How to Fill Out IT-2104: Allowances, NYC, and Extra Withholding

To fill out Form IT-2104, enter your name, address, and Social Security Number at the top, pick one of the two filing-status boxes, work through the attached worksheet to calculate your New York State and Yonkers allowances (and New York City allowances if you live there), transfer those totals to Lines 1 and 2 of the certificate, add any extra per-paycheck withholding on Lines 3 through 5 if you need it, then sign and give the form to your employer’s payroll department. The form tells your employer how much New York State, New York City, and Yonkers income tax to withhold from each paycheck, and it uses an allowance system that no longer exists on the federal W-4, so you have to complete it separately.¹

You can download the form and instructions from the New York State Department of Taxation and Finance website or ask your employer for a copy.² Skipping it is risky. If your most recent W-4 was filed for 2020 or later, your employer may default to zero New York allowances, which typically over-withholds. If your W-4 predates 2020, the employer may carry the old federal allowance count into New York, which can leave you over- or under-withheld because state and federal rules diverge.

Before You Start

The top of the certificate wants your full legal name, home address, and Social Security Number. Your address decides more than mail delivery. If it is inside New York City or Yonkers, you owe local income tax on top of state tax, and the form has to capture that.

Picking a Filing Status

The form gives you two boxes: “Single or Head of household” and “Married, but withhold at higher single rate.”³ That is narrower than the five statuses on your actual New York return (Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Surviving Spouse).⁴ If you are married and either both of you work or you have significant non-wage income, checking the higher single rate box withholds more per paycheck and is often the safer call.

What Allowances Actually Do

Each allowance reduces the amount of income your employer treats as taxable for withholding. More allowances, smaller withholding; fewer allowances, larger withholding. You are aiming for the total withheld across the year to land close to your actual tax bill.

One rule surprises people: you cannot claim an allowance for yourself, and if you are married you cannot claim one for your spouse.¹ Allowances here come only from dependents, specific credits, deductions, and a few other adjustments.

Working Through the Worksheet

The worksheet attached to the form calculates the number that goes on Line 1 of the certificate (state and Yonkers allowances) and Line 2 (New York City allowances, if applicable). Most employees only need Part 1.¹

Part 1: State and Yonkers Allowances

Part 1 walks you down a numbered list. Fill in each line that applies and leave the rest blank or zero.

Line 6. Dependents you expect to claim on your state return. Do not count yourself or your spouse.
Lines 7 through 9. Enter 1 for each credit you expect to claim: the college tuition credit (7), the household credit (8), and the real property tax credit (9).
Lines 10 through 12. Enter 3 for each credit you expect to claim: the child and dependent care credit (10), the earned income credit (11), and the Empire State child credit (12).
Line 13. If you will be a New York City resident for any part of the year, enter 2 for the NYC school tax credit.
Line 14. Allowances for any other state credits you qualify for, following the instructions for that line.
Line 15. If you file as head of household with only one job, enter 2.
Line 16. Estimate federal adjustments to income (deductible IRA contributions, for example), divide the total by $1,000, and drop any fraction.
Lines 17 and 18. Skip unless the situations covered by Parts 3 and 2 apply to you.
Line 19. Add Lines 6 through 18. This total goes on Line 1 of the certificate.

Part 2: Itemized Deductions

Only complete Part 2 if you plan to itemize on your New York return rather than take the standard deduction. Estimate your total New York itemized deductions (as calculated on Form IT-196), subtract the standard deduction for your filing status, and divide what remains by $1,000. The result goes on Line 18 of Part 1. If your itemized deductions are smaller than the standard deduction, enter zero.¹

The New York standard deduction is $8,000 for single filers, $16,050 for married filing jointly, $11,200 for head of household, and $16,050 for qualifying surviving spouses.⁵ Itemizing helps your withholding only if your deductions exceed those figures.

Part 3: Employer Compensation Expense Program

Complete Part 3 only if your employer participates in the Employer Compensation Expense Program and you expect wages above $40,000 from that employer. The calculation subtracts $40,000 from your expected annual wages, multiplies the remainder by 5%, and then adjusts further per the instructions. If wages from that employer are $40,000 or less, skip Part 3 entirely.¹

Part 4: New York City Allowances

New York City residents pay a separate graduated city income tax with rates from 3.078% to 3.876%. Part 4 of the worksheet calculates your city allowance number, which you write on Line 2 of the certificate.¹ You count as a New York City resident if your domicile is in the city, or if you keep a permanent home there for substantially all of the year and spend 184 days or more in the city during the tax year.⁶ Yonkers residents do not use Part 4; their allowances flow through Part 1 to Line 1, and Yonkers nonresidents who work in Yonkers still owe a separate nonresident earnings tax that the employer withholds.⁷

If You Work More Than One Job or Your Spouse Works

When you have more than one job at the same time, or both spouses work, claim all your allowances on the IT-2104 you give to your highest-paying employer, and claim zero on the certificates for every other job. For married couples, the higher earner claims the total; the lower earner claims zero.¹

At higher combined incomes, the instructions layer in extra adjustments:

Single or head of household with combined wages under $107,650: reduce the allowances on Line 1 (and Line 2, if applicable) by seven on the certificate you file with your higher-paying employer.
Single or head of household with combined wages between $107,650 and $2,263,265: use the charts in Part 6 to calculate an additional dollar amount and enter it on Line 3.
Married with combined wages of $107,650 or more: use the charts in Part 5 to calculate an additional dollar amount for Line 3.

