Whether you work for a company in the state of New York or earn money from some other source there, you'll often need to file a tax return as a resident or nonresident. The New York State Department of Taxation and Finance will need you to file the right tax return forms by the April tax deadline as well as arrange for paying any taxes due. You can take advantage of the state's tax website where you can set up an account and handle transactions for tax purposes.
Who Must File New York Income Taxes?
New York tax laws require full-year residents to file a state tax return if they're subject to federal tax filing or they either expect a refund or want to use refundable credits. Also, you may end up needing to file a New York return without a federal one if your recomputed state income exceeds $3,100 as a single dependent or $4,000 for other filing statuses.
Part-year New York residents may need to file if their state income is more than the standard deduction based on filing status or if they have taxable lump-sum distributions. Like full-year residents, they also need to file to claim refundable credit or get a tax refund. Most of these New York filing rules apply to nonresidents as well.
What Are the Forms to Use?
The New York State Department of Taxation and Finance has two state income tax return forms that filers will use depending on their residency status. If you're a full-year resident, you'll use the standard Form IT-201. Otherwise, you'll use Form IT-203 if you're either a nonresident or you're only a part-year resident.
Both tax forms can require a variety of supplemental forms that you'll fill out and attach. For example, there's Form IT-201-ATT or IT-203-ATT for reporting other taxes and credits. Popular forms also include Form IT-196 for itemized deductions and Form IT-225 for modifications to your income.
What Is the Tax Rate in New York?
For the 2021 tax year, New York has 10 income tax rates depending on earnings and filing status:
- 4 percent if your income is $0 to $8,500 (filing single) or $0 to $17,150 (married filing jointly)
- 4.5 percent if your income is $8,501 to $11,700 (filing single) or $17,151 to $23,600 (married filing jointly)
- 5.25 percent if your income is $11,701 to $13,900 (filing single) or $23,601 to $27,900 (married filing jointly)
- 5.9 percent if your income is $13,901 to $21,400 (filing single) or $27,901 to $43,000 (married filing jointly)
- 5.97 percent if your income is $21,401 to $80,650 (filing single), $43,001 to $161,550 (married filing jointly)
- 6.33 percent if your income is $80,651 to $215,400 (filing single) or $161,551 to $323,200 (married filing jointly)
- 6.85 percent if your income is $215,401 to $1,077,550 (filing single) or $323,201 to $2,155,350 (married filing jointly)
- 9.65 percent if your income is $1,077,551 to $5,000,000 (filing single), $2,155,351 to $5,000,000 (married filing jointly)
- 10.3 percent if your income is $5,000,001 to $25,000,000 (filing single and married filing jointly)
- 10.9 percent if your income is $25,000,001+ (filing single and married filing jointly)
What Are the Filing Deadline and Extension Process?
In line with the federal income tax return deadline the IRS set, the New York state tax filing deadline falls on April 18, 2022. This is a few days later than the usual April 15 deadline due to the Good Friday holiday. You'll also need to have paid your New York taxes by this date.
Taxpayers can get an extra six months to file if they request an extension from the New York Department of Taxation and Finance. You can submit an online form on the state tax website as early as January 2022, or you can submit your extension request through third-party tax software or a professional tax preparer.
Your new state tax return deadline would be October 17, 2022. However, you'll need to pay your estimated owed taxes at the time of your extension request.
What Are the Penalties for Late Filing and Underpayment of Taxes?
You can avoid a late filing penalty in New York with a tax return extension. Otherwise, you'll have to pay a monthly tax penalty of 5 percent of your unpaid N.Y. state tax. If you file within 60 days, the maximum penalty will be 25 percent of the taxes owed. After this point, the late filing penalty goes up to a minimum of either the whole tax amount or $100, whichever is less.
Regardless of your extension status, you'll also have to pay interest on your unpaid tax amount along with a monthly late payment penalty of 0.5 percent of the amount owed. This penalty will accrue until you've either paid in full or reached a penalty of 25 percent of the taxes owed.
