New York Form IT-203-F, Multi-Year Allocation Form, is used by certain New York nonresidents and part-year residents who received income connected to work performed in New York State over an earlier period. This form is not for regular wages from your current job. It is mainly for income that relates to past employment, such as termination pay, a covenant not to compete, stock options, restricted stock, or stock appreciation rights. The purpose of the form is to figure out how much of that income should be treated as New York source income and reported in the New York State amount column of Form IT-203. This matters because the income may be paid in the current tax year, but it may be based on work performed during several earlier years. Form IT-203-F helps divide that income fairly between New York and non-New York work periods. Schedule A is used for certain income tied to past New York employment. Schedule B is used for stock options, restricted stock, or stock appreciation rights when the allocation period is different from the one used for regular wage allocation.
Who Should Use New York Form IT-203-F?
Use New York Form IT-203-F if you are a New York State nonresident or part-year resident and you received income that must be allocated over more than one year because it relates to services performed both inside and outside New York State.
You may need this form if you received compensation from a termination agreement, covenant not to compete, stock options, restricted stock, or stock appreciation rights connected to work performed in New York.
Do not use this form to allocate normal wage and salary income from your current job. Regular wage allocation is handled on Form IT-203-B.
How To File New York Form IT-203-F
Complete the parts of Form IT-203-F that apply to your situation. Attach the completed form to your New York Form IT-203 when you file your nonresident or part-year resident income tax return. Keep a copy with your tax records.
If you have more than one separate item of income to allocate, complete a separate allocation section for each item. If the form does not give enough space for all items, prepare additional schedules and combine the required totals as instructed.
How To Complete New York Form IT-203-F
Top Information Section
Name As Shown On Form IT-203: Enter your name exactly as it appears on your New York Form IT-203. Use the same spelling, order, and format so the forms match.
Your Social Security Number: Enter your Social Security number. Make sure the number is correct because it connects this allocation form to your New York income tax return.
Tax Year: Enter the tax year for which you are filing this form. Use the same tax year shown on your Form IT-203.
Complete All Parts That Apply: Fill in only the schedules that apply to your type of income. Schedule A is for certain current-year income tied to past employment in New York. Schedule B is for stock options, restricted stock, or stock appreciation rights.
Submit This Form With Form IT-203: Attach Form IT-203-F to your Form IT-203 when filing. Do not file it by itself.
Schedule A, Current Year Allocation Of Income From Past New York Employment
Schedule A is used when you received income in the current year that relates to past employment in New York State. Examples include termination pay or payment for a covenant not to compete. Complete a separate Schedule A for each separate amount of income that must be allocated.
If you complete more than one Schedule A, add together all amounts from line 1d and line 2d from every Schedule A you prepare. Report the combined amount on Form IT-203, line 1, in the New York State amount column.
Use Schedule A only for multi-year allocation. Do not use it for normal wages from your current job.
Schedule A, Allocation 1
Allocation 1 Period This Allocation Covers: Enter the beginning and ending dates for the period connected to the income you are allocating. Use the month, day, and year format. This period usually includes the part of the year before employment ended and the three tax years before that termination. If the employment period was shorter, use the shorter period.
Allocation 1 Type Of Income You Are Allocating: Write the kind of income you received. For example, you may write termination pay, covenant not to compete payment, or another clear description of the income.
Allocation 1 Tax Year: List each tax year included in the allocation period. Start with the earliest year first.
Allocation 1 Column A, Total Compensation: For each tax year listed, enter the total compensation from that employment that was included in your federal adjusted gross income.
Allocation 1 Column B, New York Amounts: For each tax year listed, enter the part of that compensation that was treated as New York source income.
Line 1a: Add all amounts in column A and enter the total in the column A total box. Then add all amounts in column B and enter the total in the column B total box.
Line 1b: Divide the line 1a New York amount in column B by the line 1a total compensation amount in column A. Carry the result to four decimal places. This gives you the New York allocation decimal for Allocation 1.
Line 1c: Enter the current tax year income that must be allocated for this item. This is the payment you received this year that relates to past employment.
Line 1d: Multiply line 1c by the decimal from line 1b. Enter the result here. This is the New York portion of the income for Allocation 1. Include this amount on Form IT-203, line 1, in the New York State amount column.
Schedule A, Allocation 2
Use Allocation 2 only if you have another separate amount of income that must be allocated. If you have only one allocation item, leave Allocation 2 blank.
Allocation 2 Period This Allocation Covers: Enter the beginning and ending dates for the second allocation period. Use the month, day, and year format.
Allocation 2 Type Of Income You Are Allocating: Enter a clear description of the second income item you are allocating.
Allocation 2 Tax Year: List each tax year included in the second allocation period, beginning with the earliest year.
