New York source income is the portion of income earned by nonresidents, part-year residents, estates, and trusts that is taxable by New York State. Understanding this concept is crucial for businesses and individuals looking to partner for income growth, especially in thriving hubs like Austin, Texas, where many are keen on expanding into the New York market. At income-partners.net, we provide comprehensive resources to navigate these complexities, including strategies for optimizing tax efficiency and maximizing partnership potential. By leveraging these insights, you can make informed decisions and unlock new avenues for financial success.
1. What Exactly Constitutes New York Source Income?
New York source income refers to the income that nonresidents and part-year residents earn from sources within New York State. This includes income, gains, losses, and deductions derived from real or tangible property in New York, services performed in the state, or businesses conducted there. Essentially, if your income is tied to economic activities within New York, it’s likely considered New York source income.
New York source income includes, but is not limited to:
- Real Property: Income from rental properties or gains from the sale of real estate located in New York State.
- Tangible Personal Property: Income related to tangible personal property located in New York State.
- Services Performed: Wages, salaries, and other compensation for services performed within New York State, regardless of where the payment is made.
- Business Activities: Profits or losses from a business, trade, profession, or occupation carried on in New York State.
- Partnership Income: Your distributive share of partnership income or gain derived from New York State sources.
- Estate or Trust Income: Your share of New York State estate or trust income or gain.
- Lottery Winnings: New York State Lottery winnings if the total proceeds of the prize are more than $5,000 (see Publication 140-W).
- Cooperative Housing Shares: Any gain from the sale, transfer, or other disposition of shares of stock in a cooperative housing corporation when the real property is in New York State.
- Prior Business Activities: Income related to a business, trade, profession, or occupation previously carried on in New York State, including covenants not to compete and termination agreements (see TSB-M-10(9)I).
- New York S Corporation Income: Income as a shareholder of a New York S corporation, including gains from installment obligations, deemed asset sales, and installment sale contracts (see TSB-M-10(10)I).
For instance, if you’re a business owner in Austin, TX, considering a partnership with a New York-based company, understanding these nuances is essential. Income Partners provides expert guidance to navigate these intricacies and build lucrative partnerships.
2. What Income Is Excluded from New York Source Income for Nonresidents?
Certain types of income are specifically excluded from New York source income for nonresidents. It’s important to know these exclusions to accurately determine your tax obligations.
New York source income does not include:
- Pension Plans: Income from pension plans described in section 114 of Title 4 of the U.S. Code (see Publication 36).
- Annuities and Pensions: Income from annuities and pensions that meet the New York State definition of an annuity, unless used as an asset of a New York State business.
- Intangible Personal Property: Interest, dividends, or gains from the sale or exchange of intangible personal property, unless part of income from a business in New York State.
- Gambling Winnings: Gambling winnings, other than lottery winnings exceeding $5,000, unless you are in the business of gambling in New York State.
- Military Pay: Compensation for active service in the United States military.
- Military Spouse Income: Income earned in New York State as a military spouse (see TSB-M-10(1)I).
- C Corporation Income: Your income as a shareholder of a corporation that is a New York C corporation.
- Interstate Carrier Compensation: Compensation from an interstate rail carrier, interstate motor carrier, or interstate motor private carrier for regularly assigned duties performed in more than one state.
- Interstate Air Carrier Compensation: Compensation from an interstate air carrier if 50% or less of that compensation is earned in New York State.
- Vessel Duties: Compensation paid to you if you are engaged on a vessel to perform assigned duties in more than one state as a licensed pilot, master, officer, or crewman operating on navigable waters.
Knowing these exclusions can significantly impact your tax planning. For example, if you’re a remote worker based in Austin but occasionally travel to New York for business, understanding these rules helps you correctly allocate your income and minimize your tax burden. At income-partners.net, we specialize in helping businesses like yours optimize your financial strategies.
3. How Is New York Source Income Calculated for Part-Year Residents?
For individuals who are part-year residents of New York, calculating New York source income involves a combination of factors. It’s crucial to understand this calculation to ensure accurate tax reporting.
If you are a part-year resident, your New York source income is the sum of:
- Resident Period Income: All income reported on your federal return for the period you were a New York State resident.
- Nonresident Period Income: Your New York source income for the period you were a nonresident.
This means you need to carefully track your income and residency status throughout the year. Accurately determining your resident and nonresident periods is essential for proper tax filing.
