Form IT-203-B: Nonresident and Part-Year Resident Income Allocation and College Tuition Itemized Deduction Worksheet (2026)

Q: How much income can be excluded on IT-221?

You may exclude up to <b>$5,000 ($10,000 for joint filers)</b> of qualifying disability income, reduced by any NY pension or annuity exclusion previously claimed.

Q: Are HSA contributions deductible for New York tax?

No—unlike the federal system, New York does <b>not</b> allow an HSA deduction.

Last reviewed: 2025-10-29

Use the New York Tax Form Calculator Form IT-203-B — Nonresident and Part-Year Resident Income Allocation and College Tuition Itemized Deduction Worksheet 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-203-B is required for nonresidents and part-year residents who need to allocate income and deductions between New York and other jurisdictions. The form also provides the College Tuition Itemized Deduction Worksheet used when claiming tuition expenses on Form IT-203. The allocation portion ensures that only income earned or derived from New York sources is taxed by the state, while non-New York income remains excluded.

Part-year residents must divide income and deductions between the resident and nonresident periods, applying New York rules for apportionment. Nonresidents use the allocation to determine the New York percentage used on IT-203, line 50.

Who must file: You must complete IT-203-B if you were a nonresident or part-year resident with income from both New York and other states or if you are claiming the college tuition itemized deduction.
Purpose of allocation: This worksheet divides total income into the portion earned from New York sources and the portion earned elsewhere. It ensures the New York tax applies only to the income connected with New York activities.
Key allocations: Common income sources include wages for work performed in New York, business income allocated via IT-203-A, rental income from New York property, and gains from New York real estate.
Part-year allocation: Part-year residents must separate income for the period they were New York residents and for the period they were not. Deductible items and credits are allocated according to the residency rules explained in the form instructions.
College tuition itemized deduction: The second part of the form allows qualified taxpayers to compute the deduction for tuition expenses for themselves, their spouse, or dependents attending eligible institutions, following New York Education Law criteria.

Nonresident and Part-Year Resident Income Allocation And College Tuition Itemized Deduction Worksheet
Complete all parts that apply to you; see instructions (Form IT-203-I). Submit this form with your Form IT-203.
Schedule A – Allocation of wage and salary income to New York State
Complete a separate Schedule A for each job for which your wage and salary income is subject to allocation. An additional Schedule A section is provided on the back of this form. If you are required to complete more than one Schedule A, total the amounts from line p on all schedules and include this total on Form IT-203, line 1, in the New York State amount column. Do not use this schedule for income based on the volume of business transacted. See the Schedule A instructions if: • You had more than one job; • You had a job for only part of the year; or • You and your spouse each had a job that requires allocation.
1a	Total days (see instructions)				1a
Nonworking days included in line 1a:		1b	Saturdays and Sundays (not worked)	1b
		1c	Holidays (not worked)	1c
		1d	Sick leave	1d
		1e	Vacation	1e
		1f	Other nonworking days	1f
1g	Total nonworking days (add lines 1b through 1f)				1g
1h	Total days worked in year at this job (subtract line 1g from line 1a)				1h
1i	Total days included in line 1h worked outside New York State			1i
1j	Enter number of days worked at home included in line 1i amount			1j
1k	Subtract line 1j from line 1i				1k
1l	Days worked in New York State (subtract line 1k from line 1h)				1l
1m	Enter number of days from line 1h above				1m
1n	Divide line 1l by line 1m; round the result to the fourth decimal place				1n
1o	Wages, salaries, tips, etc. (to be allocated)				1o
1p	New York State allocated wage and salary income (multiply line 1n by line 1o)				1p
Include the line 1p amount on Form IT-203, line 1, in the New York State amount column.
Schedule B – Living quarters maintained in New York State by a nonresident
Mark an X in the box if NYS living quarters were maintained for you or by you for the entire tax year
If you or your spouse maintained living quarters in NYS during any part of the year, give address(es) below. Submit additional sheets if necessary. For column E, mark an X in the box if the living quarters are still maintained for or by you.
A – Street address		B – City, village, or post office	C	D – ZIP code	E
			NY
			NY
			NY
			NY
Enter the number of days spent in New York State in this tax year Any part of a day spent in New York State is considered a day spent in New York State
Schedule C – College tuition itemized deduction worksheet (See the instructions for Schedule C.)
1	Are you claimed as a dependent on another taxpayer’s New York State tax return for this tax year? • If Yes, stop; you do not qualify for the college tuition itemized deduction. • If No, continue. Complete lines A through H below for each eligible student for whom you paid qualified college tuition expenses. Use additional sheets if necessary.				1	Yes No
		1 - Student 1		2 - Student 2	3 - Student 3
A	Eligible student’s name
B	Eligible student’s social security number (SSN)
C	Is the student claimed as a dependent on your NYS return? (see instructions)	Yes		Yes	Yes
D	EIN of college or university (see instr.)
E	Name of college or university (see instr.)
F	Were expenses for undergraduate tuition? (see instructions)	Yes		Yes	Yes
G	Amount of qualified college tuition expenses (see instructions)
H	Enter the lesser of line G or
2	College tuition itemized deduction (add line H, columns 1, 2, and 3; include amounts from any additional sheets). Also enter this amount on your itemized deduction schedule				2
Schedule A – Allocation of wage and salary income to New York State
2a	Total days (see instructions)				2a
Nonworking days included in line 2a:		2b	Saturdays and Sundays (not worked)	2b
		2c	Holidays (not worked)	2c
		2d	Sick leave	2d
		2e	Vacation	2e
		2f	Other nonworking days	2f
2g	Total nonworking days (add lines 2b through 2f)				2g
2h	Total days worked in year at this job (subtract line 2g from line 2a)				2h
2i	Total days included in line 2h worked outside New York State			2i
2j	Enter number of days worked at home included in line 2i amount			2j
2k	Subtract line 2j from line 2i				2k
2l	Days worked in New York State (subtract line 2k from line 2h)				2l
2m	Enter number of days from line 2h above				2m
2n	Divide line 2l by line 2m; round the result to the fourth decimal place				2n
2o	Wages, salaries, tips, etc. (to be allocated)				2o
2p	New York State allocated wage and salary income (multiply line 2n by line 2o)				2p
Include the line 2p amount on Form IT-203, line 1, in the New York State amount column.

