New York Nonresident Income Tax Instructions

Nonresident Income Tax Instructions
2023 Instructions for Form IT-203, Nonresident and Part-Year Resident Income Tax Return
Department of Taxation and Finance

IT-203-I

Instructions for Form IT-203
Nonresident and Part-Year Resident Income Tax Return
New York State • New York City • Yonkers • MCTMT
(including instructions for Forms IT-195, IT-203-ATT, and IT-203-B)

Tables of contents
•

General information

•

What’s new for 2023

•

File electronically

•

E-file information

•

Other forms you may need to file

•

Protect yourself from identity theft

•

File a valid return

•

Common words and phrases

•

Online Services

•

How to fill in the forms

•

How to get 1099-G information

•

How are you taxed as a nonresident or as a part-year resident?

•

New York State nonresidents and part-year residents: Who must file?

•

Step 1: Complete the taxpayer information section

•

Step 2: Select your filing status and complete items B through H

•

Step 3: Enter your federal income and adjustments

•

Instructions for Part-year resident income allocation worksheet

•

Line instructions for Form IT-203

•

Step 4: Calculate your New York additions and subtractions

•

New York additions

•

New York subtractions

•

Step 5: Enter your New York standard or New York itemized deduction and dependent exemption amounts

•

Step 6: Compute your taxes

•

Step 7: Add voluntary contributions

•

Step 8: Enter your payments and credits

•

Step 9: Calculate your refund or the amount you owe

•

Step 10: Sign and date your return

•

Step 11: Finish your return

•

Instructions for Form IT-195, Allocation of Refund
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•

Instructions for Form IT-203-ATT, Other Tax Credits and Taxes

•

Instructions for Form IT-203-B, Nonresident and Part-Year Resident Income Allocation and College Tuition Itemized Deduction
Worksheet

•

Additional information

•

How to compute your 2023 New York State tax

•

New York State tax rate schedule

•

Tax computation—New York adjusted gross income of more than $107,650

•

When to file/Important dates

•

Statute of limitations

•

Where to file

•

Need help?

General information
Up-to-date information affecting your tax return
For tax law changes or forms corrections that occurred after the forms and instructions were finalized, see Personal income tax up-todate information.

What’s new for 2023
For a detailed list of what’s new, including a summary of tax law changes, see New for 2023 or visit our website
at www.tax.ny.gov (search: 2023).

File electronically
Electronic preparation (e-file) is fast, easy, and secure. You may even qualify for free filing options. For all your e-file options, see Filing
Season Resource Center.
For the fastest processing of your refund, combine e-file with direct deposit. You can receive your New York State tax refund up to two
weeks sooner than if you filed by paper and requested a paper check.
User-friendly e-file software ensures you file all the right forms and do not miss out on valuable credits.

E-file information
Using software?
You must e-file if your software allows you to e-file your return, or if you are a tax preparer who is subject to the e-file mandate. E-file is
easy, safe, and allows you to get your refund faster. Most New York taxpayers e-file.

Make a payment
Pay a balance due by authorizing the Tax Department to withdraw the payment from your bank account. Authorize the payment when
you e-file your return or make a return payment after you file your return using our Online Services. You may also pay with a credit
card.
For more information, visit our website at www.tax.ny.gov (search: pay).

Other forms you may need to file
If you do file a paper return, see Nonresident forms and Part-year resident forms (search: part).
For a complete list of credits, see also Income tax credits (search: credits). Reminder: To claim a tax credit (with the exception of the
household credit and part-year New York City school tax credit) you must complete and submit the appropriate credit form.

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New York City forms
If you need to get New York City tax forms and instructions or information about New York City business taxes, contact the New York
City Department of Finance:

•

Online: www.nyc.gov/finance

•

By online message: nyc.gov/contactdof

•

By phone: From any of the five boroughs in New York City, call 311. From outside New York City, call 212-639-9675.

Protect yourself from identity theft
Identity theft is the unauthorized use of personal information such as:

•

Social Security number

•

credit card number

Identity thieves can file forged tax returns to collect fraudulent refunds and victims may not be aware their identities have been stolen.
Protect your identity by writing only the last four digits of your Social Security number on any check or money order you send to the
Tax Department. You must include your complete Social Security number on your return and payment voucher. We cannot process
these forms without the complete number.
For more information, or if you think you have been a victim of tax-related identity theft, see Identity theft affecting your tax
records (search: fraud).

File a valid return
If the paper form you are using has a year under the New York State map in the upper-left corner, you can only use that form for that
tax year.
To file a complete return, you must:

•

complete all required schedules and forms that make up your return,

•

include all pages of those forms and schedules when you file,

•

submit only those forms and schedules that apply to your return, and

•

confirm you made all required entries.

If you submit your return with missing pages or missing entries, we cannot process it and you may be subject to penalty and interest.

Entering whole dollar amounts
When you enter amounts on your return, enter whole dollar amounts only. This includes amounts on any credit forms, schedules, or
other forms you submit with your New York State return.
Do not enter any cent amounts. We preprinted the zeros in that box. Instead, round cents to the nearest dollar using the following rules:

•

Drop amounts that are less than 50 cents. For example, $1.39 becomes $1.

•

Increase amounts that are 50 cents or more to the next dollar. For example, $2.50 becomes $3.

Common words and phrases
To save space and enhance clarity, these instructions may use common abbreviations, including:
EIC = earned income credit
IRC = Internal Revenue Code
IRS = Internal Revenue Service
MCTMT = Metropolitan Commuter Transportation Mobility Tax
NYS = New York State
NYC = New York City
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Online Services
Create an Online Services account and log in to:

•

make payments

•

view your filing and payment history

•

get email notifications for refunds, bills, and notices

•

sign up for electronic communications about refunds, bills, and notices

Access is available 24 hours a day, 7 days a week.
For more information, see Online Services (search: online).

How to fill in the forms
As you complete your form, follow these guidelines to avoid processing delays:

•

Use black ink only (no red or other color ink or pencils) to print or type (if you are using a fill-in form) all entries.

•

If you are entering a loss (an amount less than zero), place a minus sign immediately to the left of the loss amount. Do not
use brackets or parentheses.

•

Mark an X to fill in boxes as appropriate. Do not use a check mark. Keep your Xs and numerals inside the boxes.

•

Do not write in dollar signs or commas when you enter amounts or numbers.

