2010 Coordinators Training
November 9, 2010
Mwisa Chisunka
Senior Tax Analyst
Mwisa_chisunka@tax.state.ny.us
www.nystax.gov
Private and Confidential
 In accordance with Internal Revenue Service Taxpayers
utilizing volunteer program services provide personal
information to the volunteers, such as names, addresses,
social security numbers, birth dates, and bank account
information.
 Therefore, partners and volunteers must keep the
information confidential and protect it from unauthorized
individuals and misuse.
NYS Tax Contact Information
 Tax Practitioners Hot Line - (518) 457-5451
 Forms Control Unit phone number: (518) 244-1911
TP-3 Forms Order (Can order TP-300 and TP-301)
 E-file Helpdesk line - 518) 457-6387
 Online Tax Center Assistance (518) 485-7884
 Child Support Helpline 1-888-208-4485 (request review if
noncustodial EITC is denied)
 1099-G: (518) 485-0799l
 www.nystax.gov
Resources Available for Volunteers
 TP -300 Quick Reference Guide

TP -301 NYS Intake Sheet
 Publication 80 – General Information for NYS residents
 Publication 310NY – NYS Earned Income Tax Credit
 Pub10-W-FAQ’s -College Tuition Credit or Itemized Deduction
 Publication 94 – Should I be Paying Estimated taxes
 Publication 84- Handbook for e-filers of 2009 PIT Returns.
 Publication 99IND-NYS/NYC Income tax credits for Individuals
Resources Available for Volunteers
 Publication 22 - FAQS: NYS Real Property Tax Credit For
Homeowners and Renters
 Publication 36 - General Information for Senior Citizens and
Retired Persons
 Publication 38 – Your Rights as a Taxpayer
 Publication 46 - Common Reasons for Income Tax Adjustments
 Publication 140-W-FAQs: New York State Lottery Winners What are my Tax Responsibilities for New York State
Review of 2009 – Most Common Errors
 Amount of public employee 414(h) retirement contribution, subject to
NYS tax, reported on return not equal to amount reported on Form(s)
W-2. (Reject Code 0103)
 Withholding (NY State, NY City, or Yonkers) should not be greater than
or equal to wages. (code 502)
 Required information missing for qualifying person reported on
Form IT-216. (code 376)
 NYS wages should not be equal to zero when W-2 shows NY wages.
(code 100)
 Amount of NYS withholding reported on return not equal to amount
reported on wage and tax statements. (code 129)
 NY City withholding entered on W-2 not equal to amount on the return,
or NY City withholding on W-2 not carried to NY City withholding
claimed on the return, but the W-2 does not have NY City withholding.
(code 130)
Review of 2009 – Most Common Errors
 NYS wages cannot be more than federal wages. (code 98)
 Amount of wages, tips and other compensation reported on return less
than amount reported on Form(s) W-2 and/or 1099-R. (code 101)
 A computational error occurred in calculating the NYS Adjusted Gross
Income on return. (code 105)
 Negative amount not allowed for these lines. (code 99)
 The return was rejected due to an inappropriate city tax computation; fullyear residency for NYC or Yonkers not properly indicated. (code 110)
 One Child’s Social Security Number cannot be the same as another
child’s. (code 650)
Site Reviews
 The New York State Department of Taxation and Finance:
• Conducted 62 statewide site reviews - (33 sites downstate, 29 sites
upstate). Three of the sites were closed (2 sites downstate, 1 site
upstate).
 Reviews was conducted to determine:
• whether the sites had NYS tax law training,
• whether the sites utilized the NYS Intake Sheet,
• whether the site utilized the TP-3 order form,
• whether the site was E-file, Paper or E-file/Paper whether the site
had a quality review process (utilizing IRS criteria).
Site Reviews
 Special Training Needs or Recommendations from volunteers:
• Training:
– IT 214
– Pensions ( Q and A on Pensions for senior sites )
– 414 H
– More Credit Training
– Resident tax credit and nonresident training for sites located near
bordering states
• Recommendations:
– NYS general brochure or guidelines on the non custodial EITC
– phone number for denial of noncustodial EITC added in the TP-300
– IT-245 (firefighter credit) added to the taxwise tree.