4. What Are Special Accruals and How Do They Affect New York Source Income?
Special accruals come into play when you change your residency status, moving in or out of New York State. These accruals can adjust your New York source income, affecting your tax liability.
When you change your resident status, your New York source income may be subject to adjustments for special accruals. These adjustments ensure that income is properly allocated to the correct period, whether you were a resident or nonresident.
- Moving In: If you move into New York, you may need to accrue income that was earned outside of New York but is related to your New York residency.
- Moving Out: If you move out of New York, you may need to accrue income that will be earned after you leave but is related to your New York residency.
For detailed guidance on special accruals, refer to Form IT-260-I, Instructions for Forms IT‑260 and IT-260.1 Change of Resident Status – Special Accruals; and Form IT-203-I, Instructions for Form IT-203 Nonresident and Part-Year Resident Income Tax Return.
5. Which Tax Forms Do You Need to File If You Have New York Source Income?
Filing the correct tax forms is essential for compliance. Knowing which forms to use depends on your residency status and the nature of your income.
If you have New York source income, you may be required to file a New York State income tax return. The specific form you need to file depends on whether you are a resident, nonresident, or part-year resident.
- Residents: Typically file Form IT-201, Resident Income Tax Return.
- Nonresidents: Typically file Form IT-203, Nonresident and Part-Year Resident Income Tax Return.
- Part-Year Residents: Also file Form IT-203, allocating income between the resident and nonresident periods.
Consulting with a tax professional or using tax preparation software can help ensure you file the correct forms and accurately report your income.
6. How Does the Location of Real or Tangible Property Affect New York Source Income?
The location of real or tangible property is a primary factor in determining New York source income. Income derived from property located within New York State is generally considered New York source income.
Income, gains, losses, and deductions from real or tangible personal property located in New York State are included in New York source income. This includes:
- Rental Income: Income from renting out property in New York.
- Sale of Property: Gains or losses from the sale of real estate or tangible personal property located in New York.
For example, if you own a rental property in New York City but live in Austin, the rental income you receive is considered New York source income and is taxable in New York.
7. What Role Do Services Performed in New York State Play in Determining Source Income?
The location where services are performed is a critical factor in determining New York source income. Compensation for services performed within New York State is generally considered New York source income, regardless of where the payment is made.
If you perform services in New York State, the compensation you receive is considered New York source income. This includes:
- Wages and Salaries: Income from employment, regardless of whether you are a resident or nonresident.
- Professional Services: Fees for services provided by professionals such as consultants, lawyers, and accountants.
- Independent Contractor Income: Income earned as an independent contractor for services performed in New York.
For instance, if you are a consultant based in Austin who travels to New York to provide services to a client, the income you earn for those services is New York source income.
8. How Do Business, Trade, or Profession Activities in New York Impact Source Income?
If you conduct a business, trade, profession, or occupation in New York State, the income derived from those activities is generally considered New York source income.
Income from a business, trade, profession, or occupation carried on in New York State is included in New York source income. This includes:
- Sole Proprietorships: Profits or losses from a business operated as a sole proprietorship in New York.
- Partnerships: Your distributive share of partnership income from a partnership doing business in New York.
- S Corporations: Your share of income from an S corporation doing business in New York.
- Limited Liability Companies (LLCs): Income from an LLC operating in New York, depending on how the LLC is taxed (as a sole proprietorship, partnership, or corporation).
Whether you’re operating a small business or a large corporation, understanding how your activities in New York State affect your source income is crucial for tax compliance.
9. What Is the Significance of Partnership Income in Determining New York Source Income?
Your distributive share of partnership income or gain derived from New York State sources is considered New York source income. This applies to both general and limited partners.
If you are a partner in a partnership that conducts business in New York State, your share of the partnership’s income or gain that is attributable to New York is considered New York source income. This is typically determined based on the partnership’s allocation methods.
- General Partners: Your share of the partnership’s income, gains, losses, and deductions is based on your partnership agreement.
- Limited Partners: Your share is also based on the partnership agreement, but your liability is generally limited to your investment.
Accurately reporting your partnership income is essential for tax compliance. Understanding the partnership agreement and allocation methods is crucial for determining your New York source income.