Allocation 2 Column A, Total Compensation: Enter the total compensation from that employment included in federal adjusted gross income for each listed year.
Allocation 2 Column B, New York Amounts: Enter the New York source portion of that compensation for each listed year.
Line 2a: Add all amounts in column A and enter the total. Then add all amounts in column B and enter the New York total.
Line 2b: Divide the line 2a column B amount by the line 2a column A amount. Carry the answer to four decimal places. This gives you the New York allocation decimal for Allocation 2.
Line 2c: Enter the current tax year income that must be allocated for this second income item.
Line 2d: Multiply line 2c by the decimal on line 2b. Enter the result here. This is the New York portion of the second income item. Include this amount on Form IT-203, line 1, in the New York State amount column.
Schedule B, Stock Option, Restricted Stock, Or Stock Appreciation Rights Allocation
Schedule B is used by New York nonresidents and part-year residents who received compensation from stock options, restricted stock, or stock appreciation rights and performed services in New York State. Use this schedule when the allocation period for these items is different from the allocation period used on Form IT-203-B.
Complete a separate Schedule B for each option, stock award, or stock appreciation right you were granted.
Schedule B, Top Information
Your Social Security Number: Enter your Social Security number at the top of Schedule B. This helps connect the second page with the rest of your return.
Description Of Stock: Give a short description of the stock, option, or right. For example, you can include the number of shares and the company name.
Grant Date: Enter the date the stock option, restricted stock, or stock appreciation right was granted. Use the month, day, and year format.
Vest Date: Enter the date the option, stock, or right vested. Use the month, day, and year format.
Exercise Date: Enter the date you exercised the option or stock appreciation right, if applicable. Use the month, day, and year format.
Allocation Period: Enter the beginning and ending dates of the allocation period for the stock item. The correct period depends on the type of stock compensation. It may cover more than one year and may include time when you were a New York resident.
Stock Type Box: Mark one box only. Choose statutory, non-statutory, restricted stock, or appreciation right. Select the box that matches the compensation item you are reporting.
Schedule B, Line-By-Line Instructions
Line 3: Enter the correct column A amount for the stock item. This amount depends on the type of grant. For many items, it may be based on fair market value, selling price, or another value used to measure the compensation.
Line 4: Enter the correct column B amount for the stock item. This may be the option price, price paid, fair market value at grant date, or another offset amount based on the type of stock compensation.
Line 5: Subtract line 4 from line 3. Enter the result. This is the compensation amount that must be allocated.
Line 6: Enter the total number of calendar days in the allocation period.
Line 7: Enter the number of Saturdays and Sundays during the allocation period that you did not work.
Line 8: Enter the number of holidays during the allocation period that you did not work.
Line 9: Enter the number of sick leave days during the allocation period.
Line 10: Enter the number of vacation days during the allocation period.
Line 11: Enter any other nonworking days during the allocation period. These are days you did not work for reasons not already listed on lines 7 through 10.
Line 12: Add lines 7, 8, 9, 10, and 11. Enter the total. This is your total number of nonworking days.
Line 13: Subtract line 12 from line 6. Enter the result. This is the total number of days you worked during the allocation period for this job.
Line 14: Enter the number of days included on line 13 that you worked outside New York State. Only include days worked outside New York when the work was required by your employer’s business needs, not just because it was more convenient for you.
Line 15: Enter the number of days from line 14 that you worked at home. Normal workdays spent at home are generally treated as New York workdays for this purpose. Days worked at home that were not normal workdays may be treated as nonworking days.
Line 16: Subtract line 15 from line 14. Enter the result. This gives the number of outside New York workdays after removing home workdays counted on line 15.
Line 17: Subtract line 16 from line 13. Enter the result. This is the number of days worked in New York State during the allocation period.
Line 18: Enter the same number shown on line 13. This repeats your total days worked during the allocation period.
Line 19: Divide line 17 by line 18. Round the result to four decimal places. This gives the New York workday fraction.
Line 20: Multiply line 19 by line 5. Enter the result. This is the New York State amount of the stock option, restricted stock, or stock appreciation rights compensation.
Final Schedule B Reporting Instruction: Include the amount from line 20 on the correct line of Form IT-203 in the New York State amount column.
Common Mistakes To Avoid
Do not use Form IT-203-F for regular wages from your current job. Use the regular wage allocation form for that situation.
Do not combine different stock grants into one Schedule B. Each option, stock award, or right needs its own Schedule B.
Do not forget to use four decimal places on the allocation percentage lines. This matters for lines 1b, 2b, and 19.
Do not count all days outside New York automatically. For Schedule B, outside New York workdays must be based on employer necessity, not personal convenience.
Do not skip the final transfer to Form IT-203. The completed allocation amount must be reported in the New York State amount column of the correct line.