– Taxpayer Advocate Number added to TP-300
– IT-2105 estimated taxes added to taxwise
– Increase the amount for NYS filing requirement
Changes for 2010 Training
 Department will create a URL for volunteers to view the power point and
pertinent updates
 Order number of instructions needed for your site on form TP-3
 NYS will provide training:
• Basic/ Intermediate (include basic credits, itemized deductions and
Taxwise updates)
• Advanced (in addition to information covered in intermediate will
cover nonresident issues and resident tax credit issues)
• Military (only to those trained in IRS military training)
• Nonresident aliens (to scholars and students in conjunction with IRS
training)
Changes for 2010 Training
 Department will provide an addendum to the Federal Publication 4491W for
NYS training for E-file users.
 Addendum will consist of:
• an intake sheet (TP-301) completed
• answer sheet listing various lines on the NYS income tax returns for efiling.
WHAT’S NEW FOR 2010?
New York Itemized Deductions
 Limit of itemized deductions
• New York adjusted gross income over $1million and not more than
$10 million, the New York itemized deduction is limited to 50% of
charitable contributions (Tax years 2010-2012).
• New York AGI over $10 million, the New York itemized deduction is
limited to 25% of charitable contributions (Tax years 2010-2012).
 Change in calculating itemized deductions
• Beginning for tax year 1/1/2010, New York will no longer allow the
federal deduction for state and local sales tax in the computation of an
individual’s New York itemized deduction.

TSB-M-10(8)I Amendments Affecting New York
Itemized Deductions
Increase in New York City Income Taxes
 The total tax rate for taxable income in excess of $500,000
has increased from 3.648 percent to 3.876 percent.
 Effective for tax years beginning after 2009.
 TSB-M-10(7) I - New York City Resident Tax Rates
New Contribution Lines
 Volunteer Firefighting and Volunteer Emergency Services
Recruitment and Retention Fund
• Line 36 on IT-150
• Line 60 on IT-201
• Line 57 on IT-203
Limits the Basic STAR Exemption
 Beginning with school year 2011-2012, the BASIC STAR real
property tax exemption is eliminated to homeowners with
affiliated income in excess of $500,000.
 The law eliminates the STAR tax rate reduction for New York
City income taxpayers with taxable income in excess of
$500,000. The base rate for these taxpayers will increase from
3.2 to 3.4 percent for tax year 2010 and after.
Build America Bond (BAB) Interest
 Interest income from BABs will be treated the same as if the
interest was from any other tax exempt obligation issued by a
state or local government:
• Issued by New York State or its local governments is not
subject to tax
• Issued by states and local governments other than New York
State or its local governments, is subject to tax.
• A subtraction is available for interest income attributable to a BAB
issued by New York State or its local governments.
 Special condition code A-6 – if BAB interest is included in your federal
adjusted gross income.
 TSB-M-10(4)I, Treatment of Interest Income from Build
America Bonds
Automatic 90 Day Extension for Certain Taxpayers
 If your spouse died within 30 days before your return is
due, you qualify for an automatic 90-day extension to file
your return. (Chapter 429 – A7162B/S5789A)
 Enter code D9 if you qualify for an automatic extension of
time to file because of the death of your spouse.
Due Date of the 2010 personal income tax return
 Friday April 15th is Emancipation Day in
Washington D.C. so the deadline for filing a
personal income tax return has been extended.
 NYS will conform with the IRS and the personal
income tax return will be due April 18, 2011
Historic Homeownership Rehabilitation Credit
 Amendments to Historic Homeownership Rehabilitation Credit:
• The definition of a qualified historic home has been revised
• The credit limitation per year has been increased from $25,000 to
$50,000 for most taxpayers, and
• The credit is now refundable for certain taxpayers.
