1. (1) The New York taxable income for the portion of the taxable year during which an individual was a resident must be determined, except for the special accruals required by section 154.10 of this Part, under Article 2 of this Subchapter, as if such individual's taxable year for Federal income tax purposes were limited to the period of resident status. The New York taxable income for the remaining portion of the taxable year during which such individual was a nonresident must be determined, under Article 3 of this Subchapter, as if such individual's taxable year for Federal income tax purposes were limited to the period of nonresident status, subject to the provisions regarding special accruals set forth in sections 154.10 and 154.11 of this Part.

   1. (i) In determining the New York taxable income of an individual for such individual's respective periods of residence and nonresidence, annual limitations with respect to specific items of income, gain, loss and deduction such as dividend exclusions, capital losses, medical expenses, contributions, casualty and theft losses, etc., applicable for Federal income tax purposes, are to be applied separately to the applicable Federal items attributable to the separate periods covered by the New York State resident and nonresident personal income tax returns required under this Part. Example:

      Example:

      A husband and wife filed a joint Federal income tax return for the calendar year 1985 showing Federal adjusted gross income of $20,000, all from New York State sources. They were residents of New York State from January 1, 1985 through June 30, 1985, and became nonresidents on July 1, 1985. They elected to file joint New York State resident and nonresident personal income tax returns for their respective periods of residence and nonresidence, properly reporting $10,000 on each New York State personal income tax return. They itemized their deductions for Federal income tax purposes and they also elected to itemize their deductions for New York State personal income tax purposes. The taxpayers incurred and paid medical expenses of $1,950 during the taxable year and computed an allowable Federal medical deduction of $950 determined in the following manner:

      Prescription medicines and drugs	$ 400
      Other medical expenses (including doctors, hospitals, medical insurance premiums, etc.).	1,550
      Total	$1,950
      Less 5% of Federal adjusted gross income (5% of $20,000)	1,000
      Federal medical expense deduction	$ 950

      Assuming that the medical expenses shown in the following computation represent the amounts of those medical expenses incurred during the respective periods of residence and nonresidence, there would be no allowable medical deduction to claim on the New York State resident personal income tax return and the allowable medical deduction to claim on the New York State nonresident personal income tax return would be $1,025:

      	Resident return	Nonresident return
      Medical expenses incurred: Prescription medicines and drugs	$ 75	$ 325
      Other medical expenses (including doctors, hospitals, medical insurance premiums, etc).	350	1,200
      Total	$ 425	$1,525
      Less 5% of Federal adjusted gross income	500	500
      New York State medical deduction allowed	–0	$1,025

   2. (ii) Further, in determining the New York taxable income of an individual for such individual's respective periods of residence and nonresidence, the annual limitation with respect to the pension and annuity income modification allowed by section 612(c)(3-a) of the Tax Law (see section 112.3[c][2] of this Title) is to be applied separately to the separate periods covered by the New York State resident and nonresident personal income tax returns required under this Part. No proration of the annual limitation based on the period of time covered by each New York State personal income tax return is required to be made.

   (2)

2. (3) The New York personal service taxable income for the portion of the taxable year during which an individual was a resident must be determined in accordance with the provisions of section 603-A of the Tax Law applicable to a resident individual, as if such individual's taxable year for Federal income tax purposes were limited to the period of resident status. The amount of each item entering into the computation of New York personal service taxable income of such taxpayer for the period of residence must also be determined in accordance with the provisions of this Part which apply to such items for the period of residence. The New York personal service taxable income for the remaining portion of the taxable year during which the individual was a nonresident must be determined in accordance with the provisions of section 603-A of the Tax Law applicable to a nonresident individual, as if such individual's taxable year for Federal income tax purposes were limited to the period of nonresident status. The amount of each item entering into the computation of New York personal service taxable income for the period of nonresidence must also be determined in accordance with the provisions of this Part which apply to such items for the period of nonresidence.
3. (4) The New York State minimum taxable income for the portion of the year during which an individual was a resident is determined, except for the special accruals required by section 154.10 of this Part, under Part 122 of this Title, as if such individual's taxable year for Federal income tax purposes were limited to the period of resident status. The New York State minimum taxable income for the portion of the year during which an individual was a nonresident is determined, under Part 141 of this Title, as if such individual's taxable year for Federal income tax purposes were limited to the period of nonresident status, subject to the provisions regarding special accruals set forth in sections 154.10 and 154.11 of this Part.

4. (5) In determining the New York State minimum taxable income of an individual for such individual's respective periods of residence and nonresidence, the specific deduction allowed for each such period is the same as allowed by Parts 122 and 141 of this Title. No proration of the specific deduction based on the period of time covered by each New York State personal income tax return is required to be made. Furthermore, in determining the New York State personal income tax applicable to the resident and nonresident periods in arriving at New York State minimum taxable income for each such period (see sections 122.1[b][2] and 141.1[b][2] of this Title), the New York State personal income tax on the combined New York taxable income or New York personal service taxable income for each period, minus the credits referred to in section 122.1(b)(2) and section 141.1(b)(2), is to be apportioned on forms IT-220 filed for the separate periods in the ratio that the separately computed New York State personal income tax for the particular period, minus the credits referred to in section 122.1(b)(2) and section 141.1(b)(2) applicable to that particular period, is to the total of such separately computed New York State personal income taxes on the separate New York State personal income tax returns. The following example illustrates the application of the provisions of this paragraph (assume the taxable year is the calendar year 1979 and the taxpayer did not have any New York personal service taxable income).