10. How Do Estate or Trust Income and Gains Factor into New York Source Income?
If you are a beneficiary of an estate or trust, your share of New York State estate or trust income or gain is considered New York source income. This includes income from assets located in New York or activities conducted within the state.
If you are a beneficiary of a New York estate or trust, your share of the estate or trust’s income or gain that is attributable to New York is considered New York source income. This includes income from:
- Real Property: Rental income or gains from the sale of real estate in New York.
- Tangible Personal Property: Income from tangible personal property located in New York.
- Business Activities: Income from a business operated by the estate or trust in New York.
Properly accounting for estate or trust income is important for both the estate or trust and its beneficiaries. Consulting with a tax advisor can help ensure accurate reporting.
11. What Are the Tax Implications of New York State Lottery Winnings for Nonresidents?
New York State Lottery winnings have specific tax implications, especially for nonresidents. Understanding these rules is crucial if you win the lottery while not residing in New York.
If you are a nonresident and win the New York State Lottery, the winnings are considered New York source income if the total proceeds of the prize are more than $5,000 (see Publication 140-W). This means that New York State will tax those winnings.
- Reporting Requirements: You must report the lottery winnings on your New York State income tax return.
- Withholding: New York State will withhold taxes from your lottery winnings, and you will receive a Form W-2G to report the income and withholding.
Even if you are not a resident of New York, winning the lottery in New York can create a tax obligation. Proper planning and reporting are essential.
12. How Does the Sale of Cooperative Housing Shares Affect New York Source Income?
The sale of shares in a cooperative housing corporation can have specific tax implications for nonresidents, particularly if the cooperative is located in New York.
Any gain from the sale, transfer, or other disposition of shares of stock in a cooperative housing corporation in connection with the grant or transfer of a proprietary leasehold, when the real property comprising the units of the cooperative housing corporation is located in New York State, is considered New York source income.
- Location Matters: The key factor is the location of the real property underlying the cooperative. If it’s in New York, the gain is taxable in New York.
- Reporting the Sale: You must report the sale on your New York State income tax return and pay any applicable taxes.
If you are considering selling shares in a New York cooperative, it’s wise to consult with a tax professional to understand the tax implications.
13. What Happens If You Receive Income Related to a Prior Business in New York?
Even if you no longer conduct business in New York, income you receive related to a prior business, trade, profession, or occupation in the state can still be considered New York source income.
Income you receive related to a business, trade, profession, or occupation previously carried on in New York State, including but not limited to covenants not to compete and termination agreements, is considered New York source income (see TSB-M-10(9)I).
- Covenants Not to Compete: Payments received for agreeing not to compete with a former business in New York are taxable in New York.
- Termination Agreements: Payments received as part of a termination agreement related to a former business in New York are also taxable in New York.
This rule ensures that income tied to past activities in New York is appropriately taxed, even if you are no longer a resident or conducting business in the state.
14. How Is Income from a New York S Corporation Treated for Nonresident Shareholders?
If you are a nonresident shareholder in a New York S corporation, certain income items are considered New York source income, even if you don’t live in New York.
As a nonresident shareholder of a New York S corporation, the following income items are considered New York source income:
- Installment Obligations: Any gain recognized on the receipt of payments from an installment obligation where the S corporation has distributed an installment obligation under IRC section 453(h)(1)(A) to the shareholders.
- Deemed Asset Sale: Any gain recognized on the deemed asset sale where the S corporation has made an election under IRC section 338(h)(10).
- Installment Sale Contract Payments: Any income or gain recognized on the receipt of payments from an installment sale contract entered into when the S corporation was subject to tax in New York, even if the S corporation terminates its taxable status in New York (see TSB-M-10(10)I).
These rules ensure that income from S corporations operating in New York is taxed appropriately, even if the shareholders are nonresidents.
15. What Types of Retirement Income Are Exempt from New York Source Income?
Certain types of retirement income are specifically exempt from New York source income, providing relief for retirees who may have earned the income while working in New York.
The following types of retirement income are not considered New York source income:
- Pension Plans: Income from pension plans described in section 114 of Title 4 of the U.S. Code (see Publication 36).
- Annuities and Pensions: Income from annuities and pensions that meet the New York State definition of an annuity, unless the annuity is employed or used as an asset of a business in New York State.
This exemption provides significant tax benefits for retirees who may have worked in New York but now reside elsewhere.
