When preparing New York State tax returns (Form IT-203) in TaxWise, you might encounter the following error:
"On page 1 of the New York IT-203, the school district and county of residence must be entered for nonresidents and part-year resident returns, and the school district code must be entered for part-year resident returns only. (NY 76)"
Understanding the Error
New York State requires specific residency and school district information on Form IT-203 to properly process tax returns for nonresidents and part-year residents. The error "NY 76" highlights the absence of this crucial data, preventing the return from being successfully filed. The exact requirements differ based on the taxpayer's residency status:
Nonresidents: Must enter the school district and county associated with their New York address.
Part-Year Residents: Must enter the school district and county associated with their New York address, plus the school district code.
Solution: Entering Residency and School District Information
Follow these steps to resolve the error:
Open Form IT-203: Access the New York IT-203 form within TaxWise.
Locate Residency Information: Navigate to page 1 of the IT-203 form. Look for the section requesting residency information, including county and school district.
Determine Residency Status: Confirm the taxpayer's residency status (nonresident, part-year resident, or full-year resident). This will dictate which information is required.
Enter County and School District:
All Nonresidents and Part-Year Residents: Enter the county and school district based on the New York address listed on the return.
Part-Year Residents Only: In addition to the county and school district name, you must also enter the correct school district code. TaxWise should provide a lookup feature to help you find the appropriate code based on the school district name.
Verify New York Address: Double-check that the New York address on the return is accurate. The county and school district information must correspond to this address.
Review Residency Dates (Part-Year Residents): If the taxpayer is a part-year resident, carefully review the dates of residency in New York. This ensures the correct school district and county information is used for the period of residency.
Validate and Re-transmit: After entering the required information, run the TaxWise error check again to ensure the "NY 76" error is resolved. Then, re-transmit the return.
Why This Works
Providing the required residency and school district information allows the New York State Department of Taxation and Finance to correctly process the tax return and allocate tax revenues to the appropriate local jurisdictions.
Additional Tips for Avoiding This Error
Accurate Client Information: Collect accurate address and residency information from your clients at the beginning of the tax preparation process.
Utilize TaxWise Resources: Use TaxWise's built-in lookup tools and resources to find the correct school district codes.
Consult Official Resources: Refer to the New York State Department of Taxation and Finance website for official guidance on residency requirements and school district codes.
Pay Attention to Detail: Carefully review all entered information before transmitting the return to minimize errors.
Confirm Residency Selection: If the taxpayer is a nonresident, make sure the selection of Non-Resident is selected.