Combat zone, qualified hazardous duty area, and contingency operations

Extension of time to file returns

The deadline for filing your New York State income tax return and paying your tax due, or filing an amended return to request a refund is automatically extended for at least 180 days* after the later of:

• the last day you are in a combat zone or serve in a contingency operation (or the last day the area qualifies as a combat zone or contingency operation); or
• the last day of hospitalization inside or outside New York State as a result of an injury you suffered while serving in a combat zone or contingency operation.

*In addition, any days of the filing period that were left when you entered the combat zone are added to the 180 days to find the last day allowed for timely filing your New York State income tax return or amended return.

If you qualify for an extension of time to file your return based on the above, be sure to enter special condition code C7 in the space provided on your tax return.

Example 1: You were deployed to an area designated as a combat zone on November 1, 2023. You left the combat zone on May 16, 2024. Generally, you would be required to file your 2023 New York State personal income tax return by April 15, 2024. However, because you were serving in a combat zone your filing due date is automatically extended 286 days (180 plus 106 additional days) after your last day in the combat zone. Accordingly, you would have had until February 26, 2025, to file your 2023 New York State income tax return and pay any tax due.

The 106 additional days (January 1, 2024, through April 15, 2024) are the number of days in the original filing period for a 2023 tax return that were left when you entered the combat zone. 

Example 2: You need to file an amended 2018 New York State return to claim a refund. You filed your original return and paid the tax due on the due date, April 15, 2019. Generally, you would be required to file an amended return within three years of the date that the original return was filed, or within two years of the date the tax was paid, whichever is later. Therefore, your amended 2018 New York State return would have been due no later than April 18, 2022¹. 

However, because you served in a combat zone from November 1, 2021, to August 4, 2022, the deadline for filing your amended 2018 New York return to claim a refund was extended to 349 days (180 plus 169 additional days) after your last day in the combat zone. Accordingly, you would have had until July 19, 2023, to file your amended 2018 return.

The 169 additional days (November 1, 2021, through April 18, 2022) are the number of days in the three-year period for filing a refund claim that were left when you entered the combat zone. 

¹April 15, 2022, is a holiday and April 16, 2022, and April 17, 2022, are on Saturday and Sunday; therefore, the due date is on the next business day.

Other extended actions

The extensions that apply to filing returns also extend the date for you or the department to perform the following actions: 

• Paying of personal income taxes and sales and use tax reportable on a personal income tax return.
• Filing a petition with the Division of Tax Appeals for a credit or refund, or for review by an administrative law judge or the Tax Appeals Tribunal.
• Allowing a credit or refund of income tax by the department.
• Filing a claim for credit or refund of income tax.
• Assessment of any income tax by the department.
• Giving or making any notice or demand by the department for the payment of any income tax.
• Collection by the department of any income tax due.
• Bringing suit by the department for any income tax due.

If the department takes any action covered by these provisions or you are selected for audit before learning that you are entitled to an extension, contact the department or your legal assistance office.

No penalties or interest will be imposed for failure to file a return or pay taxes during the extension period.

Your spouse and dependents are entitled to the same extensions with the following exception: the extension doesn’t apply for a tax year beginning more than two years after the date the area ceases to be a combat zone or contingency operation. 

If you are serving in a combat zone or contingency operation and are unable to sign your joint personal income tax return, your spouse may sign and file the return on your behalf if they have a power of attorney.

If your spouse does not have a power of attorney, they may still sign and file on your behalf. However, they must submit a signed statement with the return explaining that you are serving in a designated combat zone or a contingency operation and are therefore not available to sign the return. Additionally, your spouse must file a paper return and clearly write COMBAT ZONE on the top of the first page of the return.

This option is not available to you if you are filing separate returns.

The department will pay interest on refunds back to the original due date for returns filed after April 15, but on or before your extended due date.

Any income you received as a member of the armed services of the United States for service in an area designated as a combat zone is exempt from New York State, New York City, and Yonkers taxes. If you included any combat zone pay in your federal adjusted gross income, you are entitled to a New York subtraction modification for that income in calculating your New York adjusted gross income.

For more information see subtraction modification S-118 on IT-225-I, Instructions for Form IT-225 New York Modifications.

If a member of the armed forces dies while serving in a combat zone or due to injuries sustained while serving in a combat zone, no New York State tax (or applicable penalties) will be imposed for any tax year the decedent served in the combat zone. Additionally, the department will waive any unpaid tax or penalties for years prior to service in the combat zone.

If the deceased paid any tax while in the combat zone, the department will refund the full amount of the tax paid to the estate or the surviving spouse. If any tax was assessed but not paid, the department will cancel the assessments.

How to claim forgiveness

• For tax years that are not filed, file Form IT-201 or IT-203. Enter special condition code K2 in item G of Form IT-201, or item F of Form IT-203.
• To amend an already filed return, file Form IT-201-X or Form IT-203-X. Enter special condition code K2 in the space provided on the return. A separate return must be filed for each eligible year. 

If the provisions apply to a prior year’s tax that has been paid and the period for filing a claim for a refund is still open, the tax will be refunded. Generally, the period for filing an amended return claiming a refund of tax is three years from the time the return was filed or two years from the time the tax was paid, whichever is later. 

A statement showing the calculation of the decedent’s tax liability before any amount is forgiven and the amount that is to be forgiven should be included with any return or claim. For joint returns, see Joint returns.

Returns claiming a refund

You must include a certification from the Department of Defense (for example, Department of Defense Form DD 1300, Report of Casualty) with any returns claiming a refund.

The certification must include the deceased individual’s name and social security number, the date of injury, the date of death, and a statement that the individual died in a combat zone or due to injuries sustained while serving in a combat zone. If the certification has been received but there is not enough tax information to file a timely claim for refund, file the return or amended return with the information you do have. Include a statement saying that an amended claim will be filed as soon as the necessary tax information is available.

Joint returns

Only the decedent’s part of the tax liability is eligible for income tax forgiveness. To determine the decedent’s portion of the joint liability, allocate income, deductions and New York addition and subtraction modifications in the same manner they would have been allocated if the spouses had filed separate returns. Allocate wages and salaries to the spouse who performed the services and received the Form W-2. Allocate personal deductions, such as itemized deductions for mortgage interest and taxes, equally between the spouses unless there is evidence that shows a different allocation is appropriate. When calculating the total tax as if a separate return had been filed, allocate credits and other taxes, if any, in the same manner as they would have been allocated if the spouses had filed separate returns. Calculate the tax liability that is eligible for the refund as follows:

1. Calculate the decedent’s total tax as if a separate return had been filed.

2. Calculate the surviving spouse’s total tax as if a separate return had been filed.

3. Multiply the joint tax liability by a fraction, whose numerator is the amount in item 1 and whose denominator is the total of items 1 and 2.

The result of item 3 is the amount eligible for a refund. If you are unable to calculate the amount, you should include a statement of all income and deductions, indicating the part that belongs to each spouse. The department will determine the amount to be refunded.