16. How Are Interest, Dividends, and Gains from Intangible Property Handled?
Generally, interest, dividends, and gains from the sale or exchange of intangible personal property are not considered New York source income unless they are connected to a business, trade, profession, or occupation carried on in New York State.
Interest, dividends, or gains from the sale or exchange of intangible personal property are not considered New York source income unless they are part of the income you received from carrying on a business, trade, profession, or occupation in New York State.
- Investment Income: If you simply hold investments and receive interest or dividends, that income is generally not taxable in New York unless it’s related to a business you run in the state.
- Business-Related Income: If the intangible property is used in your New York business, the income generated is considered New York source income.
This rule helps distinguish between passive investment income and income that is actively generated through business activities in New York.
17. What About Gambling Winnings Other Than Lottery Winnings?
Gambling winnings, other than lottery winnings exceeding $5,000, are generally not considered New York source income unless you are engaged in the business of gambling in New York State.
Your gambling winnings, other than lottery winnings described earlier, are not considered New York source income unless you are engaged in the business of gambling and you carry on that business in New York State.
- Casual Gambling: If you occasionally gamble and win, those winnings are generally not taxable in New York unless you are a professional gambler.
- Professional Gambling: If you are a professional gambler and conduct your business in New York, your winnings are considered New York source income.
This rule distinguishes between casual gamblers and professional gamblers for tax purposes.
18. Are There Any Special Rules for Military Personnel and Their Spouses?
Yes, there are special rules for military personnel and their spouses that can affect their New York source income. These rules are designed to provide tax relief for those serving in the military.
Compensation you received for active service in the United States military is not considered New York source income. Additionally, income you earned in New York State as a military spouse may also be exempt (see TSB-M-10(1)I).
- Military Spouses Residency Relief Act: This act provides relief for military spouses who may be working in New York but are not residents of the state.
- Active Duty Pay: Active duty pay for military personnel is generally not taxable in New York.
These rules help ease the tax burden on military families who may be stationed in or near New York State.
19. How Is Income from Interstate Carriers Treated?
Compensation received from interstate carriers, such as rail, motor, and air carriers, is subject to specific rules regarding New York source income.
- Interstate Rail and Motor Carriers: Compensation you received from an interstate rail carrier, interstate motor carrier, or an interstate motor private carrier for regularly assigned duties performed in more than one state is not considered New York source income.
- Interstate Air Carriers: Compensation you received from an interstate air carrier is not considered New York source income if 50% or less of that compensation is earned in New York State.
These rules acknowledge the multi-state nature of the work performed by employees of interstate carriers and provide a specific threshold for determining New York source income.
20. What If You Perform Duties on a Vessel Operating in Multiple States?
If you perform duties on a vessel operating in multiple states, your compensation may be subject to specific rules regarding New York source income.
Compensation paid to you is not considered New York source income if:
- You are engaged on a vessel to perform assigned duties in more than one state as a pilot licensed under section 7101 of Title 46 of the U.S. Code.
- You perform regularly assigned duties while engaged as a master, officer, or crewman on a vessel operating on the navigable waters of more than one state.
These rules recognize the unique circumstances of maritime workers who may cross state lines as part of their regular duties.
21. How Can Income Partners Help You Navigate New York Source Income?
Navigating the complexities of New York source income can be challenging, but Income Partners is here to help. Whether you’re based in Austin, TX, or elsewhere, understanding these rules is crucial for tax compliance and strategic business planning.
Income Partners offers a range of services to help you understand and manage your New York source income:
- Expert Guidance: We provide expert guidance on the rules and regulations surrounding New York source income, helping you understand your tax obligations.
- Strategic Planning: We help you develop strategies to minimize your tax burden while maximizing your business opportunities in New York.
- Partnership Opportunities: We connect you with potential partners in New York, helping you expand your business and increase your income.
- Compliance Assistance: We assist you in complying with New York tax laws, ensuring you file the correct forms and pay the appropriate taxes.
By partnering with Income Partners, you can gain the knowledge and resources you need to succeed in the New York market.
22. Where Can You Find More Information and Resources on New York Source Income?
To further your understanding of New York source income, consider exploring the following resources:
- New York State Department of Taxation and Finance: Visit the official website for the latest tax laws, regulations, and publications.