 TSB-M-10(2)C, (3)I, The Rehabilitation of Historic Properties
Credit and the Historic Homeownership Rehabilitation Credit.
ONLINE SERVICES
WWW.NYSTAX.GOV
Online Services (formerly Online Tax Center)
In early 2011, we’ll be adding new features to our online services accounts.
• enhanced account view
• e-mail notifications
• respond to department notices online
• new Web site design (implemented mid-December)
We’ll notify taxpayers and practitioners of the improvements via email,
subscription service, and paper notices.
Online Services (formerly Online Tax Center)
Account View:
The new landing page will allow taxpayers to view a comprehensive
customized summary of their tax account. The page will include:
• List of recent messages from the Tax Department
• List of any recent tax bills, including tax type, date, and balance
• List of recent filings, including confirmation number and filing method
(paper or e-file). Initially supporting Sales Tax and Individual Filings.
This page will include the taxpayer’s contact information, which will be
easy to revise.
Online Services (formerly Online Tax Center)
E-mail Notifications:
• Taxpayers can elect to receive email notifications of certain nonstatutory department notices, including assessments.
• This is the first time that the department is using email to communicate
with taxpayers about their personal tax account.
• Taxpayer will receive an email with a prompt that they have an urgent
message from the Tax Department. The e-mail won’t include any
confidential tax information.
• Taxpayer then goes to their online account, and in a secure
environment, can view an electronic version of the paper notice they
would have received.
• NOTE: This will be the only notice the taxpayer receives. The
department won’t be sending a paper notice.
Online Services (formerly Online Tax Center)
Respond to Department Notices:
• Taxpayers will be able to respond online to selected department
notices.
• Whether the taxpayer received an electronic or traditional paper notice,
they’ll be able to respond online.
• Only the selected non-statutory notices are eligible for this service.
• NOTE: The program won’t allow taxpayers to respond to notices that
aren’t included in the program.
Online Services (formerly Online Tax Center)
Respond to Department Notices:
First group of notices to use this service will include:
• Assessments,
• sales tax and corporation tax delinquency notices,
• sales tax reclassification notices and
• audit notices asking the taxpayer for additional information. The
additional information can be scanned and sent along with the
response.
NYS Department of Taxation and Finance
Web Site Redesign:
 Our redesigned Web site will have a user-friendly look and feel with easier to
find information and services
 The new design results from an in-depth study of how customers use the
site (interviews, data analysis, etc.) and prototype testing with real users.
ADDITIONAL INFORMATION
FOR COORDINATORS
Refund Anticipation Loan Facilitators Registration
 A facilitator is a person who individually or in conjunction or
cooperation with another person:
• solicits the execution of, processes, receives, or accepts
an application or agreement for a refund anticipation loan
or refund anticipation check;
• serves or collects upon a refund anticipation loan or
refund anticipation check; or
• in any other manner facilitates the making of a refund
 Note: An individual who may meet one of the exclusions from being
considered a tax return preparer, for registration purposes, can still be
considered a facilitator and be subject to the registration requirements
Requirement of Tax and Finance to Create a Task Force
 The Task Force will examine the need for additional
oversight of tax return preparers.
 The Task Force will include representatives from NYS
Department of Taxation and Finance, representatives from
Office of Temporary and Disability Assistance, practitioner
participants, CPAs , etc
 The Task Force will prepare a report making
recommendations for the appropriate professional
qualifications, including, but not limited to, minimum
educational qualifications and continuing education
requirements for tax return preparers.
Where to file PAPER returns – new mailing address
 If enclosing a payment (check or money order), mail your
return to:
• STATE PROCESSING CENTER
• PO BOX 15555
• ALBANY NY 12212-5555
 If not enclosing a payment, mail your return to:
• STATE PROCESSING CENTER
• PO BOX 61000
• ALBANY NY 12261-0001
NOTE – address to mail payment with the IT-2105 (estimated
tax payment) and address for IT-201-V (payment voucher for
e-filing) are listed in the instructions of the form and these
payments are sent to Binghamton NY
Amended Income Tax Returns
IT-201X, IT-150X, and IT-203X
 Amended returns must be completed as if you were filing an
original return.
