As always, one has to be careful about what they sign their name to.
https://www.nyc.gov/assets/jointheboldest/downloads/pdf/pre-employment-new/Charter_1127_04_22.pdf
Original Message:
Sent: 04-29-2024 04:08 AM
From: Steven Sorian
Subject: Form nyc 1127
Thank you Dennis
I will find out and thank you.
Regards
Original Message:
Sent: 4/29/2024 12:27:00 AM
From: Dennis M Lee
Subject: RE: Form nyc 1127
Thanks Rob for responding. I only wished the original poster did too.
This form, Form NYC-1127, can be very confusing for a preparer encountering it for the very first time. Between the instructions and the form itself one would not be wrong wondering what the heck are "they' talking about. But, if one understands how the form came about it does make sense.
I'm no expert, but how it was explained to me is that at one time if a person worked for NYC, that person had to be a NYC resident. This city residency requirement was challenged in court and NYC lost, allowing NYC employees to live outside of NYC. Now, NYC wasn't about to give up and lose all that income tax revenue of all those employees moving out of NYC, the city implemented the NYC-1127 waiver. So yes, Rob, you are correct when you said it is a "condition of employment" and not a tax. I believe the city can't call it tax because it would then be "taxation without representation", but NYC can call it as a "condition of employment" and make the 1127 employee pay an amount equal to the amount as if the 1127 employee was a city resident; meaning that all income of the 1127 employee while considered as a 1127 employee is counted in determining the amount of the 1127 waiver. Now after reading the OP, my original reply and your response, it was not clear in the OP if the 1127 employee was a full year 1127 employee working a second job concurrently (as I assumed) or was a PY 1127 employee that had a job in the city prior to becoming a 1127 employee (most likely) which in that case any income earned prior to becoming a 1127 employee is not subject to the 1127 waiver. Maybe Steven will let us know, Steven?
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Dennis M Lee
Original Message:
Sent: 04-26-2024 01:42 PM
From: Robert Brown
Subject: Form nyc 1127
The 1127 is a condition of employment, not a tax. Unless the second job is subject at a NYC agency, I don't believe they are liable on the second job.
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Robert Brown
CPA
Adeptus Partners LLC
Jericho NY
516-364-4949
Original Message:
Sent: 04-15-2024 12:51 AM
From: Dennis M Lee
Subject: Form nyc 1127
It is my understanding the Husband (1127 employee) is taxed on all of his income as if he is a NYC Resident. Therefore, his second job in the city is also taxed. When filing MFS the only income that you back out is only income that pertains to his wife. Refer to the NYC-1127 instructions if you haven't already and you may have to read it a few times to make any sense of it.
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Dennis M Lee
Original Message:
Sent: 04-13-2024 06:16 AM
From: Steven Sorian
Subject: Form nyc 1127
I have a client who is subject to the NYC 1127 as a doctor through he city health and hospitals corp. He also has another NYC job in the city as well. His wife has a job here on Long Island so she should not be subject at all . Yet when I try to file the NYC 1127 with Proseries it won't let me separate the wages not subject to the 1127 unless I choose married filing separate on the 1127 then I have to reduce the total income by the aforementioned NYC job and the wife's job on Long Island. Any literature or opinions would be greatly appreciated