When preparing your New York return, you may see a Special Conditions section. Most taxpayers will leave these options blank. However, if one of the situations below applies to you, selecting the correct special condition helps ensure your return is processed correctly and any special filing deadlines, residency elections, or tax benefits are properly recognized.
Build America Bond (BAB) Interest
Select this option if you included Build America Bond (BAB) interest in your federal adjusted gross income (AGI).
Although BAB interest is taxable for federal purposes, New York applies special reporting rules. This option alerts New York that your federal AGI includes BAB interest so certain state calculations can be adjusted appropriately.
Losses From Ponzi-Type Fraudulent Investment Arrangements
Select this option if you claimed a theft loss deduction under the federal safe harbor rules for a Ponzi-type investment scheme using Federal Form 4684.
If this applies, you must also attach the statement required under Revenue Procedure 2009-20 when filing your New York return.
Death of a Spouse
Select this option if your spouse died within 30 days before the due date of your return and you qualify for New York's automatic 90-day extension to file.
Military Spouse Exempt Income
This condition applies to certain spouses of military service members under federal military residency rules.
A qualifying military spouse may be able to use the same state residency status as the service member for state income tax purposes. This can affect whether income is taxable by New York and how the return should be filed.
Combat Zone
Select this option if you qualify for an extension of time to file and pay taxes because you served in a combat zone or participated in a qualifying contingency operation.
Killed in Action
Select this option if you are filing a New York return on behalf of a member of the armed forces who died while serving in a combat zone.
This may qualify the service member's estate for special tax forgiveness provisions.
Out of the Country
Select this option if you qualify for the federal automatic two-month extension to file because you were living or working outside the United States and Puerto Rico on the regular due date of your return.
Keep in mind that this extension applies to filing the return, not to paying any tax owed.
Nonresident Alien
Select this option if you are a U.S. nonresident alien for federal tax purposes and qualify for the special federal filing deadline of June 15, 2027.
Extension of Time to File Beyond Six Months
Select this option if either of the following applies:
- You qualify for an extension beyond six months because you are outside the United States and Puerto Rico.
- You received a federal extension to qualify for the foreign earned income exclusion or foreign housing exclusion or deduction.
Additional documentation may be required.
Request Installment Agreement
Select this option if you cannot pay your tax balance in full and want to request a New York installment payment agreement.
You will receive a bill from New York with information about setting up the payment plan. Interest and penalties may continue to accrue on any unpaid balance.
Veterans Benefits and Transition Act Election
Select this option if you are the civilian spouse of a military service member and are electing to use the same state of legal residence as the service member for state income tax purposes.
For additional information, see TSB-M-19(3)I, Veterans Benefits and Transition Act of 2018.
How Do I Access the New York Special Conditions Screen?
To access this section in the program:
- Select State
- Edit New York Return (Click the 3 dots)
- Choose Basic Information
- Select Special Conditions
Only choose a special condition if one of the situations described above applies to your tax year. Most taxpayers will not need to make a selection in this section.