How to get 1099-G information
If you received an income tax overpayment, including a refund, from us in 2023, you may need information from Tax Department
Form 1099-G, Statement for Recipients of State Income Tax Refunds, to complete your federal return. We do not mail this form. To
view and print a copy, see Get your 1099-G information online (search: 1099-G).
If you received unemployment benefits in 2023, you must report the information from Department of Labor (DOL) Form 1099-G,
Statement for Recipients of Certain Government Payments, on your federal and New York State returns, if required to file.

•

•

For unemployment compensation or pandemic unemployment benefits, DOL will not mail you Form 1099-G. To access this
form:
1.

Visit the DOL website at https://dol.ny.gov and see 1099-G Tax Form: Information you need for UI income tax filing.

2.

Log in to your ny.gov ID account.

3.

Select Unemployment Services and View/Print 1099-G.

For Excluded Workers Fund (EWF) benefits, DOL will mail you Form 1099-G. Visit the DOL website at https://dol.ny.gov.

How are you taxed as a nonresident or as a part-year resident?
If you were a nonresident of New York State, you are subject to New York State tax on income derived from New York State sources.
If you were a resident of New York State for only part of the tax year, you must pay New York State tax on all income you received
while you were a resident of the state and on income you received from New York State sources while you were a nonresident.
To determine how much tax you owe, use Form IT-203, Nonresident and Part-Year Resident Income Tax Return. You will compute a
base tax as if you were a full-year resident, then determine the percentage of your income that is subject to New York State tax and the
amount of tax apportioned to New York State.

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New York State nonresidents and part-year residents: Who must file?
You must file Form IT-203 if you meet any of the following conditions:

•

You have income from a New York State source (see Nonresidents: New York source income) and your New York adjusted
gross income (Federal amount column) is more than your New York State standard deduction. Complete Form IT-203,
lines 1 through 31 and compare the line 31 Federal amount to your standard deduction from the New York State standard
deduction table.

•

You want to claim a refund of any New York State, New York City, or Yonkers income taxes withheld from your pay or from
your unemployment insurance benefit payments.

•

You want to claim any of the New York State, New York City, or Yonkers refundable or carryover credits.

•

You were a part-year resident and you are subject to a separate tax on any lump-sum distributions for your resident period
derived from or connected with New York sources (Form IT-230, Separate Tax on Lump-Sum Distributions). See Other forms
you may have to file.

•

You incurred a net operating loss (NOL) for New York State personal income tax purposes for the tax year, without incurring a
similar NOL for federal income tax purposes. For more information, see New York State net operating loss.

Nonresidents: New York source income
For nonresidents, New York source income is the sum (with adjustments for special accruals) of income, gain, loss, and deduction
from:

•

real or tangible personal property located in New York State (including certain gains or losses from the sale or exchange of an
interest in an entity that owns real property in New York State or owns shares of stock in a cooperative housing corporation
where the cooperative units relating to the shares are located in New York);

•

services performed in New York State;

•

a business, trade, profession, or occupation carried on in New York State whether or not as an employee (see
TSB-M-10(9)I, Income Received by a Nonresident Related to a Business, Trade, Profession, or Occupation Previously Carried
on Within New York State); and

•

a New York S corporation in which you are a shareholder (including installment income from an IRC § 453 transaction).

New York source income also includes:

•

your distributive share of New York State partnership income or gain;

•

your share of New York State estate or trust income or gain;

•

lottery winnings won in the New York State lottery, if the prize was won on or after October 1, 2000, and the total proceeds of
the prize are more than $5,000;

•

gambling winnings in excess of $5,000 from wagering transactions within New York State;

•

any gain from the sale, transfer, or other disposition of shares of stock in a cooperative housing corporation in connection with
the grant or transfer of a proprietary leasehold, when the real property comprising the units of such cooperative housing
corporation is located in New York State;

•

any income you received related to a business, trade, profession, or occupation previously carried on in this state, whether or
not as an employee, including but not limited to, covenants not to compete and termination agreements (for additional
information, see Form IT-203-F, Multi-Year Allocation Form, and its instructions);

•

in the case of a shareholder in an S corporation that has made the election to be a New York S corporation, and the
S corporation has distributed an installment obligation under IRC section 453(h)(1)(A) to the shareholders, any gain
recognized on the receipt of payments from an installment obligation for federal income tax purposes;

•

in the case of a shareholder in an S corporation that has made the election to be a New York S corporation, and the
S corporation has made an election under IRC section 338(h)(10), any gain recognized on the deemed asset sale for federal
income tax purposes;

•

in the case of a shareholder in an S corporation that has made the election to be a New York S corporation, and that
S corporation terminates its taxable status in New York, any income or gain recognized on the receipt of payments from an
installment sale contract entered into when the S corporation was subject to tax in New York; and

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•

any gain recognized by you for federal income tax purposes from the sale or transfer of a partnership interest, where the sale
or transfer:

o

is subject to the provisions of IRC § 1060, and

o

occurred on or after April 10, 2017.

The amount of the gain to be included in New York source income is determined in a manner consistent with the applicable methods
and rules for allocation under Article 22 in the year that the assets were sold or transferred (for additional information, see
TSB-M-18(2)I, Nonresident Partner’s Treatment of Gain or Loss on Certain Sales or Transfers of a Partnership or Membership
Interest).
New York source income does not include the following income even if it was included in your federal adjusted gross income:

•

certain pensions that are exempt from New York State taxation by reason of U.S. Code, Title 4, section 114 (see
line 10 instructions), and annuities and pensions that meet the New York State definition of an annuity, unless the annuity is
employed in or used as an asset of a business, trade, profession, or occupation carried on in New York State;

•

interest, dividends, or other income from intangible personal property, or gains from the sale or exchange of intangible
personal property, unless the intangible personal property is employed in a business, trade, profession, or occupation in New
York State;

•

compensation you received for active service in the United States military (see Members of the armed forces);

•

your income earned in New York State as a military spouse if:

o

you are a nonresident of New York State, and

o

you are in New York State solely to be with your spouse who is a member of the armed services present in New York
State in compliance with military orders (for more information, see TSB-M-10(1)I, Military Spouses Residency Relief
Act and TSB-M-19(3)I, Veterans Benefits and Transition Act of 2018 );

•

your income as a shareholder of a corporation that is a New York C corporation;

•

compensation you received from an interstate rail carrier, interstate motor carrier, or an interstate motor private carrier for
regularly assigned duties performed in more than one state;

•

compensation you received from an interstate air carrier if 50% or less of that compensation is earned in New York State;

•

compensation paid to you if:

o

you are engaged on a vessel to perform assigned duties in more than one state as a pilot licensed under U.S. Code,
Title 46, section 7101, or

o

you perform regularly assigned duties while engaged as a master, officer, or crewman on a vessel operating on the
navigable waters of more than one state.

