Fillable Form It-257 - Claim Of Right Credit

Instructions

IT-257 (2011) (back)

General information

Line 3 — You must complete line 3 to explain the type of

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

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

the repayment.

are claiming the federal claim of right credit on your federal

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

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

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

year that the income was included in federal adjusted gross

credit is available to individuals, estates, and trusts. Claim of

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

right income is income that was properly reported on a prior

York State, or as you later amended it.

year’s tax return, but was later determined to have been paid to

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

you in error and therefore had to be repaid. If the claim of right

income in question not been included in federal adjusted gross

credit exceeds the amount of tax imposed for the tax year, the

income.

excess will be refunded to you.

Line 7 — Enter the New York City resident tax from the return

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

for the year that the income was included in federal adjusted

federal deduction instead of the credit, you cannot claim a

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

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

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

complete this form. However, depending upon the type of

income repaid and whether you itemize your deductions for

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

New York State purposes, you may get the deduction.

been reported had the income in question not been included in

federal adjusted gross income.

How to claim the credit

Line 10 — Enter the amount of New York City nonresident

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

earnings tax for the year that the income was reported on

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

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

this form that apply to you. Be sure to attach Form IT-257 to

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

your return.

Fiduciary Earnings Tax Return. Enter the amount as originally

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

Amount of the credit

Line 11 — Enter the New York City nonresident earnings tax

The amount of credit for New York State residents and

that would have been reported had the income in question not

nonresidents and New York City or Yonkers residents is the

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

difference between the amount of New York State, New York

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

Line 13 — Enter the Yonkers resident income tax surcharge

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

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

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

federal adjusted gross income. Enter the amount as originally

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

If you were subject to New York City or Yonkers nonresident

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

Line 14 — Enter the Yonkers resident income tax surcharge that

claim of right credit for New York City or Yonkers nonresident

would have been reported had the income in question not been

earnings tax purposes if the claim of right income affects the

included in federal adjusted gross income.

computation of wages or net earnings from self-employment.

Line 16 — Enter the amount of Yonkers nonresident earnings

The credit is the difference between the amount of New York

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

City or Yonkers nonresident earnings tax originally reported in

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

the prior year and what would have been reported in the prior

Yonkers Nonresident Fiduciary Earnings Tax Return. Enter the

year if the income had not been included on the nonresident

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

earnings tax return.

you later amended it.

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

Line 17 — Enter the Yonkers nonresident earnings tax that

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

would have been reported had the income in question not been

York State return. The New York State tax originally reported

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

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

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

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

$342 ($809 - $467).

Line instructions

See the instructions for your tax return for the Privacy

notification or if you need help contacting the Tax Department.

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

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

the instructions and blank tax forms for the prior year.

2572110094

Please file this original scannable attachment with the Tax Department.

Form It-257 - Claim Of Right Credit - 2011 Page 2

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