If you were a New York State resident or part-year resident individual, resident estate, or resident or part-year resident trust and you used federal Form 4972, Tax on Lump-Sum Distributions, to compute your federal tax on lump-sum distributions, you must use New York State Form IT-230 to compute your New York State separate tax on lumpsum distributions. You must make the same elections on Form IT-230 as you made on federal Form 4972. To make those elections, fill in the same parts of Form IT-230 that you filled in on federal Form 4972. Follow the instructions for Part 2 and Part 3.
If you were a New York State nonresident or part year resident individual, nonresident estate or trust, or part year resident trust and you received (or accrued) a lump sum distribution from a qualified retirement plan in your period of nonresidence, the income is not taxable to New York State and therefore not subject to the New York State separate tax on lump-sum distributions. However, if you filed federal Form 4972 and used Part II because you chose the 20% capital gain election, you must complete Part 2, line 1 of Form IT-230 and the Income percentage schedule on page 3 of these instructions to compute the income percentage to enter on page 2, Worksheet C, line 6, and on Form IT-203, Nonresident and Part-Year Resident Income Tax Return, or IT-205-A, Fiduciary Allocation. Follow the line instructions for Part 2 on page 2.
If you were a New York City resident or a part-year New York City resident, compute your New York City separate tax on Form IT-230. New York City nonresidents are not subject to the city separate tax on lump-sum distributions.
If you were a Yonkers resident or part year resident, compute your Yonkers resident income tax surcharge on Form IT201, Resident Income Tax Return ( long form), or IT203, based on your New York State separate tax on lump-sum distributions. You do not have to compute a separate tax on Form IT-230.
If you and your spouse were New York State residents or part-year residents and are filing a joint return, and you each received a lump-sum distribution, complete and file a separate Form IT-230 for each spouse and combine the tax shown on each form. Transfer the combined tax from Forms IT-230, Part 2 and/or Part 3, to the applicable worksheet and line as indicated on Form IT-230.
If you are filing for a New York State resident or part year resident trust that shared the distribution only with other trusts, compute the tax on the entire distribution first. The trusts then share the tax in the same proportion that they shared the distribution.