- Tax Bulletins and Memoranda: Review Tax Bulletins (TB) and Tax Service Memoranda (TSB-M) for detailed guidance on specific topics.
- Publications: Consult publications such as Publication 36, General Information for Senior Citizens and Retired Persons, and Publication 140-W, FAQs: New York State Lottery Winners-What Are My Tax Responsibilities for New York State?
- Tax Professionals: Consult with a qualified tax professional who specializes in New York State taxes for personalized advice.
- Income-Partners.net: Explore our website for articles, guides, and resources on partnership opportunities and tax strategies. Address: 1 University Station, Austin, TX 78712, United States. Phone: +1 (512) 471-3434.
By utilizing these resources, you can stay informed and make informed decisions about your New York source income.
23. How Does the Military Spouses Residency Relief Act Impact New York Source Income?
The Military Spouses Residency Relief Act (MSRRA) provides significant tax relief for military spouses who may be working in New York but are not residents of the state. Understanding this act is crucial for military families stationed in or near New York.
Under the MSRRA (see TSB-M-10(1)I), a military spouse may be exempt from New York income tax if:
- The service member is stationed in New York but is a resident of another state.
- The spouse is in New York solely to be with the service member.
- The spouse maintains residency in the same state as the service member.
If these conditions are met, the military spouse may not be required to pay New York income tax on their earnings in the state. This can result in significant tax savings for military families.
24. How Do Covenants Not to Compete Affect New York Source Income for Nonresidents?
Covenants not to compete can have specific tax implications for nonresidents who previously conducted business in New York. Understanding these rules is essential if you receive payments for agreeing not to compete with a former business.
Payments you receive for agreeing not to compete with a former business in New York are considered New York source income, even if you are no longer a resident of the state. This is because the payments are tied to your prior business activities in New York.
- Taxable Income: These payments are taxable in New York and must be reported on your New York State income tax return.
- Consultation: It’s wise to consult with a tax professional to ensure you are properly reporting and paying taxes on these payments.
If you have entered into a covenant not to compete with a former business in New York, be sure to understand the tax implications and properly report the income.
25. What Are the Implications of Termination Agreements on New York Source Income?
Termination agreements can also have specific tax implications for nonresidents who previously conducted business in New York. Understanding these rules is essential if you receive payments as part of a termination agreement.
Payments you receive as part of a termination agreement related to a former business in New York are considered New York source income, even if you are no longer a resident of the state. This is because the payments are tied to your prior business activities in New York.
- Taxable Income: These payments are taxable in New York and must be reported on your New York State income tax return.
- Documentation: Be sure to keep accurate records of the termination agreement and the payments you receive.
If you have entered into a termination agreement related to a former business in New York, consult with a tax professional to ensure you are properly reporting and paying taxes on these payments.
26. What Recent Changes or Updates Should You Be Aware Of Regarding New York Source Income?
Staying informed about recent changes and updates to New York tax laws is crucial for accurate compliance and effective tax planning.
New York tax laws and regulations are subject to change, so it’s important to stay up-to-date on the latest developments. Here are some ways to stay informed:
- New York State Department of Taxation and Finance Website: Regularly check the official website for announcements, updates, and new publications.
- Tax Professional: Consult with a tax professional who stays informed about changes in New York tax laws.
- Professional Organizations: Follow professional organizations and publications that provide updates on tax law changes.
By staying informed, you can ensure that you are complying with the latest tax laws and regulations and that you are taking advantage of any available tax benefits.
27. What Common Mistakes Should You Avoid When Calculating New York Source Income?
Avoiding common mistakes when calculating New York source income is essential for accurate tax reporting and compliance.
Here are some common mistakes to avoid:
- Incorrect Residency Status: Misclassifying your residency status (resident, nonresident, or part-year resident) can lead to incorrect calculations.
- Failure to Allocate Income: Failing to properly allocate income between New York and other states can result in overpayment or underpayment of taxes.
- Missing Deductions: Overlooking eligible deductions can increase your tax liability.
- Incorrect Forms: Filing the wrong tax forms can lead to processing delays or penalties.
- Lack of Documentation: Failing to keep adequate records and documentation can make it difficult to substantiate your calculations.
By avoiding these common mistakes, you can ensure that you are accurately calculating and reporting your New York source income.
28. How Can You Optimize Your Tax Strategy Related to New York Source Income?
Optimizing your tax strategy related to New York source income can help you minimize your tax liability and maximize your financial benefits.
