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New Year, New IT-2104 in New York

By Richard J. Koreto
Posted on 2/9/12

The New York Department of Taxation and Finance has revised its Form IT-2104, Employee’s Withholding Allowance Certificate, for tax year 2012 due to legislative changes. Employees may need to complete new ones and give them to their employers to have the correct amount of tax withheld from their pay.

"The worksheet, charts, and additional dollar amounts in the instructions, used to compute withholding allowances or to request an additional dollar amount to withhold, have been revised," the department noted in an email.

The form itself noted several changes from the previous year, some of which may result in withholding changes: The worksheet on page 3, the charts beginning on page 4, and the additional dollar amounts in the instructions on page 2, used to compute withholding allowances or to enter an additional dollar amount on line(s) 3, 4, or 5, have been revised.

Among the significant changes: the page 4 charts say they are "only for married couples with both spouses working or married couples with one spouse working more than one job, and whose combined wages are between $100,000 and $2,100,000." Previously, the ceiling was $1.1 million.

There are also tables for single taxpayers and head of household taxpayers with more than one job as part of a new Part 5, a section not in the previous IT-2104.

One instruction that hasn't changed is the warning about what happens if a Form IT-2104 is not filed: "Your employer may use the same number of allowances you claimed on federal Form W-4. Due to differences in tax law, this may result in the wrong amount of tax withheld for New York State, New York City, and Yonkers."