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Error in NY state tax is asking me if tax payer was employed by the city of NY? options are taxpayer or spouse non apply . how can i correct this?

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Level 15

That's a NYC tax question.  If your clients are employees of NYC government agencies, they will be subject to NYC tax even if they don't reside in NYC.

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Still an AllStar
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Level 4

Aren't they subject to NYC 1127 if do do not reside in NYC?

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Level 15

Not unless they are employees of the city government as mentioned in my initial response.

NYC NR tax was ruled to be unconstitutional a long time ago.  It was a very educational ruling that touched on the state's rights to levy taxes, how that cascades down to localities as well as the limitations.

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Still an AllStar
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