0 wages to New York. When you check the New York return for errors you will get an error message saying that the number of days worked outside New York should be less than the total number of days worked. But in your case it is not less, since you actually did work outside New York on all work days. You can just ignore the error and print the form with $0 wages allocated to New York.

Form IT-203-F does not seem to apply to your situation. It's for allocating income to different years. They might be asking for it because they think the New York income on your W-2 might be attributable to work that you did in New York in an earlier year. So you might want to add to your explanation that the New York income on the W-2 is not related to work done in an earlier year, so Form IT-203-F is not applicable.

I'm not sure how you can complete Form IT-203-F in TurboTax, unless you have some capital gains or losses, or capital gain distributions. If you do have one of those, go to the "Nonresident other allocations" section. On the New York Income Allocation screen check the box that says "Check this box to use Form IT-203-F to allocate all or part of your capital gains using multiple years."

M

ma1261Author

Thank you for your specific recommendations. They are very helpful.

I was able to create the IT-203B form by redoing the NY allocation to Days.

Oddly, the main IT-203 form still is using allocation on percentage, as I filed.

Note: TT would not file the NY State return with a 0% allocation, saying it would be rejected. I used a 0.1% allocation to get TT to submit electronically. This resulted in a very small amount of NY tax that would not be returned.

Do you think I should redo/force the NY State return to remove the percent allocation and use days in the main IT-203 form?

Also, in completing the NY State info when using Days for allocation, it asks for 'total days worked outside NYS' and 'total days worked at home'. I made these the same. On form IT-203B, they are subtracted and leads to 'total days worked in NYS' to be the full amount of days, which caused the days multiplier of '1'. This seems to indicate that all my days were worked in NYS. Have I done this correctly?

rjs

Employee

Total days worked at home should be zero (or leave it blank). That's referring to telecommuting, which is not what you did (as I understand it). Total days worked in NYS should then be zero.

Based on your original question I assumed that you worked at your employer's location in another state, not in New York, all year. If you worked at home in another state, and telecommuted to New York, that could change the picture. In that case, you need to take a step back and explain your work arrangement in more detail, including whether you ever went to your employer's New York location.

If my assumption was correct, you did not work in New York at all in 2022. What makes it an odd situation is that normally if you did not work in New York at all you would not file a New York tax return. You only had to file because of a mistake on your W-2. The tax forms are designed for normal cases, not for correcting mistakes. The Department of Taxation is only asking for IT-203-B because your W-2 shows New York wages (and possibly New York withholding), but you reported zero New York wages on your tax return.

I think you should just reply to the letter from the Department of Taxation, and not file anything or do anything else. In your reply, give a clear explanation of what happened, and include the IT-203-B showing zero days worked in New York. Then just wait until you get a response from them.