If any of these produce a negative allowance number, put zero on Line 1 and use Line 3 to request additional withholding per pay period instead.¹

Adding Extra Withholding on Lines 3, 4, and 5

Lines 3, 4, and 5 let you ask your employer to withhold extra dollars each paycheck beyond what the allowance math produces. Line 3 covers state tax, Line 4 covers New York City, and Line 5 covers Yonkers.³ This is the right tool when you have income that isn’t in your paycheck: capital gains, rental income, freelance work, or large investment distributions.

To pick a number, estimate your total annual state or city tax liability, subtract what you expect to be withheld through allowances alone, and divide the shortfall by your remaining pay periods for the year. Rounding up is safer than rounding down. This works better than trying to squeeze the same result out of a lower allowance count, especially when your non-wage income is uneven.

Signing and Turning It In

Once you have transferred the worksheet totals to Lines 1 and 2 and filled in any extra amounts on Lines 3 through 5, sign and date the certificate. Your signature attests, under penalty of perjury, that the information is true and correct. Give the signed form to your employer’s payroll or human resources department. Do not send it to the state.

When to File a New One

The Department of Taxation and Finance recommends filing a new IT-2104 every year and whenever your personal or financial situation shifts.² Common triggers include marrying or divorcing, having a child, moving into or out of New York City or Yonkers, starting to itemize, or getting hit with a big balance due (or an unusually large refund) on your last return.¹ No specific statutory deadline forces you to update after a life change, but sooner is better.

Situations Where IT-2104 Isn’t the Right Form

Two situations use different paperwork. If you qualify to have no New York tax withheld at all, you file Form IT-2104-E instead, not the IT-2104. Group A eligibility requires meeting all three of these conditions: you are under 18, over 65, or a full-time student under 25; you had no New York income tax liability last year; and you expect none this year. Group B covers military spouses meeting Servicemembers Civil Relief Act conditions. The exemption expires each year (the 2026 certificate expires April 30, 2027), and if your situation changes and you expect to owe tax, you must revoke the exemption within 10 days and file an IT-2104.⁸

If you live outside New York State but work there, you file Form IT-2104.1 instead. On that form you certify nonresidency and estimate the percentage of your work performed inside New York (by days, time, miles, or similar). Your employer withholds only on that allocated share of your wages. Notify your employer within 10 days if your work pattern changes or you become a New York resident.⁶

Penalties for Overstating Allowances

Inflating your allowances to shrink withholding is not a low-risk shortcut. Under New York Tax Law, a statement on your withholding certificate that decreases the amount withheld without any reasonable basis carries a $500 civil penalty per false statement.⁹ The penalty is waived only if your total liability for the year ends up at or below your credits and payments. Deliberate fraud can trigger misdemeanor or felony charges.

An honest mistake still costs money. New York charges interest on underpayments at rates that reset quarterly; the income tax underpayment rate for the first quarter of 2026 is 9.5% per year.¹⁰ An underpayment penalty applies if your withholding and estimated payments fall below 90% of the current year’s liability or 100% of the prior year’s (110% if your New York adjusted gross income was over $150,000).¹¹ Careful worksheet math, plus Line 3 for any non-wage income, is the reliable way to stay clear of both.

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Department of Taxation and Finance. Instructions for Form IT-2104 Employee’s Withholding Allowance Certificate
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Department of Taxation and Finance. Tips and Reminders: Form IT-2104, Employee’s Withholding Allowance Certificate
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Department of Taxation and Finance. Form IT-2104 Employee’s Withholding Allowance Certificate
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Department of Taxation and Finance. Filing Status
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Department of Taxation and Finance. Standard Deductions
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Department of Taxation and Finance. Form IT-2104.1 New York State, City of New York, and City of Yonkers Certificate of Nonresidence and Allocation of Withholding Tax
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Department of Taxation and Finance. Frequently Asked Questions About Filing Requirements, Residency, and Telecommuting
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Department of Taxation and Finance. Form IT-2104-E Certificate of Exemption from Withholding Year 2026
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New York State Senate. New York Tax Law Section 685 – Additions to Tax and Civil Penalties
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Department of Taxation and Finance. Interest Rates: 1/01/2026 – 3/31/2026
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Department of Taxation and Finance. Interest and Penalties