Part-year residents: New York source income
For part-year residents, New York source income is the sum of the following with adjustments for special accruals:

•

all income reported on your federal return for the period you are a resident of New York State; and

•

the New York source income for the period you were a nonresident of New York State.

Additional notes to all filers
1.

Do you have to submit other forms? See Nonresident and part-year resident forms (Search: part).

2.

Do you want to claim tax credits? See Income tax credits to learn about refundable and nonrefundable credits you may qualify
for (Search: credits).

3.

Does your child have investment income over $2,500? It would be to your advantage to file a New York State return for your
child to report your child’s investment income, since there will be no New York tax on the first $3,100 of that income. When you
file your federal return, report your child’s investment income on federal Form 8615 (instead of federal Form 8814). If you file
Form 8814, the amount of your child’s investment income over $2,500 that was included in your federal gross income will be
reported on your New York State return and taxed at your rate.

4.

Did you file federal Form 1040-SR, U.S. Tax Return for Seniors? As you review your New York State income tax forms and
instructions, read any reference to federal Form 1040 and its schedules as a reference to federal Form 1040-SR.

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Separate returns are required for some married taxpayers who file a joint federal return
If one of you was a New York State resident and the other was a nonresident or part-year resident, you must each file a separate New
York return. The resident must use Form IT-201. The nonresident or part-year resident, if required to file a New York State return, must
use Form IT-203. However, if you both choose to file a joint New York State return, use Form IT-201 and both spouses’ income will be
taxed as full-year residents of New York State.

Filing information for same-sex married couples
Same-sex married couples have the same state tax benefits and requirements as different-sex married couples filing and paying New
York State personal income tax. In addition, as a result of the Supreme Court’s decision United States v. Windsor, and IRS Revenue
Ruling 2013-17, for federal tax purposes the IRS will recognize a marriage between a same-sex couple that is a legal marriage under
the laws of the jurisdiction (either domestic or foreign) where the marriage was performed. Therefore, you must determine your filing
status using the general married filing status rules (see Item A under Step 2, select your filing status, and complete items B through H).
The term spouse should be read as gender-neutral and includes a person in a marriage with a same-sex spouse. The term
marriage includes a marriage between same-sex spouses.

Step 1: Complete the taxpayer information section
Name and address
Write the following in the spaces provided:

•

Name: Your first name, middle initial, and last name. If you are married and filing a joint return, enter both spouses’ names.

•

Mailing address: Your mailing address (where you want to receive your mail) can be the same as, or different from, your
permanent home address (where you actually live). Enter your current mailing address where you want us to send your
refund, if requested, and any correspondence related to your return. PO Box or street address, city, state, ZIP code, and
country.

Note: Do not abbreviate the country name.
If you are required to file Form IT-203-C, only enter the name of the spouse with New York source income.

Foreign addresses
Enter the information in the following order:

•

city,

•

abbreviation for the province or state,

•

postal code (follow the country’s practice), and

•

country (do not abbreviate the country name).

Taxpayer’s permanent home address
If your mailing address is different from your permanent home address (for instance, you use a PO Box), enter your permanent home
address.

Part-year residents
Your permanent home address is the address of the dwelling place in New York State that you occupied last in the tax year whether
you or your spouse own or rent it.

•

If you moved into the state, enter your permanent home address as of December 31, 2023. If you moved out of the state prior
to December 31, 2023, enter as your permanent home address the address of the New York State residence you occupied
last in 2023.

•

If you use a paid preparer and you use the preparer’s address as your mailing address, enter the address of your permanent
home in the space provided.

•

If you are a permanent resident of a nursing home, enter the nursing home address.

•

If you are in the armed forces and your permanent home was in New York State when you entered the military, enter your
New York permanent home address regardless of where you are stationed.

•

If you are married and maintain separate New York State residences and are filing separate New York State returns, enter the
address of your own residence as your permanent home address.
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Nonresidents
Enter the address of your residence outside New York State that you consider to be your domicile and your permanent place of abode if
it is different from your mailing address. For definitions, see Domicile and Permanent place of abode.
If you moved into New York State after December 31, 2023, enter the address of the residence that you maintained during 2023 outside
New York State that you considered to be your domicile and your permanent place of abode.

Dates of birth and Social Security numbers
Enter your date of birth and entire Social Security number, and those of your spouse (if applicable).
If you are required to file Form IT-203-C, include your Social Security number and your spouse’s.

New York State county of residence
Part-year residents
Enter the county of the last residence where you lived in New York State as of December 31, 2023. If you lived in New York City, use
one of the following county names:
County names
If you lived in

enter

Bronx

Bronx

Brooklyn

Kings

Manhattan

New York

Queens

Queens

Staten Island

Richmond

Nonresidents
Enter the abbreviation NR in the county space.

School district name and code
Part-year residents
Enter the correct code number and the name of your school district. This is the public school district located in the county where
you were a resident on December 31, 2023, or the district where you were a resident of New York before you moved out of the state. If
you do not know the name of the school district, contact the nearest public school to your New York State home address or former New
York State home address. For a detailed list of the school district names and code numbers, see School district codes or visit our
website at www.tax.ny.gov (search: school district). If you were also a part-year resident of New York City, look for your listing after
Nassau County.
You must enter your school district name and code number even if:

•

you were absent from the school district temporarily,

•

the school your children attended was not in your school district, or

•

you had no children attending school.

Incorrect district names and code numbers may affect school aid.

Nonresidents
Enter the abbreviation NR in the school district name box. Leave the code box blank.

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Decedent information
•

If the taxpayer whose name is listed first on the return died after December 31, 2022, and before you filed your return, enter
the date of death in the boxes labeled Taxpayer’s date of death, in month, day, and year (last two-digits) order.

•

If the taxpayer whose name is listed second died after December 31, 2022, and before you filed your return, enter the date of
death in the box labeled Spouse’s date of death.

