Instructions for Form IT-221 Disability Income Exclusion - New York

Form IT-221 Disability Income Exclusion - New York

This document contains official instructions for Form IT-221 , Disability Income Exclusion - a form released and collected by the New York State Department of Taxation and Finance. An up-to-date fillable Form IT-221 is available for download through this link.

FAQ

Q: What is Form IT-221?
A: Form IT-221 is a tax form used in New York to claim the Disability Income Exclusion.

Q: What is the Disability Income Exclusion?
A: The Disability Income Exclusion allows individuals with disabilities to exclude a portion of their disability income from New York state taxes.

Q: Who is eligible for the Disability Income Exclusion?
A: New York residents who receive disability income and meet certain criteria are eligible for the exclusion.

Q: What is considered disability income?
A: Disability income includes benefits received from disability insurance policies, workers' compensation, and certain government programs.

Q: How much of the disability income can be excluded?
A: For 2021, up to $40,000 of disability income can be excluded for individuals under the age of 65, and up to $20,000 can be excluded for individuals aged 65 and older.

Q: What are the criteria to qualify for the Disability Income Exclusion?
A: To qualify, you must be certified as disabled by the appropriate agency and meet certain income requirements.

Q: How do I claim the Disability Income Exclusion?
A: To claim the exclusion, you must complete and file Form IT-221 with your New York state tax return.

Q: Are there any other requirements or documentation needed?
A: Yes, you will need to provide supporting documentation, such as a disability determination letter, with your Form IT-221.

Q: Can I claim the Disability Income Exclusion if I am receiving Social Security Disability benefits?
A: Yes, Social Security Disability benefits can be included as part of your disability income for the purposes of the exclusion.