Form IT-195: Allocation of Refund (2026)

Last reviewed: 2025-10-29

Use the New York Tax Form Calculator Form IT-195 — Allocation of Refund (Attachment to Form IT-201 or IT-203) as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 New York state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Form IT-195 is used by full-year residents (filing IT-201) or nonresidents/part-year residents (filing IT-203-A) who wish to direct part or all of their New York refund into one or more of their NYS 529 college savings accounts or apply it toward their next year’s estimated tax rather than receive the refund directly.

This form must be attached to the same NY return that reports the overpayment and refund portion. If you do not file IT-195 or you do not direct the refund, the refund will be issued in cash or direct deposit per the return’s choice.

1. Who may use: Taxpayers who file Form IT-201 (full-year residents) or Form IT-203/IT-203-A (nonresidents/part-year residents) and expect a refund on their New York State income tax return.
2. Election options: You may allocate part or all of your refund to:
   • Up to three separate NYS 529 college savings accounts (enter each account and plan code, amounts in whole dollars only).
   • Apply any portion of your refund toward your next year’s New York estimated tax payment.
3. One form per return: Only file one IT-195 with your return. The total allocated (to 529s plus estimated tax) cannot exceed the refund amount shown on your return line (IT-201 line 78a or IT-203 line 68a).
4. Minimum amounts: Direct deposits into an NYS 529 must be in whole dollars; ensure amounts entered match the account plan and routing information entered. Estimated-tax allocation must not result in refund less than the minimum that triggers a refund issuance.
5. Record-keeping: Retain the return copies, IT-195 attachment, proof of account numbers/plan codes for each 529 deposit, and any confirmation from NY DTF of the estimated‐tax carryforward.

How to Complete the Allocation

Start with the refund amount on your return: IT-201 line 78a (resident) or IT-203 line 68a (nonresident/part-year). On IT-195, enter the amounts you want deposited into each of up to three NYS 529 accounts (lines 1 a, 2 a, 3 a). Add those amounts on line 4 and transfer the total to your return line above.

If you also want to apply part of your refund as an estimated‐tax payment, enter that amount in the box labeled “Estimated tax payment” on IT-195. The sum of 529 deposits and estimated tax cannot exceed the refund amount.

Example: Your NY refund is $1,200. On IT-195 you allocate $500 to NYS 529 Plan A (account X) and $400 to Plan B (account Y). Then you allocate $300 toward next year’s estimated tax. Your total allocation equals $1,200 and your return line 78a should reflect that the full refund is allocated accordingly.

Once filed, the allocations are irrevocable for that year. NY DTF processes the indicated deposits and estimated-tax carryforward based on the routing, account, and plan code information submitted. Incorrect account numbers may delay deposits or trigger paper check issuance.

Interactions to review: The IT-195 does not itself change your tax liability; it only directs disposition of your refund. If you amend your return or deduct a credit that reduces your refund, ensure the total allocation on the attached IT-195 is adjusted accordingly—if not, NY DTF may issue less than the allocated amount or adjust future carry‐forwards.

Practical Tips for Tax-Planning and Audit-Readiness

For taxpayers considering 529 funding or estimated tax strategy, complete your return and IT-195 before submission. Confirm account numbers and plan codes with your 529 provider in advance to avoid misrouting delays. Retain confirmation of deposit or carry-forward for portfolio and audit records.

If you receive a notice from NY DTF that your allocation was reduced (for example, because of past-due debt offsets), verify that the amount retained or redirected was based on the allocation information you submitted. You may still receive the remaining amount or a notice of explanation.

For married filing separately or co-owners with refund rights, coordinate the allocation between you to avoid duplicate applications of the same refund. Filing within the next year’s estimated payment window carries the same procedural requirement and triggers the same deposit process.

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Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.