For more information, see Deceased taxpayers.
In addition, you must make the appropriate entry at Item F if you qualify for a 90-day extension of time to file your return because your
spouse died within 30 days before the due date of your return.

Step 2: Select your filing status and complete items B through H
Item A
In most cases, you must use the same filing status you used on your federal return. If you did not have to file a federal return, use the
filing status you would have used if you filed.

Exceptions
The only exceptions are for certain married couples filing a joint federal return in the following situations:

•

both spouses are nonresidents and both have New York source income,

•

one spouse is a part-year resident and the other is a nonresident with New York source income, or

•

both spouses are part-year residents.

In these cases, you must file a joint New York State return using filing status ②. Both spouses must sign the return and will generally
be jointly and individually liable for the entire tax, penalty, or interest due. This means that if one spouse does not pay the tax due, the
other may have to.
If you meet one of the preceding three conditions but are unable to file a joint New York return because:
1.

the address or whereabouts of your spouse is unknown, you can demonstrate that reasonable efforts have been made to
locate your spouse, and good cause exists for the failure to file a joint New York return; or

2.

your spouse refuses to sign a joint New York return, reasonable efforts have been made to have your spouse sign a joint
return, there exists objective evidence of alienation from your spouse such as judicial order of protection, legal separation
under a decree of divorce or separate maintenance, or living apart for the twelve months immediately preceding application to
file a separate return or commencement of an action for divorce or commencement of certain family court proceedings, and
good cause exists for the failure to file a joint New York return,

you may file a separate New York return using filing status ③.
If you filed a joint federal return and:

•

both spouses are nonresidents but only one has New York source income, or

•

one spouse is a part-year resident and the other is a nonresident with no New York source income,

you must file a joint New York State return using filing status ②‚ and include in the Federal amount column the joint income as reported
on your federal income tax return. However, only the spouse with New York source income (or the part-year resident spouse) should
sign Form IT-203. That spouse must also complete Form IT-203-C, Nonresident or Part-Year Resident Spouse’s Certification (see
Other forms you may have to file), and submit it with your Form IT-203. In this case, any refund or notice of tax, penalty, or interest due
will be issued only in the name of the spouse required to sign Form IT-203.
If you filed a joint federal return and one spouse is a New York State resident and the other is a nonresident or part-year
resident, you are required to file separate New York State returns. The resident must use Form IT-201. The nonresident or part-year
resident, if required to file a New York State return, must use Form IT-203. However, if you both choose to file a joint New York State
return, use Form IT-201; both spouses’ income will be taxed as full-year residents of New York State.

Item B
If you itemized your deductions on your 2023 federal income tax return, mark an X in the Yes box. If you claimed the standard
deduction on your federal return, mark an X in the No box.

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Item C
If you can be claimed as a dependent on another taxpayer’s federal return, you must mark an X in the Yes box. You must mark
the Yes box even if the other taxpayer did not claim you as a dependent. For example, if another taxpayer was entitled to claim you as
a dependent on their federal return, but chose not to so that you can claim the federal education credit, you must mark the Yes box.

Item D1
If you marked Yes on federal Schedule B (Form 1040), Interest and Ordinary Dividends, Part III, then mark an X in the Yes box.

Item D2
All IT-203 filers must complete item D2.
If you or your spouse (if married filing jointly) maintained or had use of an apartment or living quarters in Yonkers during any part of
2023 (whether or not you personally used those living quarters for any part of the year), you must mark an X in the Yes box on line
D2(1). Enter in the applicable box the number of months you and your spouse (if filing a joint return) lived in Yonkers during 2023.
Living quarters include a house, apartment, co-op, or any other dwelling that is suitable for year-round use, that you or your spouse
maintain or pay for, or that is maintained for your primary use by another person, family member, or employer.
Example: Company A leases an apartment in Yonkers for the use of one of the company’s officers, and the apartment is mainly
available to that individual. That individual is considered to be maintaining living quarters in Yonkers even though others might use the
apartment on an occasional basis.
Notes:

•

If you marked the Yes box on line D2(1), you may be considered a part-year resident for Yonkers income tax purposes. The
determination of residency is based on the facts and circumstances of your own situation. See the Income tax definitions or
visit our website at tax.ny.gov (search: resident). If you meet the definition of a Yonkers part-year resident, see Line 54:
Part-year Yonkers resident income tax surcharge.

•

If you marked the Yes box on line D2(4), you may be subject to the Yonkers nonresident earnings tax. See Line 53: Yonkers
nonresident earnings tax.

If you meet the definition of a resident of Yonkers, you may not file Form IT-203. You must file Form IT-201, Resident Income Tax
Return.

Item E
New York City part-year residents only (This includes the Bronx, Brooklyn, Manhattan, Queens, and Staten Island): Enter in the
applicable box the number of months you and your spouse (if filing a joint return) lived in New York City during 2023. We need this
information to verify your New York City school tax credit.
All other taxpayers: Leave Item E blank.

Item F
If you qualify for one or more of the special conditions below, enter the specified two-character code.

Code A6 Build America Bond interest
Enter this code if you included Build America Bond interest in your federal adjusted gross income. For additional information, see
TSB-M-10(4)I, Treatment of Interest Income from Build America Bonds (search: TSB-M-10(4)I).

Code C7 Combat zone
Enter this code if you qualify for an extension of time to file and pay your tax due under the combat zone or contingency operation relief
provisions. See Publication 361, New York State Income Tax Information for Military Personnel and Veterans (search: military).

Code D9 Death of spouse
Enter this code if you qualify for an automatic 90-day extension of time to file your return because your spouse died within 30 days
before the due date of your return.

Code K2 Combat zone, killed in action (KIA)
Enter this code if you are filing a return on behalf of a member of the armed forces who died while serving in a combat zone. For
information on filing a claim for tax forgiveness, see Publication 361.

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Code E3 Out of the country
Enter this code if you qualify for an automatic two-month extension of time to file your federal return because you are out of the country.
For additional information, see When to file/Important dates.

Code E4 Nonresident noncitizens
Enter this code if you are a U.S. nonresident noncitizen for federal income tax purposes and you qualify to file your federal income tax
return on or before June 17, 2024. The filing deadline for your New York State return is also June 17, 2024.

