IT-230: Separate Tax on Lump-Sum Distributions (2025)
New York · NY DTF · Used for tax years 2025
Form IT-230 figures the separate New York State and, when applicable, New York City tax on lump-sum distributions using information from federal Form 4972. It includes calculations for the capital gain part and the 10-year tax option and is submitted with Form IT-201, IT-203, or
Who files this form
For tax year 2025, submit Form IT-230 if you used federal Form 4972 to figure your federal tax on lump-sum distributions. Submit it with Form IT-201, IT-203, or IT-205.
- New York State residents: Complete the form using information from federal Form 4972.
- Part-year residents: Complete Part 2 using federal Form 4972. For Part 3, use only information for your period of New York residence.
- Nonresidents: Complete only Part 2, line 1, and the Income percentage schedule on page 3 of Form IT-230-I.
If you did not use federal Form 4972, answer “No” in Part 1 and do not complete the rest of IT-230. Your distribution does not qualify for the separate tax.
What you'll need
- Federal Form 4972: Use its figures to complete IT-230 and submit a copy with your return.
- Form IT-201, IT-203, or IT-205: Submit IT-230 with the applicable return.
- Form IT-230-I: IT-230 refers to its worksheets, Income percentage schedule, tax rate schedules, and guidance for certain lines.
- Other forms, as applicable: The form directs certain results to Form IT-201-ATT, IT-203-ATT, IT-205-A, or IT-360.1.
How to file
Enter your name as shown on your return and your identification number. Answer the federal Form 4972 question in Part 1, then complete the applicable parts.
Submit Form IT-230 and a copy of federal Form 4972 with Form IT-201, IT-203, or IT-205. Follow the line 2 and line 24 directions to carry the results to the appropriate worksheets or return lines.
The supplied form does not provide a mailing address or e-file directions.
Common mistakes
- Continuing after answering “No” in Part 1: The form says not to complete the remaining sections.
- Using a full year's figures in Part 3 as a part-year resident: Use only the information for your period of New York residence.
- Missing the New York City column: New York City and part-year New York City residents must use both columns where directed.
- Ignoring the line 7 shortcut: If line 7 is $70,000 or more, skip lines 8 through 11 and enter the line 7 amount on line 12.
- Completing annuity calculations when line 6 is blank: Skip lines 15 through 17. After calculating line 20, skip lines 21 through 23 and enter the line 20 amount on line 24.
Questions people ask
When do I use Part 2?
Use Part 2 if you completed Part II of federal Form 4972. New York State nonresidents are directed to complete only line 1 of Part 2 and the Income percentage schedule.
When do I use Part 3?
Use Part 3 if you were a resident or part-year resident and completed Part III of federal Form 4972.
What rates apply to the capital gain amount in Part 2?
Line 2 applies 5.4% to the line 1 amount for New York State. New York City and part-year New York City residents also apply 1.72% for the New York City column.
Where are the tax rates for the 10-year tax option?
Lines 19 and 22 direct you to the New York State tax rate schedule on page 4 of Form IT-230-I. New York City and part-year New York City residents must also use the New York City schedule on that page.