Form IT-230 Separate Tax on Lump-Sum Distributions - New York

What Is Form IT-230?

This is a legal form that was released by the New York State Department of Taxation and Finance - a government authority operating within New York. As of today, no separate filing guidelines for the form are provided by the issuing department.

FAQ

Q: What is Form IT-230?
A: Form IT-230 is used to calculate and report the separate tax on lump-sum distributions in New York.

Q: What are lump-sum distributions?
A: Lump-sum distributions are one-time payments from a retirement plan, such as a pension or IRA, that represent a significant portion of the total balance.

Q: Who needs to file Form IT-230?
A: New York residents who received a lump-sum distribution from a retirement plan and are subject to the separate tax on such distributions need to file Form IT-230.

Q: What is the purpose of the separate tax on lump-sum distributions?
A: The separate tax on lump-sum distributions in New York is designed to prevent taxpayers from receiving excessive tax benefits from a one-time distribution of retirement plan assets.

Q: How do you calculate the separate tax on lump-sum distributions?
A: The calculation of the separate tax on lump-sum distributions is based on a formula provided by the New York State Department of Taxation and Finance. Form IT-230 includes instructions and a worksheet to help taxpayers determine the tax amount.