Code E5 Extension of time to file beyond six months
Enter this code if either of the following conditions applies:
•

You qualify for an extension of time to file beyond six months under section 157.3(b)(1) of the personal income tax regulations
because a) you are outside the United States and Puerto Rico, or b) you intend to claim nonresident status under section
605(b)(1)(A)(ii) of the Tax Law (548-day rule). You must submit a copy of the letter you sent to the IRS to request the
additional time to file.

•

You received a federal extension to qualify for the federal foreign earned income exclusion, or the foreign housing exclusion or
deduction, or both. Submit a copy of the approved federal Form 2350, Application for Extension of Time to File U.S. Income
Tax Return.

Code M2 Military spouse exempt income
Enter this code if you had exempt income under the federal Military Spouses Residency Relief Act (Public Law 111-97). For additional
information, see TSB-M-10(1)I, Military Spouses Residency Relief Act, and TSB-M-19(3)I, Veterans Benefits and Transition Act of
2018.

Code 56 Losses from Ponzi-type fraudulent investment arrangements
Enter this code if you had a Ponzi-type fraudulent investment and are reporting a New York State theft loss deduction (itemized
deduction) using the federal safe harbor rules. Also submit a copy of the statement you made in accordance with federal Revenue
Procedure 2009-20.

Code C2 Request an installment payment agreement
Enter this code if you cannot pay your tax due in full by April 15, 2024, and would like to request an installment payment agreement
(IPA). You cannot apply for an IPA until you receive a bill. Once you do, follow the payment instructions on the bill.
You will continue to accrue penalties and interest (if applicable) on any unpaid balance of tax due for the duration of your IPA. For more
information, see Installment payment agreement (IPA) (search: IPA).

Code M4 Veterans Benefits and Transition Act of 2018 election
Enter this code if you are a civilian spouse of a military servicemember and you are electing to use the same state of legal residence as
the servicemember for state income tax purposes. For additional information, see TSB-M-19(3)I, Veterans Benefits and Transition Act
of 2018 (search: TSB-M-19(3)I).

Item G
New York State part-year residents
If you were a New York State resident for part of the year, enter the date you moved and mark an X in the box that describes your
situation on the last day of the tax year.

Item H
All IT-203 filers must complete item H.
Did you maintain living quarters in New York State?
If you or your spouse (if married filing jointly) maintained or had use of an apartment or living quarters available for your use in New
York State during any part of 2023 (whether or not you personally used those living quarters for any part of the year), you must mark
an X in the Yes box and complete Schedule B on Form IT-203-B
Living quarters include a house, apartment, co-op, or any other dwelling that is suitable for year-round use, that you or your spouse
maintain or pay for, or that is maintained for your primary use by another person, family member, or employer.
Example: Company A leases an apartment in New York State for the use of one of the company’s officers, and the apartment
is mainly available to that individual. That individual is considered to be maintaining living quarters in New York State even
though others might use the apartment on an occasional basis.

11

Note: If you marked the Yes box, and you spent 184 days or more (any part of a day is a day for this purpose) in New York State, you
may be considered a resident for New York State income tax purposes. The determination of residency is based on the facts and
circumstances of your own situation. See the definitions of Resident, Nonresident, and Part-year resident.
In addition, if you marked the Yes box and your living quarters were located in New York City or Yonkers, you may also be considered
a resident of New York City or Yonkers for income tax purposes.
If you meet the definition of a resident of New York State, New York City, or Yonkers, you may not file Form IT-203. You must file
Form IT-201, Resident Income Tax Return.
If you are in the military and did not maintain a permanent place of abode within the state, submit a statement to that effect with your
return (see Publication 361, New York State Income Tax Information for Military Personnel and Veterans).

Item I
Enter the required information for each dependent you claimed on federal Form 1040. Also enter the required information for any
dependent you were entitled to claim on your federal return but chose not to (see Example below). If you did not have to file a federal
return, enter the required information for each dependent you would be entitled to claim for federal income tax purposes.
Example: You were entitled to claim your child as a dependent on your federal return but chose not to in order to allow them
to claim a federal education credit on their federal tax return. You may still claim them as a dependent on your New York State
return.
If you have more than six dependents and are filing a paper return, attach a separate piece of paper marked Form IT-203: Item I
continued to your return with:
•

your name and Social Security number at the top, and

•

the required information for each additional dependent.

Note: If you are married filing a joint federal return but are required to file separate returns for New York State, complete item I as if you
filed separate federal returns. For more information about filling separate returns, see Filing status.

Step 3: Enter your federal income and adjustments
Overview
The purpose of lines 1 through 19 is to determine the portion of your federal adjusted gross income that is subject to New York State
tax, before certain adjustments. This portion includes any items of income you received as a nonresident from New York State sources
plus, if you were a resident of New York State for part of the year, any items you received from any source while you were a resident.

Federal amount column
Enter the amount reported on your federal return for each item of income or adjustment. If you did not file a federal return, report the
amounts you would have reported as if you had filed a federal return.
However, if you are subject to the special accrual rules, either as a full-year nonresident or a part-year resident, also include all items
you would have to include as if you filed a federal return on the accrual basis. See Special accruals.
If you file a joint federal return but must file a separate return for New York State, calculate the Federal amount column as if you had
filed a separate federal return.

New York State amount column
Nonresidents
Enter all the income included in the Federal amount column that you received from New York State sources.

Part-year residents
Enter the total of:
•

your New York State source income for the part of the year you were a nonresident, and

•

the income included in the Federal amount column that you received from all sources earned while you were a New York State
resident. Complete the Part-year resident income allocation worksheet below to determine your New York State source
income.

12

Part-year resident income allocation worksheet (see instructions below)
Federal
income
(all sources)
Adjusted gross income
(Married persons filing separate New
York State
returns should complete separate
worksheets)

1. Wages, salaries, tips, etc.

1

2. Taxable interest income

2

3. Ordinary dividends

3

4. Taxable refunds, credits or
offsets of state and local income
taxes

4

5. Alimony received

5

6. Business income or loss (from
federal Schedule C)

6

7. Capital gain or loss

7

8. Other gains or losses (from
federal Form 4797)

8

9. Taxable amount of IRA
distributions

9

10. Taxable amount of pensions
and annuities

10

11. Rental real estate, royalties,
partnerships, S corporations,
trusts, etc. (from federal
Schedule E)

11

12. Rental
real
estate
included
in line 11
(federal
amount)

Column A
(Income from
federal
return)

New York State nonresident
period

Column B
(Income from
Column A for
nonresident
period)

12

13. Farm income or loss (from
federal Schedule F)

13

13

Column C
(Income from
Column B
from
NYS sources)

New York
State
resident
period

Totals

Column D
(Income from
Column A for
resident
period)

Column E
(C + D)

14. Unemployment compensation

14

15. Taxable amount of Social
Security benefits

15

16. Other income

16

17. Add lines 1 through 11 and
13 through 16

17

18. Total federal adjustments to
income

18

19. Federal adjusted gross
income (subtract line 18 from line
17; see below*)

19

*The combined total of Columns B and D should equal the total of Column A unless you have capital gains or losses. Add the amounts
in Column C and D for each line of the worksheet above and transfer the total to the corresponding line of Form IT-203 in the New York
State amount column.

