Y-206: Yonkers Nonresident Fiduciary Earnings Tax Return (2024)
New York · NY DTF · Used for tax years 2024
Form Y-206 is the Yonkers Nonresident Fiduciary Earnings Tax Return. It reports a nonresident estate or trust’s wages and net earnings from self-employment in Yonkers and calculates the nonresident earnings tax. The return is submitted with Form IT-205.
Who files this form
The fiduciary of a nonresident estate or trust must file Form Y-206 if the estate or trust has income from wages or net earnings from self-employment in Yonkers.
Submit Form Y-206 with Form IT-205, Fiduciary Income Tax Return. The form directs you to the Form IT-205 instructions for more information about who must file.
What you'll need
Have the following information and documents ready, as applicable:
- The estate’s or trust’s name as shown on federal Form SS-4, its employer identification number (EIN), and the fiduciary’s name and title.
- Form IT-205 and its instructions.
- A detailed statement calculating net earnings from self-employment for line 1, including gross business income and the deductions specified in the instructions. The calculation refers to federal Form 1040, Schedule SE, Part 1, line 4c.
- Schedules supporting amounts paid or permanently set aside for charitable purposes on line 2 and amounts distributed or distributable to Yonkers residents on line 4.
- The employee’s wage and tax statement for line 6, including any eligible START-UP NY wages.
- A detailed allocation schedule if income was earned partly in and partly outside Yonkers.
- A separate calculation schedule if using a lower tax amount computed as though the estate or trust were a Yonkers resident.
- Form IT-257 if claiming an eligible claim of right credit.
How to file
Submit Form Y-206 with Form IT-205. Enter the tax from Form Y-206, line 10, on Form IT-205, line 27.
Include the required statements and schedules. If you are claiming a claim of right credit, complete Form IT-257 and submit it with Form IT-205.
The supplied text does not give a mailing address or e-file directions.
Common mistakes
- Leaving out START-UP NY wages from line 6. Include wages paid by an approved START-UP NY business on line 6, then enter eligible START-UP NY wages on line 6a.
- Using workdays to allocate income based entirely on business volume. For income such as sales commissions that depends entirely on business volume, use the business-volume allocation instead.
- Counting nonwork days in a workday allocation. Exclude nonwork days such as holidays, sick leave, and vacation. Include your name and taxpayer identification number on the workday allocation schedule.
- Missing the loss notation. If line 1 is a loss, write “loss” on that line.
- Claiming an exclusion when the total exceeds the limit. There is no exclusion if total wages and net earnings, the sum of lines 1 and 6b, exceed $30,000 for the year.
- Filing Y-206 separately. Submit it with Form IT-205 and carry the line 10 tax to Form IT-205, line 27.
Questions people ask
How is the earnings tax calculated?
Multiply the taxable amount on line 9 by 0.5% (.005). Enter the tax on line 10 and on Form IT-205, line 27, subject to the resident-tax limit described below.
Can the tax be limited to the amount a Yonkers resident estate or trust would pay?
Yes. The tax cannot exceed the Yonkers income tax surcharge the estate or trust would owe if it were a Yonkers resident. If that amount is lower, submit a separate schedule showing the calculation and enter the lower amount on line 10.
Is the allowable exclusion reduced for a short tax year or a change in residence?
Yes. Prorate the exclusion if a trust changed residence to or from Yonkers during the tax year, or if an estate or trust had a tax period of less than one year. Count a period of more than one-half month as a full month; do not count one-half month or less. Use the exclusion table to find the amount.
Can an estate or trust claim a claim of right credit?
If it was eligible for a claim of right credit on its federal return, it may also qualify for a refundable credit against its Yonkers nonresident earnings tax. Complete Form IT-257 and submit it with Form IT-205 to claim the credit.