What is Form NYC 1127?
Workers of the City of New York but who live outside New York City and were hired on or after January 4, 1973, should file Form NYC 1127 and pay the city an amount equal to the personal income tax they would owe if they lived in New York City.
The payment required by Section 1127 of the New York City Charter is not a payment of any City tax, but a payment made to the City as a condition of employment.
How to fill out Form NYC 1127?
Provide the following:
- Names of employee and spouse
- 2-character special condition code
- Home address
- City and State
- Email address
- NYC Department or Agency where employed
- Daytime telephone number
- Employee’s social security number
- Spouse’s social security number
1. Filing Status
- Check the box that is applicable.
- Enter the payment amount.
2. 1127 Liability Calculation
- For lines 1 to 6 in the table enter the corresponding amount.
- NEW YORK STATE TAXABLE INCOME
- If NYS Form IT-201 is filed, enter the amount on line 37.
- If NYS Form IT-203, enter the amount on line 36.
- LIABILITY AMOUNT
- Employees who are married and include spouse’s income in Form NYC-1127, use Liability Table A on page 2 to compute the liability amount.
- Married employees who choose not to include their spouse’s income on Form NYC-1127, use Liability Table C to compute the liability amount.
- NEW YORK CITY SCHOOL TAX CREDITS
- Add lines a1 through g on page 2, Schedule B, to report credits and payments that would have reduced New York City resident income tax liability if the employee had been a City resident.
- No amount reported on line 3 is refundable.
- Enter on line 4 the amount withheld by the City from wages during 2019.
- BALANCE DUE
- After completing this return, enter the amount of remittance on line A, page 1.
- Remittances must be made payable to the order of NYC DEPARTMENT OF FINANCE
- If line 2 is less than the sum of lines 3 and 4 the employee may be entitled to a refund. Note: the refund may not exceed the amount on line 4.
- To determine the employee’s refund amount, compute the difference between the sum of lines 3 and 4, and line 2 (subtract line 2 from the sum of lines 3 and 4).
Note: Refunds cannot be processed unless a complete copy of the New York State return, including all schedules, and wage and tax statement (Form 1127.2) are attached to the form.
- The information should come from the NYS Income Tax Return.
- Sign and date to certify the form.
- The employee must sign and date the return at the bottom of page 1. If the employee filed jointly on Form NYC-1127, the form must be signed by both spouses. The employee’s return and/or refund cannot be processed if it is not signed.
- If the employee wants to allow the Department of Finance to discuss your return with the paid preparer who signed it, the employee must check the "yes" box in the signature area of the return.
- The preparer should also sign and date the form.
- The preparer’s personal information should also be entered.
- If the employee contributed to a New York State Charitable Gifts Trust Fund, filed a New York State return claiming married filing jointly status and claiming an itemized deduction for that contribution, they must recalculate NYS AGI by adding back the amount of the contribution to the Charitable Gifts Trust Fund. Enter the recalculated NYS AGI on line 1.
- Other instructions
- Enter the corresponding payment for each line.
- For line 5, if the amount withheld pursuant to Section 1127 was included in the itemized deductions when calculating the New York State Personal Income tax, the amount of itemized deductions for purposes of this line by that amount should be reduced.
- Report items for employee and spouse if filing a joint Form NYC 1127.
- Married couples who choose not to include their spouse’s income for Form 1137 should report items for employees only.
Where to file Form NYC 1127?
In order for the form to be processed, the employee must attach the following to Form NYC-1127:
- A complete copy of New York State Income Tax Return, including all schedules
- Wage and withholding statement (Form 1127.2)
- Agency verification, if claiming line of duty injury deduction
The forms can be paid online through Business Tax e-Services or send the documents and payment by mail.
It can be paid through:
- Electronic Funds Transfer (EFT) withdrawn directly from the bank
- Credit card (American Express, Master Card, VISA, and Discover)
- Debit card (VISA and Master Card debit cards that don’t require the entry of a PIN number to complete a transaction)
There is a 2% convenience fee for paying by credit or debit card. There is no convenience fee for paying by EFT or e-check.
To pay online, the employee will need the notice number from the bill (first 13 digits) plus the billing zip code.
If there is a debit block on the bank account and the employee wishes to pay online or by using software, the number needed to release the block is 6136400434.
The employee can file the tax forms by mail. If there's a balance due, they can also send a payment by mail.
For all returns, except returns claiming a refund, mail the tax form with attachments to:
NYC Department of Finance
P.O. Box 5564
Binghamton, NY 13902-5564
Don't send payments or requests for extensions to this address.
After mailing the form, if the employee owes a payment, mail the check and the payment voucher to:
NYC Department of Finance
P.O. Box 3933
New York, NY 10008-3933
If the employee is claiming a refund, mail the form to:
NYC Department of Finance
P.O. Box 5563
Binghamton, NY 13902-5563