Instructions for Part-year resident income allocation worksheet
If you moved into or out of New York State during 2023, use the Part-year resident income allocation worksheet along with the
specific line instructions for Form IT-203 beginning below to determine your New York State source income for the entire tax year.
Enter only whole dollar amounts.
Resident period is the period you were a New York State resident.
Nonresident period is the period you were a New York State nonresident.

Column A
Enter the amounts you reported on your federal return. Include items you would have to include if you were filing a federal return on the
accrual basis.

Column B
Enter that portion of the Column A amount that you received during your nonresident period. If you moved into New York State, include
items you would have to report if you were filing a federal return on the accrual basis for the period before you changed your resident
status.

Column C
Enter that portion of the Column B amount that you received during your nonresident period from:

•

services you performed in New York State (for example, wages, salaries, termination agreements, covenants not to compete,
stock options, and stock appreciation rights),

•

property located in New York State, and

•

businesses, trades, professions, or occupations conducted in New York State.

If you earned salary or wages both inside and outside of New York State, you must complete Schedule A on Form IT-203-B to
determine the amount that is allocable to New York State. Enter that amount in Column C. For more information, see the instructions for
Form IT-203-B.
If you received income from a termination agreement, covenant not to compete, stock option, restricted stock, or stock appreciation
right, see Form IT-203-F, Multi-Year Allocation Form.

14

Column D
Enter that portion of the Column A amount that you received during your resident period. If you moved out of New York State, include
items you would have to report if you were filing a federal return on the accrual basis for the period before you changed your resident
status.
Transfer the amounts in Column A to the corresponding lines on Form IT-203 in the Federal amount column.
Transfer the amounts in Column E to the corresponding lines on Form IT-203 in the New York State amount column.
Example 1: You moved from Indiana to New York State on August 15, 2023. On your federal return, you report $35,000 in
total wages. Of this amount, you earned $12,000 while you were a New York State resident. On line 1, you would enter
$35,000 in Column A, $23,000 in Column B, $0 in Column C (you earned no income in New York State prior to the move),
$12,000 in Column D, and $12,000 in Column E.
Example 2: You moved from New York State to Georgia on June 10, 2023. On June 1, 2023, your employer awarded you a
guaranteed bonus of $2,000 that it paid to you on July 1, 2023. You must enter the $2,000 bonus in Column D, line 1, since
this is income accruable to your resident period.
Example 3: You moved from New Jersey to New York State on May 10, 2023. You own stock in the XYZ Corporation which,
on May 1, 2023, declared a $1,000 dividend payable on June 1, 2023. You also received $500 a month from rental property
located in New York which you sold on April 30, 2023.
You must report the $1,000 dividend income in Column B on line 3, since this is income accruable to the nonresident period.
You would report the rental income in Column B and in Column C on line 11, since you derived this income from New York
State sources during your nonresident period.

Line instructions for Form IT-203
Line 1: Wages, salaries, tips, etc.
Federal amount column
Enter the total of all wages, salaries, fees, commissions, bonuses, tips, fringe benefits, etc., you reported on your 2023 federal return.
Generally, the amount you enter should be shown in box 1 of your federal Form(s) W-2, Wage and Tax Statement. However, you must
include all of these items even if your employer did not report them on a wage and tax statement or other income statement.
The amount entered on line 1 (wages, salaries, tips, etc.) should be the same as the amount reported on federal Form 1040, line 1z.

New York State amount column
Enter that part of the federal amount that represents services you performed in New York State as a nonresident. This amount cannot
exceed the amount entered in the Federal amount column.

Part-year residents
Also add that part of the federal amount that you earned while you were a resident of New York State.

Allocation of nonresident income earned partially in New York State
If you earned your salary or wages both inside and outside of New York State, you must determine the amount that is allocable to
New York State. This is not necessarily the amount shown in the State wages, tips, etc. box on your Form(s) W-2. To correctly
determine your income earned in New York State, use one of the following methods:

•

To allocate income that does not depend directly on the volume of business transacted (for example, wages), complete
Schedule A, Allocation of wage and salary income to New York State, on Form IT-203-B to determine the amount earned in
New York State.

•

To allocate income from a termination agreement, covenant not to compete, stock option, restricted stock, or stock
appreciation right, complete Form IT-203-F to determine the amount to allocate to New York State.

•

To allocate income that depends entirely on the volume of business transacted, as in the case of a salesperson working on
commission, divide your volume of business transacted in the state by your total volume of business transacted both in and
out of New York State. (The location where the services or sales activities were actually performed determines where business
is transacted.) Multiply your total income subject to allocation by this percentage. This is the amount allocated to New York
State. Submit a schedule with your return showing how you computed this allocation.

If you allocate your personal service income differently, submit a separate schedule showing complete details.
If you do not complete Schedule A of Form IT-203-B (and Form IT-203-F, if applicable) and submit it with your return, it will
delay the processing of your return and could result in penalties and interest.
15

Line 2: Taxable interest income
Federal amount column
Enter the amount you reported on your federal return.

New York State amount column
Enter that part of the federal amount that you received as a nonresident from a business, trade, profession, or occupation carried on in
New York State. If the business is carried on both in and out of New York State, see the instructions for line 6.

Part-year residents
Also add that part of the federal amount that you earned while you were a resident.

Line 3: Ordinary dividends
Federal amount column
Enter the amount you reported on your federal return.

New York State amount column
Enter that part of the federal amount that you received as a nonresident from a business, trade, profession, or occupation carried on in
New York State. If the business is carried on both in and out of New York State, see the instructions for line 6.