 Attach to the IT-150-X, IT-201-X or IT-203-X amended
return any:
• amended credit claim or other form that you attached to your
original return (do not attach original version)
• new credit form or any other form that you are filing for the
first time with your amended return
• copy of any tax form, credit form, IT-2 or related withholding
form, or other form that you attached to your original return
and are not amending
New York State and Local Sales Tax
Line 35 on IT150 or line 59 on IT-201
 NYS Sales Tax is owed if you purchase property
or a service delivered to YOU in New York State
without payment of sales and use tax; such
purchases through the internet, by catalog, or
from television shopping channels
 most tangible personal property is subject to tax
• clothing
• jewelry
• electronic equipment
• furniture
•
•
•
•
prewritten software
books (excluding text books)
compact disk
videos, etc.
www.nystax.gov
Acknowledgements
 On a Fed/State filing, if the Federal tax return is rejected, the
state return is not received by the IRS.
 Once we receive a return, we will accept or reject the return
and issue an acknowledgement.
 The New York acknowledgement is generally issued 24-48
hours after the return is e-filed.
USING TAX WISE
 MUST Enter on NYS Tax Form:
• School District Name
• School District Code
• County of Resident
 Tax Wise will automatically calculate the Household Credit
 Line 59 – NYS Sales Tax must have an entry
 IT214 and NYC-210 are the only forms we accept as stand
alone. However, if e-filing must be accompanied by a
person income tax return – IT-201, IT-203 or IT-150.
Tax Credits automatically calculated on New York State
software when calculated on IRS return
 Household Credit
 IT-213 - Empire Child Tax Credit – From federal child tax credit
 IT-215 – Earned income tax credit – From federal earned
income tax credit
 IT-216 – Child care and Dependent Credit – From federal 2441
IRS forms that must be included with the NYS e-file return
 Schedule C Profit or Loss from Business
 Schedule C-EZ Net Profit from Business
 Schedule D Capital Gains and Losses
 Schedule E Supplemental Income and Loss
 Schedule EIC Earned Income Credit
 Schedule F Profit or Loss from Farming
 Form W-2 Wage and Tax Statement
 Form 1099-R Distributions from Pensions, Annuities,
Retirement or Profit-Sharing Plans,IRAs, Insurance
Contracts, etc.
Addition adjustment on NYS return
 The 414H and amount must be entered on line 14 on the W-2.
 IF NYC IRC 125 must be entered on box 14 of the W-2
 Other Addition modifications must be included on proper
addition lines of the IT-201
Subtraction adjustments on NYS return
 Must be entered on appropriate line of NYS return
 Income tax refund is automatically subtracted
 Social security income is automatically subtracted
 Contributions to a NYS 529 College Savings Plan
 Pensions - Must indicated on 1099 if the pensions is from
NYS and local government of if private pension entitled to
exclusion if taxpayer reaches age 59 & ½.
Pension subtraction on Tax Wise
PRIVATE - If a taxpayer is 59 ½ or older, he or she can subtract up to
$20,000 from the qualifying pension and annuity income from his or
her federal adjusted gross income (1099R)
To enter the amount on line 29 of the IT-201 page 2 (or line 18,page 1,
on the IT-150), enter the amount in the 1099R, and put an “x” in box 1
which is located left to box 13/local taxes.
PUBLIC - Pensions of New York State, local government and the federal
government (form 1099R)
The entire pension is excluded & entered on line 26, page 2 onIT201(or line 16,page 1 on the IT-150). To enter the amount on line 26
of the IT-201 page 2, enter the amount in the 1099R, and put an “x” in
box 2 which is located left to box 13/local taxes
Advisory Decisions
 TSBA -09 (09)I and 09(10)I - Whether distributions from an IRA that
was funded with assets rolled over from a IRC §403(b) tax-deferred
annuity plan are subject to New York State personal income tax.