If you end up owing more taxes than you can afford, you can look into getting an installment payment agreement from the state. You can use your N.Y. Online Services account to request to make up to 36 monthly payments for a state tax debt of no more than $20,000. This won't prevent interest from accruing, however.
Where Do I Mail/E-file My New York Return?
If you'd like to e-file your New York state tax return, you can consult a paid tax preparer or do your taxes yourself using third-party tax preparation software.
If you make no more than $72,000 a year, you may get to file both your New York return and federal tax return free thanks to the Free File Alliance. Some affiliated providers include TaxAct and TaxSlayer, and free filing criteria will vary by provider. You can also use another online service and pay any fee required.
The state accepts mailed returns using one of three addresses depending on whether you're including a tax payment and which delivery service you use:
- With payment, USPS: State Processing Center, P.O. Box 15555, Albany, NY 12212-5555
- No payment, USPS: State Processing Center, P.O. Box 61000, Albany, NY 12261-0001
- With/without payment, not USPS: NYS Tax Department, RPC - PIT, 90 Cohoes Avenue, Green Island, NY 12183-1515
How Do I Pay Taxes Due?
If you want to pay your New York taxes online and e-file through tax preparation software, then you could submit your payment with a bank account or card as part of the process.
Otherwise, you can use your Individual Online Services account on the Department of Taxation and Finance website to make payments and manage your tax information. You can make fee-free tax payments from a bank account or pay a 2.25 percent fee for a credit card payment.
Alternatively, you can use Form IT-201-V and mail a money order or check for your N.Y. personal income tax due. You can view this voucher for more details on mailing it based on your original tax filing method.
Where Can I Check My New York Refund Status?
The time required to receive your New York income tax refund depends on both the filing method and the payment option chosen. You might get the refund within a few weeks if you filed your tax forms online and chose the direct deposit option. Paper returns can take a few months, especially if you need to wait for a paper check.
You can use the refund status checker on the New York State website to keep an eye on the progress. You'll just need to enter a security code along with your Social Security number, refund amount and tax form used. The state also lets you check the refund status by calling 518-457-5149. Both options are available around the clock.
What About New York Taxes if You're Self-employed?
Unless you have a partnership or corporation, you'll likely fill out the individual income tax return forms fitting your residency status. You'll carry over information about your business income and expenses from your Schedule C federal tax form. New York requires quarterly estimated tax payments for the self-employed.
What About New York Taxes if You're a Business?
If you run a business in New York, visit the "businesses" section of the state's tax website to determine which tax forms to use. You can expect to pay a different tax rate than individuals as well as make estimated payments. You'll be able to set up a Business Online Services account to perform transactions.
Rates and dates in this article are correct as of publication. But check for any changes with the New York Department of Taxation and Finance before you file.
- New York State: Apply for an Extension of Time to File an Income Tax Return
- New York State: Check Your Refund Status Online 24/7!
- New York State: Make a Personal Income Tax Return Payment Online
- New York State: Installment Payment Agreement (IPA)
- New York State: Form IT-201-V
- New York State: Commonly Used Income Tax Forms and Instructions
- New York State: Interest and Penalties
- New York State: Free File Your Income Tax Return
- New York State: Mailing Address (Personal Income Tax Returns)
- New York State: Filing Information for New York State Residents
- New York State: Filing Information for New York State Nonresidents
- New York State: Filing Information for New York State Part-year Residents
- New York State: Instructions for Form IT-201 Full-Year Resident Income Tax Return
- New York State: Businesses
Ashley Donohoe has written about business and technology topics since 2010. Having a Master of Business Administration degree, bookkeeping certification and experience running a small business and doing tax returns, she is knowledgeable about the tax issues individuals and businesses face. Other places featuring her business writing include Zacks, JobHero, LoveToKnow, Bizfluent, Chron and Study.com.