   	New York taxable income	New York State personal income tax
   Resident personal income tax return	$50,000	$5,560
   Nonresident personal income tax return	10,000	450
   Total of separate New York State personal income taxes		$6,010
   Combined New York taxable income	$60,000
   New York State personal income tax on combined New York taxable income		$6,960

   Apportionment of New York State

   personal income tax for New York State minimum

   income tax purposes on forms IT-220 for the resident

   and nonresident periods:

   Resident period:

   ^$5,560/_$6,010 × $6,960 = $6,438.87

   Nonresident period:

   ^{$ 450}/_$6,010 × $6,960 = $521.13

   (b) Trust.

5. (1) Where a trust changes its resident status during its taxable year in accordance with the provisions of section 154.3 of this Part, the New York taxable income for the portion of the taxable year during which the trust was a resident trust is determined, except for the special accruals required by section 154.10 of this Part, under Part 118 of this Title, as if its taxable year for Federal income tax purposes were limited to the period of its resident status. The New York taxable income for the remaining portion of its taxable year during which such trust was a nonresident trust is determined, under Part 138 of this Title, as if its taxable year for Federal income tax purposes were limited to the period of its nonresident status, subject to the provisions regarding special accruals set forth in sections 154.10 and 154.11 of this Part.

   1. (i) In determining the New York taxable income of such a trust for its respective periods of residence and nonresidence, annual limitations with respect to specific items of income, gain, loss and deduction, such as dividend exclusions, capital losses, casualty and theft losses, etc., applicable for Federal income tax purposes, are to be applied separately to the applicable Federal items attributable to the separate periods covered by the New York State resident and nonresident fiduciary returns required under this Part.
   2. (ii) Further, in determining the New York taxable income of such a trust for its respective periods of residence and nonresidence, the annual limitation with respect to the pension and annuity income modification allowed by section 612(c)(3-a) of the Tax Law (see section 112.3[c][2] of this Title) is to be applied separately to the separate periods covered by the New York State resident and nonresident fiduciary returns required under this Part. No proration of the annual limitation based on the period of time covered by each New York State fiduciary return is required to be made.

   (2)

6. (3) The New York personal service taxable income for the portion of the taxable year during which a trust or a portion of a trust was a resident trust must be determined in accordance with the provisions of section 603-A of the Tax Law applicable to a resident trust, as if the taxable year of such trust or portion of a trust for Federal income tax purposes were limited to the period of resident status. The amount of each item entering into the computation of New York personal service taxable income of such trust or portion of a trust for the period of residence must also be determined in accordance with the provisions of this Part which apply to such items for the period of residence. The New York personal service taxable income for the remaining portion of the taxable year during which such trust or portion of a trust was a nonresident trust must be determined in accordance with the provisions of section 603-A of the Tax Law applicable to a nonresident trust, as if the taxable year of such trust or portion of a trust for Federal income tax purposes was limited to the period of nonresident status. The amount of each item entering into the computation of New York personal service taxable income for the period of nonresidence must also be determined in accordance with the provisions of this Part which apply to such items for the period of nonresidence.
7. (4) The New York State minimum taxable income for the portion of the year during which a trust was a resident trust is determined, except for the special accruals required by section 154.10 of this Part, in accordance with the applicable provisions of Part 122 of this Title, as if its taxable year for Federal income tax purposes were limited to the period of its resident status. The New York State minimum taxable income for the portion of the year during which such trust was a nonresident trust is determined, in accordance with the applicable provisions of Part 141 of this Title, as if its taxable year for Federal income tax purposes were limited to the period of its nonresident status, subject to the provisions regarding special accruals set forth in sections 154.10 and 154.11 of this Part.
8. (5) In determining the New York State minimum taxable income of a trust for its respective periods of residence and nonresidence, the specific deduction allowed for each such period is the same as allowed by sections 122.7(b) and 141.2(b) of this Title. No proration of the specific deduction based on the period of time covered by each New York State fiduciary return is required to be made. Furthermore, in determining the New York State personal income tax applicable to the resident and nonresident periods in arriving at New York State minimum taxable income for each such period (see sections 122.1[b][2] and 141.1[b][2] of this Title), the New York State personal income tax on the combined New York taxable income or New York personal service taxable income for each period, minus the credits referred to in sections 122.1(b)(2) and 141.1(b)(2) of this Title, is to be apportioned on forms IT-220 filed for the separate periods in the same manner as in the case of an individual. See paragraph (a)(5) of this section.

Tax Law, §§ 654(b), (g) and 603-A

(a) Individual.