 TSB-A-09 (07) I - Whether distributions from an Individual Retirement
Account (IRA) are subject to personal income tax if the taxpayer rolls
over a Federal Reserve Bank of New York 401K Thrift Plan to the IRA.
 TSB-A-10(02)I - Whether marriage to a same-sex partner will be
recognized for New York State personal income tax purposes.
 TSB-A-10(06)I - Whether a distribution from an IRA established by
means of a tax-free rollover from the State University of New York
Optional Retirement Program may be federal adjusted gross income
when computing New York adjusted gross income.
 TSB-A-10(08)I - Whether in-service distributions received from the
Federal Employees' Retirement System qualify for the income
subtraction modification under Tax Law §612(c)(3)(ii).
E-file Signature Requirements
 There is no need to mail Forms W-2 or other supporting
documents to the Tax Department.
 Volunteers are required to have the taxpayer sign the
TR-579-IT for each return that is e-filed. The TR-579-IT
should be retained by the volunteer with the IRS (federal)
signature document.
 Volunteers should:
• enter their SITE ID number where requesting Federal ID
number or SS number
• and Name of Site where requesting name of practitioner.
• Ignore the line “Preparer’s NYTPRIN”. This is for paid
preparers that are required to register.
If using the Taxwise Software and a paper return must be
filed what you need to know
 The NYS forms IT-2, IT-1099-R and IT-1099-UI are for paper
filing only; if software is used to prepare the return and the
return is NOT E-filed, print IT-2 for all W-2’s.
 Print IT-1099R if there is NYS withholding tax on the pensions.
 Print IT-1099 UI if withholding on unemployment insurance
Payment Options on E-filing
 Electronic Funds Transfer (EFT) from a checking or savings account.
• EFT allows a taxpayer to defer payment until the return due date,
regardless of the filing date of the return.
• We will not debit the account for more than the amount
authorized by the taxpayer.
• We will reject returns if we determine that the account information
is incorrect.
 Credit Card
 Mail in a check with Form IT-201-V
Direct Deposit for Tax Refunds
 e-file with Direct Deposit is the fastest way to get a refund.
 If a computational error results in a balance due on the
return, we won’t use the account information provided for a
direct deposit to debit the taxpayers account.
 We will reject returns if we determine that the account
information is incorrect.
 NYS will not support split refunds
Extensions
 Form IT-370,will extend the due date for 6 months
 You may e-file extensions using your e-file software or
directly on our website.
 You can file Form IT-370 on-line on @ www.nystax.gov.
Payment options for our on-line extension include ACH debit,
credit card and checks.
 No signature requirement if no tax due.
Estimated taxes
 You are not required to fill estimated taxes if you expect to owe less
than $300 of New York State, city of New York, or city of Yonkers
income tax after deducting tax withheld and credits that you are
entitled to claim.
 Payment - April 15, June 15, Sept 15 and Jan 15
 NYS does not provide statement of accounts and does not provide
vouchers (IT-2105V).
 The easiest and fastest way for individuals to make estimated tax
payments is through our Online tax Center. Individuals can also view
and reconcile their estimated tax payments electronically.
 NOTE: Free e-filing available by visiting
• http://www.tax.state.ny.us/elf/free_efile_info.htm
• Qualifications for free e-filing vary by software
providers. Generally, if a taxpayer qualifies for EITC, or
under the age of 25, or over 65, or active military or
Federal adjusted gross income under $57,000.
Software providers include:
– TaxSlayer.com
– Freedomtax.com
– I-CAN!
Online Services
 Create an online service account to:
• Pay estimated income and manage your estimated tax
account
• View and pay tax bills (all tax types)
• Use Metropolitan Commuter Transportation Mobility Tax
(MCTMT) Web File
• Use tax preparer registration and certificate reprint
(register for tax year 2011 starting in mid-November)
• Report change of address
Thank You
Questions?
The material included in this slide show is intended only to highlight the program as of the date
presented. For more comprehensive information, please refer to our TSB-M’s, forms,
instructions, publications ,tax laws, and amendments.