IT-203-A: Nonresident Business Allocation Schedule (Revision 2023-12)

Who files this form

Form IT-203-A is for allocating income from a business carried on both inside and outside New York State, or inside and outside the Metropolitan Commuter Transportation District (MCTD).

The form covers allocations to New York State, MCTD Zone 1, or MCTD Zone 2. Submit it with Form IT-201 or IT-203, as applicable.

What you'll need

Have the following information ready:

• Your name as shown on your return, Social Security number, and tax year ending date.
• The street address, city and state, and description of every place where you carry on business, both inside and outside the relevant area.
• Your business books showing income or net earnings from self-employment.
• If using Schedule B, amounts for real property and tangible personal property owned or rented, payroll, and gross income. You need both overall totals and amounts for New York State or the applicable MCTD zone.
• The business income or loss amounts reported on Form IT-203 that need to be allocated, or the net earnings from self-employment being allocated.

How to file

Submit Form IT-203-A with your Form IT-201 or IT-203. Submit additional sheets if necessary.

• Indicate whether the allocation is for New York State, MCTD Zone 1, or MCTD Zone 2.
• In Schedule A, list all places where you carry on business, both inside and outside the relevant area.
• Use Schedule B's formula allocation if your books do not show the portion from New York State or the applicable MCTD zone.
• For New York State business income, use line 9 to multiply each item requiring allocation by the percentage on line 8. Transfer the results to the proper lines in Form IT-203's New York State amount column.
• For MCTD net earnings from self-employment, use line 10 and include the result on Form IT-201, line 54a or 54b, or Form IT-203, line 52b or 52c, as applicable.

The supplied form does not give a mailing address or e-file directions.

Common mistakes

Keep these printed reminders in mind:

• Submit this schedule with Form IT-201 or IT-203, and include additional sheets if necessary.
• List all business locations in Schedule A, not just those inside New York State or the applicable MCTD zone.
• On line 8, divide the line 7 total by three, or by the actual number of percentages if fewer than three.
• If you need more lines for the business income allocation on line 9, submit an additional schedule.

Questions people ask

Can this form be submitted with Form IT-201?

Yes. The form says to submit it with Form IT-201 or IT-203.

When do I use Schedule B?

Use Schedule B's formula allocation if your books do not show the portion from New York State or the applicable MCTD zone.

How is the business allocation percentage calculated?

Add the property, payroll, and gross income percentages from lines 4, 5, and 6 in Column C. Enter the total on line 7. Then divide by three, or by the actual number of percentages if fewer than three, and enter the result on line 8.

Where do allocated MCTD net earnings go?

Line 10 directs you to include the allocated amount on Form IT-201, line 54a or 54b, or Form IT-203, line 52b or 52c, as applicable.

Official sources

• https://www.tax.ny.gov/pdf/2023/inc/it203a_1223_fill_in.pdf