Form It-2104 - Employee'S Withholding Allowance Certificate 2011 (Page 2 of 4) in pdf

Page 2 of 4 IT-2104 (6/11)

Exemption from withholding

job employer. If you arrive at negative allowances (less than zero), see

Withholding allowances above.

You cannot use Form IT-2104 to claim exemption from withholding.

To claim exemption from income tax withholding, you must file

If your combined wages are between $100,000 and $1,100,000, use one

Form IT-2104-E, Certificate of Exemption from Withholding, with your

of the charts in Part 4 to compute the number of allowances to transfer

employer. You must file a new certificate each year that you qualify for

to line 19. Substitute the words Highest paying job for Higher earner’s

exemption. This exemption from withholding is allowable only if you had

wages within the charts.

no New York income tax liability in the prior year, you expect none in the

Dependents — If you are a dependent of another taxpayer and expect

current year, and you are over 65 years of age, under 18, or a full-time

your income to exceed $3,000, you should reduce your withholding

student under 25. You may also claim exemption from withholding if

allowances by one for each $1,000 of income over $2,500. This will

you are a military spouse and meet the conditions set forth under the

ensure that your employer withholds enough tax.

Servicemembers Civil Relief Act as amended by the Military Spouses

Residency Relief Act. If you are a dependent who is under 18 or a

Following the above instructions will help to ensure that you will not owe

full-time student, you may owe tax if your income is more than $3,000.

additional tax when you file your return.

Withholding allowances

Heads of households with only one job — If you will use the

You may not claim a withholding allowance for yourself or, if married,

head-of-household filing status on your state income tax return, mark

your spouse. Claim the number of withholding allowances you compute

the Single or Head of household box on the front of the certificate. If you

in Part 1 and Part 3 on page 3 of this form. If you want more tax

have only one job, you may also wish to claim two additional withholding

withheld, you may claim fewer allowances. If you claim more than

allowances on line 14.

14 allowances, your employer must send a copy of your Form IT-2104

Married couples with only one spouse working — If your spouse does

to the New York State Tax Department. You may then be asked to verify

not work and has no income subject to state income tax, mark the

your allowances. If you arrive at negative allowances (less than zero) on

Married box on the front of the certificate. You may also wish to claim

lines 1, 2, 20, or 31, and your employer cannot accommodate negative

two additional allowances on line 15.

allowances, enter 0 and see Additional dollar amount(s) below.

Additional dollar amount(s)

Income from sources other than wages — If you have more than

$1,000 of income from sources other than wages (such as interest,

You may ask your employer to withhold an additional dollar amount

dividends, or alimony received), reduce the number of allowances

each pay period by completing lines 3, 4, and 5 on Form IT-2104. In

claimed on line 1 and line 2 (if applicable) of the IT-2104 certificate

most instances, if you compute a negative number of allowances using

by one for each $1,000 of nonwage income. If you arrive at negative

the worksheet on page 3 and your employer cannot accommodate a

allowances (less than zero), see Withholding allowances above. You

negative number, for each negative allowance claimed you should have an

may also consider filing estimated tax, especially if you have significant

additional $1.90 of tax withheld per week for New York State withholding

amounts of nonwage income. Estimated tax requires that payments be

on line 3, and an additional $0.80 of tax withheld per week for New York

made by the employee directly to the Tax Department on a quarterly

City withholding on line 4. Yonkers residents should use 17.5% (.175) of

basis. For more information, see the instructions for Form IT-2105,

the New York State amount for additional withholding for Yonkers on line 5.

Estimated Income Tax Payment Voucher for Individuals, or see Need

Note: If you are requesting that your employer withhold an additional

help? on page 3.

dollar amount on lines 3, 4, or 5 of this allowance certificate, the

Other credits (Worksheet line 13) — If you will be eligible to claim

additional dollar amount, as determined by these instructions or by using

any credits other than the credits listed in the worksheet, such as an

the chart in Part 4, is accurate for a weekly payroll. Therefore, if you are

investment tax credit, you may claim additional allowances as follows:

paid other than weekly, you will need to adjust the dollar amount(s) that

you compute. For example, if you are paid biweekly, you must double

• If you expect your New York adjusted gross income to be less than

the dollar amount(s) computed using the worksheet on page 3.

