Y-206: Yonkers Nonresident Fiduciary Earnings Tax Return (2025)
New York · NY DTF · Used for tax years 2025
Form Y-206 is the Yonkers Nonresident Fiduciary Earnings Tax Return. It reports an estate’s or trust’s wages and net earnings from self-employment in Yonkers and calculates the nonresident earnings tax. It 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.
What you'll need
Have the following information and documents ready, as applicable:
- Form IT-205 and its instructions. Review those instructions before completing Y-206.
- Estate or trust identification. Use the name shown on federal Form SS-4, the federal employer identification number (EIN), and the fiduciary’s name and title.
- Self-employment records. Line 1 uses federal Form 1040, Schedule SE, Part 1, line 4c, with the adjustment described in the Y-206 instructions. Submit a detailed statement showing the net earnings calculation, including gross business income and the specified deductions.
- Charitable and distribution schedules. Submit schedules for line 2 amounts paid or permanently set aside for charity and line 4 amounts distributed or distributable to Yonkers residents.
- Employee wage and tax statements. Submit these for wages and other employee compensation. They should also show any eligible START-UP NY wages.
- Allocation schedules. If income was earned partly in and partly outside Yonkers, submit details showing how you allocated it.
- Other supporting forms or schedules. If claiming a claim of right credit, complete Form IT-257 and submit it with IT-205. If using a lower tax calculated as a Yonkers resident, submit a separate computation schedule with Y-206.
How to file
- Review the Form IT-205 instructions, then enter the estate or trust’s name, EIN, and the fiduciary’s name and title on Y-206.
- Complete the earnings tax calculation and attach the required statements and schedules. If income is allocated between Yonkers and elsewhere, mark box A and submit a detailed allocation statement.
- Enter the tax from Y-206, line 10, on Form IT-205, line 27.
- Submit Form Y-206 with Form IT-205.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Not identifying a loss on line 1. If there is a loss, write “loss” on line 1.
- Leaving START-UP NY wages out of 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.
- Leaving identification off a workday-based wage allocation schedule. Include your name and taxpayer identification number.
- Claiming an exclusion when the relevant total exceeds $30,000. The exclusion table states that there is no exclusion if the annual total of wages and net earnings, lines 1 plus 6b, exceeds $30,000.
- Forgetting to submit Y-206 with IT-205. The form specifically requires them to be submitted together.
Questions people ask
What tax rate does Form Y-206 use?
Line 10 instructs you to multiply the taxable amount on line 9 by 0.5% (.005).
What if income was earned both in and outside Yonkers?
Mark box A and submit a detailed allocation statement. The instructions provide separate allocation methods for wages and net earnings from self-employment. If the business producing self-employment earnings has no regular place of business outside Yonkers, allocate all those net earnings to Yonkers.
Does a short tax year affect the exclusion?
Yes. Prorate the exclusion if the estate or trust has a tax period of less than one year, or if a trust changes its residence to or from Yonkers during the year. Count a period of more than half a month as a full month; do not count a period of half a month or less. Then use the exclusion table.
Can the tax be limited to the amount due as a Yonkers resident?
Yes. The estate or trust does not owe more Yonkers nonresident earnings tax than it would owe in Yonkers resident income tax surcharge. Use Form IT-205 and its instructions to calculate the liability as if it were a resident. If that amount is lower, submit a separate computation schedule with Y-206 and enter the lower amount on line 10.