Fillable Form It-257 - Claim Of Right Credit

IT-257 (2014) (back)

Instructions

General information

Line instructions

See the instructions for your tax return for the Privacy notification

If you have claim of right income for federal tax purposes and

are claiming the federal claim of right credit on your federal

or if you need help contacting the Tax Department.

return, you may also be entitled to a claim of right credit for New

Note: To compute your credit, you will need a copy of your

York State, New York City, or Yonkers. The claim of right credit is

original return for the prior year. It may also be helpful to have

available to individuals, estates, and trusts. Claim of right income

the instructions and blank tax forms for the prior year.

is income that was properly reported on a prior year’s tax return,

but was later determined to have been paid to you in error and

Line 3 – You must complete line 3 to explain the type of income

therefore had to be repaid. If the claim of right credit exceeds

involved in the claim of right credit and the reason for the

the amount of tax imposed for the tax year, the excess will be

repayment.

refunded to you.

Line 4 – Enter the New York State tax from the return for the

If you have federal claim of right income but elect to take the

year that the income was included in federal adjusted gross

income. Enter the amount as originally filed, as adjusted by New

federal deduction instead of the credit, you cannot claim a credit

for New York State, New York City, or Yonkers. Do not complete

York State, or as you later amended it.

this form. However, depending upon the type of income repaid

Line 5 – Enter the tax that would have been reported had the

and whether you itemize your deductions for New York State

income in question not been included in federal adjusted gross

purposes, you may get the deduction.

income.

How to claim the credit

Line 7 – Enter the New York City resident tax from the return for

File Form IT-257 if you are an individual, estate, or trust that

the year that the income was included in federal adjusted gross

qualifies for the claim of right credit. Complete all sections of this

income. Enter the amount as originally filed, as adjusted by

form that apply to you. Be sure to submit Form IT-257 with your

New York State, or as you later amended it.

return.

Line 8 – Enter the New York City resident tax that would have

been reported had the income in question not been included in

Amount of the credit

federal adjusted gross income.

The amount of credit for New York State residents and

Line 10 – Enter the amount of New York City nonresident

nonresidents and New York City or Yonkers residents is the

earnings tax for the year that the income was reported on

difference between the amount of New York State, New York

Form NYC-203, City of New York Nonresident Earnings Tax

City, or Yonkers tax originally reported on your return for the prior

Return, or Form NYC-206, City of New York Nonresident

year and what would have been reported for the prior year if the

Fiduciary Earnings Tax Return. Enter the amount as originally

income had not been included on your state or city return.

filed, as adjusted by New York State, or as you later amended it.

If you were subject to New York City or Yonkers nonresident

Line 11 – Enter the New York City nonresident earnings tax that

earnings tax in the prior year, you may also be entitled to a claim

would have been reported had the income in question not been

of right credit for New York City or Yonkers nonresident earnings

included on Form NYC-203 or Form NYC-206.

tax purposes if the claim of right income affects the computation

of wages or net earnings from self-employment. The credit is

Line 13 – Enter the Yonkers resident income tax surcharge from

the difference between the amount of New York City or Yonkers

the return for the year that the income was included in federal

nonresident earnings tax originally reported in the prior year and

adjusted gross income. Enter the amount as originally filed, as

what would have been reported in the prior year if the income

adjusted by New York State, or as you later amended it.

had not been included on the nonresident earnings tax return.

Line 14 – Enter the Yonkers resident income tax surcharge that

Example: In the current tax year, you repaid under a claim of

would have been reported had the income in question not been

right $5,000 of income that was included on a prior year New

included in federal adjusted gross income.

York State return. The New York State tax originally reported

on that prior year’s return was $809. Your prior year New York

Line 16 – Enter the amount of Yonkers nonresident earnings

State tax computed without including the $5,000 on that return

tax for the year that the income was reported on Form Y-203,

is $467. Your current year New York State claim of right credit is

Yonkers Nonresident Earnings Tax Return, or Form Y-206,

$342 ($809 - $467).

Yonkers Nonresident Fiduciary Earnings Tax Return. Enter the

amount as originally filed, as adjusted by New York State, or as

you later amended it.

Line 17 – Enter the Yonkers nonresident earnings tax that

would have been reported had the income in question not been

included on Form Y-203 or Form Y-206.

257002140094

Form It-257 - Claim Of Right Credit - 2014 Page 2

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