$300,000, divide the amount of the expected credit by 70 and enter

the result (rounded to the nearest whole number) on line 13.

Avoid underwithholding

• If you expect your New York adjusted gross income to be between

Form IT-2104, together with your employer’s withholding tables, is

$300,000 and $500,000, divide the amount of the expected credit by 80

designed to ensure that the correct amount of tax is withheld from your pay.

and enter the result (rounded to the nearest whole number) on line 13.

If you fail to have enough tax withheld during the entire year, you may owe

• If you expect your New York adjusted gross income to be over

a large tax liability when you file your return. The Tax Department must

$500,000, divide the amount of the expected credit by 90 and enter

assess interest and may impose penalties in certain situations in addition

the result (rounded to the nearest whole number) on line 13.

to the tax liability. Even if you do not file a return, we may determine

that you owe personal income tax, and we may assess interest and

Example: You expect your New York adjusted gross income to be

penalties on the amount of tax that you should have paid during the year.

less than $300,000. In addition, you expect to receive a flow-through

of an investment tax credit from the S corporation of which you are a

Employers

shareholder. The investment tax credit will be $160. Divide the expected

Box A — If you are required to submit a copy of an employee’s

credit by 70. 160/70 = 2.2857. The additional withholding allowance(s)

Form IT-2104 to the Tax Department because the employee claimed

would be 2. Enter 2 on line 13.

more than 14 allowances, mark an X in box A and send a copy

Married couples with both spouses working — If you and your spouse

of Form IT-2104 to: NYS Tax Department, Income Tax Audit

both work, you should each file a separate IT-2104 certificate with your

Administrator, Withholding Certificate Coordinator, W A Harriman

respective employers. You should each mark an X in the box Married,

Campus, Albany NY 12227.

but withhold at higher single rate on the certificate front, and divide the

Due dates for sending certificates received from employees claiming

total number of allowances that you compute on line 20 and line 31 (if

more than 14 allowances are:

applicable) between you and your working spouse. Your withholding will

better match your total tax if the higher wage-earning spouse claims

Quarter

Due date

Quarter

Due date

all of the couple’s allowances and the lower wage-earning spouse

January – March

April 30

July – September

October 31

claims zero allowances. Do not claim more total allowances than you

April – June

July 31

October – December

January 31

are entitled to. If you and your spouse’s combined wages are between

Box B — If you are submitting a copy of this form to comply with New

$100,000 and $1,100,000, use one of the charts in Part 4 to compute the

York State’s New Hire Reporting Program, mark an X in box B. Enter

number of allowances to transfer to line 19.

the first day any services are performed for which the employee will be

Taxpayers with more than one job — If you have more than one

paid wages, commissions, tips and any other type of compensation. For

job, file a separate IT-2104 certificate with each of your employers. Be

services based solely on commissions, this is the first day an employee

sure to claim only the total number of allowances that you are entitled

working for commissions is eligible to earn commissions. Also, mark an X

to. Your withholding will better match your total tax if you claim all of

in the Yes or No box indicating if dependent health insurance benefits are

your allowances at your higher-paying job and zero allowances at the

available to this employee. If Yes, enter the date the employee qualifies

lower-paying job. In addition, to make sure that you have enough tax

for coverage. Mail the completed form, within 20 days of hiring, to: NYS

withheld, if you are a single taxpayer or head of household with two

Tax Department, New Hire Notification, PO Box 15119, Albany NY

or more jobs, reduce the number of allowances by six on line 1 and

12212-5119. To report newly-hired or rehired employees online instead of

line 2 (if applicable) on the certificate you file with your higher-paying

submitting this form, go to

Form It-2104 - Employee'S Withholding Allowance Certificate 2011 Page 2

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