Part-year residents
Also add that part of the federal amount that you earned while you were a resident.

Line 4: Taxable refunds, credits, or offsets of state and local income taxes
Federal amount column
Enter the amount you included as income on your federal return. Also enter this amount on line 24, Federal amount column.

New York State amount column
Enter that part of the federal amount that was derived from or connected with New York State sources as a nonresident. Also enter this
amount on line 24, New York State amount column.

Part-year residents
Also add that part of the federal amount that you received while you were a resident. Include this amount on line 24, New York State
amount column.

Line 5: Alimony received
Federal amount column
Enter the amount you reported on your federal return.

New York State amount column
Do not enter alimony you received as a nonresident.

Part-year residents
Enter that part of the federal amount that you received while you were a resident.

Line 6: Business income or loss
Federal amount column
Enter the amount you reported on your federal return and submit a copy of your federal Schedule C.

New York State amount column
Enter that part of the federal amount that you received as a nonresident from a business, trade, or profession you carried on in
New York State.

Part-year residents
Add the part of the federal amount you received while you were a resident.

16

Business carried on in New York State
Your business, trade, profession, or occupation (not including personal service as an employee) is carried on in New York State if you
have, maintain, operate or occupy desk space, an office, a shop, a store, a warehouse, a factory, an agency or other place in New York
State where you regularly carry on your affairs, or transact your business, with a fair measure of permanency and continuity. This
definition is not exclusive.

Business carried on both in and out of New York State
If you carry on your business, trade, or profession both in and out of New York State, and you maintain accounts clearly reflecting
income from the New York operations, enter the net profit or loss from business carried on in New York State.
If the business’s books do not clearly reflect income from New York State operations, you must allocate the income according to a
prescribed formula or an approved alternative method. Complete Form IT-203-A, Business Allocation Schedule, and submit it with Form
IT-203. If you submit an alternative method for allocation, submit all information about your own method of allocation, along with Form
IT-203-A (see the instructions for Form IT-203-A).

Passive activity loss
To report any passive activity losses from New York sources, complete and submit Form IT-182, Passive Activity Loss Limitations for
Nonresidents and Part-Year Residents.

New York City businesses
If you are self-employed and carry on a business, trade, or profession in New York City, you may have to file New York City’s
Form NYC-202, Unincorporated Business Tax Return for Individuals and Single-Member LLCs, or Form NYC-202S, Unincorporated
Business Tax Return for Individuals. See How to get New York City forms. New York State does not administer the New York City
unincorporated business tax.
You must file your Form NYC-202 or NYC-202S at the address specified on that form; do not submit it with your state return.

Line 7: Capital gain or loss
Federal amount column
Enter the amount you reported on your federal return. Submit a copy of federal Schedule D, if required for federal purposes, and any
related schedules. If the copy of federal Schedule D contains gains or losses from the sale of real property, note on the schedule the
state(s) where the property is located.

New York State amount column
Enter your New York capital gain or loss as a nonresident. To compute this amount, use a copy of federal Schedule D (Form 1040) as a
worksheet, and the federal provisions for computing capital gains and losses only for transactions that were from New York sources. If
you have a net capital loss for New York State purposes the loss is limited to $3,000 ($1,500 if you are married and filing separately) on
your New York State return. You must treat any balance of a loss in excess of the amount claimed on your 2023 return as a carryover
loss on returns for later years.
Capital gains and losses from New York State sources (New York State amount column) include:

•

capital gains or losses derived from real or tangible personal property located within New York State, whether or not
connected with a trade or business (including all or a portion of the gain or loss from the sale or exchange of an interest in an
entity if the entity owns real property in New York State or owns shares of stock in a cooperative housing corporation where
the cooperative units relating to the shares are located in New York State, provided that the sum of the fair market values of
such real property, cooperative shares, and related cooperative units equals or exceeds 50% of the fair market value of the
assets the entity has owned for at least two years as of the date of the sale or exchange; for additional information, see
TSB-M-09(5)I, Amendment to the Definition of New York Source Income of a Nonresident Individual and Part Z of Chapter 59
of the Laws of 2017);

•

any gain from the sale, transfer, or other disposition of shares of stock in a cooperative housing corporation in connection with
the grant or transfer of a proprietary leasehold with respect to real property located in New York State, whether or not
connected with a trade or business;

•

capital gains from stock options, if you performed services in New York State for the grantor during the period options were
granted, and the compensation (difference between the option price and the fair market value of the stock at the time the
option was exercised) was not previously reported (see Form IT-203-F);

•

capital gains or losses from stocks, bonds and other intangible personal property used in or connected with a business, trade,
profession, or occupation carried on in New York State; and

•

any capital gain or loss derived from New York sources you received as a member of a partnership, a beneficiary of an estate
or trust, or a shareholder of a New York S corporation (the partnership, S corporation, or estate or trust should provide this
information to you).

If any capital gains or losses are from business property (other than real property) of a business carried on both in and out of New York
State, apply the business allocation percentage (from Form IT-203-A) or an approved alternative method to determine the New York
17

capital gain or loss. Gains and losses from the sale or disposition of real property are not subject to allocation. In all cases, use the
federal tax basis of property in computing capital gains or losses.

Part-year residents
Also add that part of the federal amount that you realized while you were a resident.

Line 8: Other gains or losses
Federal amount column
Enter the amount you reported on your federal return and submit a copy of federal Form 4797.

New York State amount column
Enter your New York gain or loss from the sale or exchange of noncapital assets as a nonresident. To compute this amount, use the
federal provisions for computing gains or losses from the sale or exchange of noncapital assets only for transactions that were from
New York sources.
Noncapital transactions from New York State sources (New York State amount column) are:

•

noncapital transactions included in your federal return relating to property used in connection with a business, trade,
profession, or occupation carried on in New York State, and

•

your share of any noncapital gain or loss you received as a member of a partnership, a beneficiary of an estate or trust, or a
shareholder of a New York S corporation (the partnership, S corporation, or estate or trust should provide this information to
you).

If the business’s books do not clearly reflect the New York gain or loss, you must allocate the gain or loss according to a prescribed
formula or an approved alternative method. Complete Form IT-203-A, Business Allocation Schedule, and submit it with Form IT-203. If
you submit an alternative method for allocation, submit all information about your own method of allocation, along with Form IT-203-A
(see the instructions for Form IT-203-A).