Here are some strategies to consider:
- Maximize Deductions: Take advantage of all eligible deductions to reduce your taxable income.
- Tax Credits: Explore available tax credits, such as credits for business investments or job creation.
- Proper Allocation: Ensure that you are properly allocating income between New York and other states to avoid double taxation.
- Retirement Planning: Utilize retirement plans to defer income and reduce your current tax liability.
- Business Structure: Choose the right business structure (sole proprietorship, partnership, S corporation, etc.) to minimize your tax burden.
By implementing these strategies, you can optimize your tax situation and achieve your financial goals. Income Partners can assist you in developing a customized tax strategy that meets your specific needs.
29. What Role Does Residency Play in Determining New York Source Income Taxation?
Residency is a primary factor in determining how your income is taxed in New York. Your residency status (resident, nonresident, or part-year resident) determines which income is subject to New York tax.
- Residents: New York residents are taxed on all of their income, regardless of where it is earned.
- Nonresidents: Nonresidents are only taxed on income derived from New York sources.
- Part-Year Residents: Part-year residents are taxed on all income earned during the period they were residents of New York and on New York source income earned during the period they were nonresidents.
Understanding your residency status and its impact on your tax liability is crucial for accurate tax planning and compliance.
30. Can You Provide Examples of New York Source Income Scenarios for Different Professions?
To illustrate how New York source income works, here are some examples for different professions:
- Consultant: A consultant based in Austin, TX, who provides services to a client in New York for two weeks would have to pay New York source income on the wages earned during those two weeks.
- Real Estate Investor: A real estate investor residing in Texas owns a rental property in New York City. The rental income received from that property is considered New York source income and is taxable in New York.
- Sales Representative: A sales representative who lives in New Jersey but makes sales in New York would need to declare New York source income based on the sales commissions earned from New York clients.
- Software Developer: A software developer living in California works remotely for a New York-based company. All income earned while performing work for the New York company is considered New York source income.
These examples highlight the various ways that income can be considered New York source income, depending on the profession and the location of the work or assets.
Understanding New York source income is vital for businesses and individuals seeking to expand and build partnerships, especially when bridging opportunities between states like Texas and New York. At income-partners.net, we are dedicated to providing the resources and expertise needed to navigate these complexities, ensuring compliance and maximizing your potential for income growth. By leveraging our insights and strategic guidance, you can confidently tap into the lucrative New York market. Contact us today to explore partnership opportunities and discover how we can help you achieve your business goals.
FAQ: New York Source Income
1. What Is New York Source Income?
New York source income is the income earned by nonresidents, part-year residents, estates, and trusts that is taxable by New York State, including income from real property, services performed, or businesses conducted in the state.
2. What types of income are excluded from New York source income for nonresidents?
Excluded income includes pension plans, annuities (unless used in a New York business), interest, dividends, and gains from intangible property (unless part of a New York business), gambling winnings (excluding lottery winnings over $5,000), and compensation for active U.S. military service.
3. How is New York source income calculated for part-year residents?
For part-year residents, New York source income is the sum of all income reported on the federal return for the New York State resident period plus any New York source income for the nonresident period.
4. What are special accruals, and how do they affect New York source income?
Special accruals are adjustments made to income when you change residency status, ensuring income is properly allocated to the correct period, whether you were a resident or nonresident.
5. Which tax forms do you need to file if you have New York source income?
Residents typically file Form IT-201, while nonresidents and part-year residents file Form IT-203 to report New York source income.
6. How does the location of real or tangible property affect New York source income?
Income, gains, losses, and deductions from real or tangible personal property located in New York State are included in New York source income.
7. What role do services performed in New York State play in determining source income?
Compensation for services performed within New York State is generally considered New York source income, regardless of where the payment is made.
8. How do business, trade, or profession activities in New York impact source income?
If you conduct a business, trade, profession, or occupation in New York State, the income derived from those activities is generally considered New York source income.
9. What is the significance of partnership income in determining New York source income?
Your distributive share of partnership income or gain derived from New York State sources is considered New York source income, applying to both general and limited partners.
10. What are the tax implications of New York State Lottery winnings for nonresidents?
If you are a nonresident and win the New York State Lottery, the winnings are considered New York source income if the total proceeds of the prize are more than $5,000.
