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IT-201-I (2025) Page 7 of 41 Step 3: Enter your federal income and adjustments Lines 1 through 19: Federal income tax return information The calculation of your New York State, New York City, and Yonkers income tax is based on the information you reported on your federal income tax return, including your income and federal adjustments to income. If you did not file a federal return, you must report the same income and adjustments that you would have reported for federal income tax purposes if you had filed a federal return. The amount entered on line 1 (wages, salaries, tips, etc.) should be the same as the amount reported on federal Form 1040, line 1z. Be sure to enter your total other income on line 16 and your total federal adjustments to income on line 18. Write each type of income and each adjustment and its amount in the Identify areas on lines 16 and 18. If you need more room, submit a list on a separate sheet showing each type of income and each adjustment and its amount. Enter only whole dollar amounts on your New York return. Do not leave line 19 blank. Step 4: Calculate your New York additions and subtractions Overview The calculation of your New York State income tax is based on your New York adjusted gross income. Your New York adjusted gross income is your federal adjusted gross income after certain New York additions and New York subtractions (modifications). New York State taxes certain items of income not taxed by the federal government. You must add these New York additions to your federal adjusted gross income. Similarly, New York State does not tax certain items of income taxed by the federal government. You must subtract these New York subtractions from your federal adjusted gross income. See below and Form IT-225, New York State Modifications, and its instructions. Partners and S corporation shareholders If you have income from a partnership or S corporation, include any New York adjustments that apply to that income. The entity should provide you with this information. For important information regarding these modifications, see the instructions for Form IT-225. If you have either of the addition or subtraction modifications in the chart below, relating to your partnership or S corporation income, include the amount on the corresponding line of Form IT-201. For all other additions and subtractions relating to your partnership and S corporation income, complete Form IT-225. Modification code Description Line number EA-113 Interest income on state and local bonds and obligations 20 ES-125 Interest income on U.S. government bonds 28 Beneficiaries (estates and trusts) If you have income from an estate or trust, any New York adjustments that apply to that income, as well as any additions to or subtractions from federal itemized deductions, will be shown in your share of a single fiduciary adjustment. • If the adjustment is a net addition, enter the amount and addition modification number EA-901 on Form IT-225, line 5. • If the adjustment is a net subtraction, enter the amount and subtraction modification number ES-901 on Form IT-225, line 14. When you have completed Form IT-225, transfer the amounts to Form IT-201 as instructed on Form IT-225. If you filed federal Form 4970, Tax on Accumulation Distribution of Trusts: • do not include on Form IT-201, line 11 the income you reported on Form 4970, line 1 because the IRC considers the distribution part of federal gross income. • do include on your Form IT-225, line 5 the amount of income you reported on Form 4970, line 1, after subtracting any interest income on state and local bonds and obligations of New York State and its local governments that you included on Form 4970, line 5. See addition modification number A-114 in the instructions for Form IT-225. New York additions Line 20: Interest income on state and local bonds and obligations Do you have interest income from state and local bonds and obligations from states other than New York State or its local governments? • If No, go to line 21. • If Yes, enter any such interest income that you received or that was credited to you during 2025 that was not included in your federal adjusted gross income. This includes interest income on: – state and local bonds, – interest and dividend income from tax-exempt bond mutual funds, and – tax-exempt money market funds that invest in obligations of states other than New York. If you purchased a bond between interest dates, include the amount of interest you received during the year, after subtracting the seller’s accrued interest (the amount accrued from the interest date preceding your purchase to the date you purchased the bond). You should have received this information when you purchased the bond. If you sold a bond between interest dates, include the amount of interest you received during the year plus the accrued interest amount (the amount accrued from the interest date preceding the date you sold the bond to the date you sold the bond). You should have received this information when you sold the bond. For purposes of this addition, bond premium amortization is not allowed as a direct offset to interest income. You must report it: • as a subtraction modification on Form IT-225—if the bond premium is attributable to a trade or business, or • as an itemized deduction addition adjustment on Form IT-196, line 44—if the bond premium is not attributable to a trade or business, but only if you itemize.