NY Non-Resident Return

[Yardley CPA]

I efiled an NY IT-203 return for a New Jersey Resident who did not work or live in NY for any portion of the year. He received a W2 as a result of severance package. After completing the return, he ends up with zero NY income and receives a refund for his entire NY W/H. However, the IT-203 does not populate the standard or itemized deduction field because his income ends up being zero. As a result of no figure in this field, the return was rejected. Any idea if I am doing something incorrectly? Or any idea on how to fix the issue? I do not prepare all that many NY returns, but it seems to be correct. Thanks!!!

[jainen]

>>zero NY income... it seems to be correct<<

Are you sure? Because even for a non-resident, New York taxable income is calculated from world-wide income as reported on the federal 1040, without regard to how much of that might be New York source.

[Yardley CPA]

>>zero NY income... it seems to be correct<<

Are you sure? Because even for a non-resident, New York taxable income is calculated from world-wide income as reported on the federal 1040, without regard to how much of that might be New York source.

I filled out an IT203-B to reflect he did not work anytime at all in New York during 2007. He never went into the office. It was a severance. So, the IT203-B produces 0 taxable income in NY on the IT-203 and the Itemized/Standard deduction automatically populates with nothing.

[Lion EA]

Better read the NY directions. I had a colleague who had NY severence for a CT resident last year. I'm only remembering bits since it wasn't my client and was a year ago, but seems NY deemed the severence paid for services rendered in NY, or maybe a ratio. But, read the NY directions. And, think my colleague ended up calling NY after client received an invoice!