Who is required to file Form Y-203?
You must file Form Y-203, Yonkers Nonresident Earnings Tax Return, if you file or are required to file a New York State return, and you are a nonresident of Yonkers who earns wages or carries on a trade or business there, or are a member of a partnership that carries on a trade or business there.
If you and your spouse are both subject to the Yonkers nonresident earnings tax, you each must file a separate Form Y-203 and submit it with your New York State return. If you file a joint New York State return, combine your Yonkers nonresident earnings tax from each Form Y-203 and enter the total on your New York State return.
You do not have to file a Yonkers nonresident earnings tax return if you meet all of these conditions:
- You do not have to file a New York State income tax return; and
- You were a Yonkers nonresident for the entire year; and
- Your income from Yonkers sources consisted only of wages; and
- Total wages you received for the year (from all employers) subject to Yonkers nonresident earnings tax was not more than $3,000; or you received wages from only one employer and the correct amount of Yonkers nonresident earnings tax was withheld.
Wages as defined under section 3401(a) of the Internal Revenue Code (IRC) include all payments, and the cash value of all payments made in any form other than cash, for services performed by an employee for an employer.
Wages also include the following:
- The amount of 414(h) contributions shown on your federal Form W-2 wage and tax statement(s), made by:
- A member of the New York State and Local Retirement Systems, which include the New York State Employees' Retirement System and the New York State Police and Fire Retirement System;
- A member of the New York State Teacher's Retirement System;
- An employee of the State or City University of New York who belongs to the Optional Retirement Program;
- A member of the New York City Employees' Retirement System, the New York City Teachers' Retirement System, the New York City Board of Education Retirement System, the New York City Police Pension Fund, or the New York City Fire Department Pension Fund; and
- Members of the Manhattan and Bronx Surface Transit Operating Authority (MABSTOA) Pension Plan.
- The IRC 125 amount(s) shown on your federal Form W-2 wage and tax statement(s), that was deducted or deferred from your salary (section 612(b)(31) of the Tax Law) under a flexible benefits program established on your behalf by the city of New York and certain other New York City public employers (City University of New York, New York City Health and Hospitals Corporation, New York City Transit Authority, New York City Housing Authority, New York City Off-Track Betting Corporation, New York City Rehabilitation Mortgage Insurance Corporation, New York City Board of Education, New York City School Construction Authority, Manhattan and Bronx Surface Transit Operating Authority, or the Staten Island Rapid Transit Authority).
- The salary reduction for the health insurance and welfare benefits fund surcharge of former fractional plan members of the New York City Employees or Board of Education Employees Retirement System pursuant to section 12-126.1 of the New York City Administrative Code, and of certain correction and sanitation workers pursuant to section 12-126.2 of the New York City Administrative Code.
Wages do not include unemployment compensation, fees paid to a public officer, payment for active service as a member of the armed forces of the United States, or difficulty of care payments erroneously reported as wages.
Other employee compensation includes but is not limited to salaries, fees, bonuses, tips, commissions on sales or on insurance premiums, severance pay, and vacation allowances that are subject to withholding under section 3401(a) of the IRC.
Net earnings from self-employment as defined under section 1402(a) of the IRC consist of your gross income from any trade or business carried on by you, minus trade or business deductions allowed under the IRC, plus your distributive share (whether or not distributed) of income or loss from a trade or business carried on by a partnership of which you are a member. Limited partners are only considered to receive net earnings from self-employment if the income received represents guaranteed payments for services rendered. The deduction for wages and salaries paid or incurred for the tax year that was disallowed according to section 280C of the IRC is allowed in figuring your net earnings from self-employment.
Net earnings from self-employment do not include:
- rental income from real estate and from personal property leased with the real estate, together with the deductions attributed to it, unless received in the course of a trade or business as a real estate dealer;
- dividends and interest not received in the ordinary course of a trade or business as a dealer in stocks or securities;
- gain or loss from the sale or exchange of capital assets, or from the sale, exchange, or involuntary conversion of property other than stock in trade;
- any deduction for net operating losses;
- retirement payments received by a partner according to a written plan excluded under IRC section 1402(a)(10).