The NYC-1127 is the personal income tax return for non-residents of NYC who are employees of the City of New York.
Under Section 1127 of the City Charter, if you are a City employee who lives outside the City and you were hired after January 4, 1973, as a condition of employment you agreed to pay to the City an amount equal to a City personal income tax on residents, computed and determined as if you were a resident of the City.
Section 1127 of the New York City Charter does not apply to you if you work for the Department of Education, City University of New York, District Attorneys' Offices, or New York City Housing Authority. Also, it does not apply if you are a NYC Housing Authority or Transit Police transferred into the New York Police Department.
To access this form in TurboTax, on the screen Take a look at New York City credits and taxes ,scroll down to New York City Employment Taxes and choose to start NYC Nonresident Employees Tax (NYC-1127) See the screenshot. Proceed with the interview until you reach the screen Print and File Form NYC-1127. There you will be able to print out your form.
Form 1127 isn't e-filed with your return, it gets printed and mailed.
Hi Isabella- Thank you for the information. I have attempted to verify the following "Section 1127 of the New York City Charter does not apply to you if you work for the Department of Education, City University of New York, District Attorneys' Offices, or New York City Housing Authority." I cannot locate this information in the NYC 1127 instructions, and it seems that there are conflicting views amongst tax preparers.
If you can point me in the right direction that would be much appreciated.
I work for MTA and wanted to know does this apply to me as well in regards to filing a form 1127. I am getting mixed answers. Some people that I asked stated that we don’t have to file as we are considered state and not city workers...and others are saying yes. The only thing I receive is a W-2 form. This is my first tax filing year living in NJ and work in NYC
You do not need to file Form NYC-1127. Generally, only New York City employees living outside of the 5 boroughs must file Form NYC-1127.
You are considered a NYC employee if you are employed in a New York City Government agencies such as NYPD, FDNY, Department of Finance, Department of Sanitation. The MTA is not a government agency.
@LenaH thank you so much! Omg! I filed my taxes two weeks ago. And filed that form! What wouldI have to do to correct it because it’s been accepted already! I’m not sure if that part is sent electronically I believe it may have been mailed through you guys. Also, would I have to pay another fee to get this fixed?? I’m kinda freaking out
What if the City employee lives in PA and has a side business in PA walking dogs on weekends. Does income from that side business get calculated into the amount they owe on the City waiver? It looks like Turbo Tax adds all of the city employees income no matter the source as the amount of tax liability to the City.
Hi, my wife works for the city. In the past, 1127 is on box 19, Local income tax and it gets added to the state-withheld tax automatically. Since 2020, it was moved to box 14, others. So I manually added it to box 19 so it can be deducted. Last year, I received a letter from the state to correct this. DId the tax code for the state change that removes the 1127 from Local Income tax?