Income Allocation Section

Start by listing each source of income and determining whether it is taxable to New York. For wages, allocate by days worked inside versus outside the state. For business income, use your business allocation from IT-203-A. For rents, royalties, or real estate, include only income connected with New York property. Dividends and certain intangible income are generally excluded unless they are connected with a business operating in New York.

Part-year residents: Compute the portion earned while a New York resident and the portion earned while outside New York. Report only New York-source items in the New York column. Maintain clear documentation for each allocation method (for example, a workday log for employment income).

New York percentage: After computing total and New York-source income, divide New York-source income by total income. The resulting percentage is carried to IT-203, line 50, to determine the proportion of tax applied to total income. Ensure this figure matches across forms.

College Tuition Itemized Deduction Section

Use the lower section of IT-203-B to compute the College Tuition Itemized Deduction. Enter the total qualified tuition expenses paid for each eligible student during the year. The deduction is limited to tuition actually paid, excluding fees, books, or room and board. Only one deduction per student is allowed per tax year. Follow the line-by-line worksheet instructions to determine your deductible amount and transfer it to the itemized deduction schedule on IT-203.

Example: A part-year resident earned $90,000, with $60,000 sourced to New York. The New York percentage is 66.67%. Tuition paid for a dependent was $12,000, yielding the allowable deduction from the worksheet that flows to the itemized deduction schedule on IT-203. The final tax calculation on IT-203 uses the 66.67% allocation to determine New York tax due.

Common Issues and Accuracy Checks

Residency overlap: Verify dates of residence and cross-reference with employer wage records. Inaccurate day counts can trigger audit adjustments.

Employer withholding: If you worked part of the year outside New York, confirm whether the employer withheld incorrectly for full-year NY residence. You may need to adjust using IT-203-B to reclaim overwithheld amounts.

Tuition documentation: Retain proof of qualified tuition payments (Form 1098-T or bursar receipts). Ensure the student meets the eligibility criteria under New York rules.

Multiple jurisdictions: If you paid income tax to another state while also earning New York income, coordinate with IT-112-R to avoid double taxation and maintain consistency in allocation.

Last reviewed: 2025-10-29: If you believe this form requires an update, please contact us.

Planning & Compliance Tips

Maintain detailed allocation records: Work logs, timesheets, client invoices, and property schedules support your allocations and are critical for audit defense. Keep these for at least three years after filing.

Synchronize allocation forms: Ensure IT-203-A, IT-225, and IT-203-ATT all align with the same New York-source figures. Consistency across forms prevents underreporting notices or refund delays.

Tuition deduction optimization: Evaluate whether the tuition itemized deduction or available New York credits yield a better outcome for your household. Compare with any applicable federal education credits, though they do not directly affect New York calculations.

Quick Access Tools

Frequently Asked Questions

Does IT-203-ATT replace IT-112-R or IT-112-C?

No. Those forms calculate credits for taxes paid to other jurisdictions, and their totals are then entered onto IT-203-ATT where indicated.

How much income can be excluded on IT-221?

You may exclude up to $5,000 ($10,000 for joint filers) of qualifying disability income, reduced by any NY pension or annuity exclusion previously claimed.

Can part-owners of a property claim IT-119?

Yes — if the notice issued reflects the property key and entity ownership, each owner must enter their share of the underpayment on IT-119 and may attach separate forms as required.

Can I use IT-203-B to claim the NY College Tuition Deduction?

Yes. Part 2 of IT-203-B calculates the allowable college tuition itemized deduction or credit, depending on your AGI and tuition amounts paid.

Are HSA contributions deductible for New York tax?

No—unlike the federal system, New York does not allow an HSA deduction.

Important Notes

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