New York Military Exemption?

[Chowdahead]

I am doing my cousin's taxes. He is stationed abroad but has his legal residency in New York State. He has some rental property in NJ.

He sent me a copy of his 2009 return, which was prepared by HR Block in NJ. I noticed he paid over $800 in NYS income tax. He mentioned that he thought he was exempt. I did some research online and I did find that military members may be exempt. He hasn't lived in NY since he joined the military.

I scoured the NY return in ATX but I cannot find a reference to any military status. Does anyone here know if there is an exemption. If so, where should I find it in ATX?

[GraceNY]

I'm no expert on military, but can point you to a NYS publication that may be helpful.

Go to www.tax.ny.gov. Click on Tax Professionals at the top. Choose Guidance, Regs and Laws from the left hand column. Select Publications by number. Scroll down to Publication 361: NYS Income Tax Information for Military Personnel and Veterans.

I think the only exemption pertains to "combat pay." Then, you would use C7 in Box E on the NYS return.

Hope this helps...

Grace

[Hahn1040]

See New York Pub 361: http://www.tax.ny.gov/pdf/publications/income/pub361.pdf

If you meet all of the conditions in either Group A or Group B, you are

considered a nonresident for the tax year.

The military member files the nonresident return to receive a refund of New York Tax with held.

Group A

1. You did not maintain any permanent place of abode in New York

State during the tax year; and

2. you maintained a permanent place of abode outside New York State

during the entire tax year; and

3. you spent 30 days or less (any part of a day is a day for this purpose)

in New York State during the tax year.

Group B

1. You were in a foreign country for at least 450 days during any period

of 548 consecutive days; and

2. you, your spouse (unless legally separated) and minor children spent

90 days or less (any part of a day is a day for this purpose) in

New York State during this 548-day period; and

3. during the nonresident portion of the taxable year in which the

548-day period begins, and during the nonresident portion of the

taxable year in which the 548-day period ends, you were present in

New York State for no more than the number of days which bears the

same ratio to 90 as the number of days in such portion of the taxable

year bears to 548. This condition is illustrated by the following

formula:

Number of days in the Maximum number

nonresident portion x 90 = of days allowed in

548 New York State

Publication 361 (1/11)

7

The pub gives specifics of what qualifies as a "permanent place of abode"

[Chowdahead]

This was the info that I found on NYS website, and I believe he qualifies under these criteria, since his wife and kid live in NJ. They must have spent part of one day in New York at some point within the last year.

However, my question is, how do I get ATX to recognize the exemption?

If he doesn't claim the exemtion he is basically going to pay $700 this year in NYS taxes since th military did not withhold any NYS income tax from his pay. On other states, such as Maryland, I have found specific checkboxes that would force the calculation.

I don't see anything like that in ATX on the NYS forms. I was hoping a New York preparer here could point it out to me.

[Hahn1040]

Provided that he qualifies : no perm place of abode in NY, maintains perm place of abode out of ny for entire year and did not spend 30 days in NY during the year-

use the non resident form 203

on the worksheet for income allocation, take the military wages out of the income from new york state sources column

then there will be no NY income

and no tax