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    talhasaleem1990's Avatar
    talhasaleem1990 Posts: 41, Reputation: 1
    Junior Member
    		  
    #1

    Mar 29, 2013, 10:55 PM
    Treaty Exempt Income on State Tax form?
    According to tax treaty signed by the US, I have a $5000 exemption.

    Now I am filing as a non-resident in NY state but I have seen conflicting reports on the internet if I should quote all income on my State Tax form (and later take it out as federal adjustment) or deduct it altogether from the very first line that asks for wages.

    How should I approach this?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Mar 30, 2013, 12:06 AM
    New York is one of the few states that in fact HONOR tax treaty exemptions.

    List all the income, then take it out as an adjustment.

    David Kempe
    talhasaleem1990's Avatar
    talhasaleem1990 Posts: 41, Reputation: 1
    Junior Member
    		  
    #3

    Mar 30, 2013, 12:13 AM
    In the instruction manual, I don't see any particular treatment of tax treaty exemption and I was wondering if this exemption is justified under 'federal adjustments'? Link: http://www.tax.ny.gov/pdf/current_forms/it/it203i.pdf
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Mar 30, 2013, 12:21 AM
    Needed did I, which is why, some years back, I called the New York state tax department and ASKED!
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