Part-year residents
Also add that part of the federal amount that you realized while you were a resident.

Line 9: Taxable amount of IRA distributions
Federal amount column
Enter the amount you reported on your federal return.

New York State amount column
Do not enter any part of the federal amount you received as a nonresident.

Part-year residents
Enter that part of the federal amount that you received while you were a resident.
To see if you qualify for the pension and annuity income exclusion, see the instructions for line 28.

Line 10: Taxable amount of pensions and annuities
Federal amount column
Enter the taxable amount you reported on your federal return.

New York State amount column
Certain pension income received while a nonresident is not taxable to New York State and should not be included in the New York
State amount column.

•

U.S. Code, Title 4, section 114, prohibits states from taxing nonresidents on income they receive from (a) pension plans
recognized as qualified under the IRC and (b) certain deferred compensation plans that are nonqualified retirement plans but
which meet additional requirements.

•

A pension or other retirement benefit that is not exempt under Title 4 of the U.S. Code, is exempt if it meets the New York
definition of an annuity.

See Publication 36, General Information for Senior Citizens and Retired Persons.
If your pension and annuity income is not exempt from New York tax and is based on services performed inside and outside New York
State, enter the amount you received as a nonresident to the extent that the services were performed in New York State.
18

Part-year residents
Enter that part of the Federal amount column that represents the taxable amount you received while you were a New York State
resident.

Government pensions
If the amount on line 10, either column, represents a pension or other benefit paid by the New York State or a municipal retirement
system (including distributions from the TIAA-CREF Optional Retirement Program) or the United States, its territories or possessions,
political subdivisions of these territories or possessions, the District of Columbia or any agency or instrumentality of any of the above
(including the military), also include this amount on line 25. See the instructions for line 25.

Pension and annuity income exclusion
If you entered an amount on line 10, either column, see the instructions for line 28 to see if you qualify for the pension and annuity
income exclusion.

Line 11: Rental real estate, royalties, partnerships, S corporations, trusts, etc.
Federal amount column
Enter the amount you reported on your federal return and submit a copy of federal Schedule E (Form 1040).

New York State amount column
Enter that part of the federal amount you received as a nonresident that was derived from or connected with New York State sources.
See the instructions below relating to specific types of income.

•

Rent and royalty income from personal property – Include rents and royalties from

o

tangible personal property not used in a business, if the property is located in New York State; and

o

tangible and intangible personal property used in or connected with a business, trade, profession or occupation you
carried on in New York State. If you carry on a business both in and out of New York State, determine your income
from New York State sources by applying the business allocation percentage (from Form IT-203-A) or an alternate
allocation method. Include also your share of any rental or royalty income you received as a member of a partnership
or as a beneficiary of an estate or trust (this information should be provided to you by your partnership or the estate
or trust).

•

Rent from real property – Include rents and royalties from real property located in New York State, whether or not used in
connection with a business. Also include your share of any rental or royalty income you received as a member of a partnership
or as a beneficiary of an estate or trust (this information should be provided to you by your partnership or the estate or trust).

•

Partnership income – Include your distributive share of partnership income as reported on your Form IT-204-IP, New York
Partner’s Schedule K-1. Include only those items of partnership income that you are not required to include elsewhere in
the New York State amount column. For example, your share of a partnership’s New York capital gain is included on line 7.
(See Special rule for part-year residents.)

•

S corporation income – Include your pro rata share of New York S corporation income, gain, loss and deduction (this
information should be provided to you by the S corporation). Include only those items of S corporation income that you are not
required to include elsewhere in the New York State amount column. For example, your share of S corporation capital gains is
included on line 7. If the corporation carried on business both in and out of New York State, use the corporation’s business
apportionment factor determined under Article 9-A, to compute the amount of your income or loss derived from or connected
with New York State sources. For additional information visit our website. (See Special rule for part-year residents.)

•

Estate and trust income – Include your share of estate or trust income from New York State sources (this information should
be provided to you by the fiduciary). Include only those items of estate or trust income that you are not required to include
elsewhere in the New York State amount column. For example, your share of the estate’s or trust’s capital gains is included on
line 7. (See Special rule for part-year residents below.)

•

Passive activity loss – Complete and submit Form IT-182, Passive Activity Loss Limitations for Nonresidents and Part-Year
Residents, to report your passive activity losses from New York sources. Your passive activity loss as a nonresident must be
recomputed to determine the amounts that would be allowed if your federal adjusted gross income took into account only
items of income, gain, loss, or deduction derived from or connected with New York sources.

Part-year residents
Also add that part of the federal amount that you received while you were a resident. Any passive activity loss must be recomputed as if
you filed separate federal returns for your resident and nonresident periods.
Special rule: Part-year residents must determine, and include in the New York State amount column, the portion of their share of
income from a partnership, S corporation, or estate or trust using either of two methods of allocation: the direct accounting method or
the proration method.
19

Note: If you are a partner, shareholder, or beneficiary of more than one entity, apply either method (direct accounting method or
proration method) separately to each entity. You are not required to use the same method for all entities.

Direct accounting method
The direct accounting method requires you to determine the actual amount of your share of income attributable to the period you were a
resident and nonresident during the partnership’s, S corporation’s, or estate’s or trust’s tax year ending within your tax year. If you elect
to use the direct accounting method, you must use the partnership’s, S corporation’s, or estate’s or trust’s method of accounting for
federal income tax purposes to determine the amount attributable to each period. In addition, you must use the method for all items of
income, gain, loss and deduction that are included in your distributive share of partnership income, your pro rata share of S corporation
income, or your share of estate or trust income.

Proration method
Allocate the items of income based on the number of days you were a resident and the number of days you were a nonresident during
the partnership’s, S corporation’s, or estate’s or trust’s tax year which ends during your tax year. The portion attributable to your
nonresident period is limited to the percentage of income derived from or connected with New York State sources. (Obtain this
percentage from your partnership, S corporation, or estate or trust.) The following formula illustrates the computation:

Example 1: Sam Smith was a partner in partnership Q during 2023. Partnership Q’s tax year ends on December 31, 2023.
Partnership Q carried on business both within and outside New York State and has determined that the partnership’s New
York allocation percentage is 65%. For tax year 2023, the distributive share of income from partnership Q included in
Sam’s Federal amount column on Form IT-203 was $40,000. Sam changed residence