What is the Section 1127 Waiver?

Under Section 1127 of the City Charter, if you are a City employee who lives outside the City and you were hired after January 4, 1973, as a condition of employment you agreed to pay to the City an amount equal to a City personal income tax on residents, computed and determined as if you were a resident of the City.

The amount deducted from your pay for the Section 1127 Waiver shows up under City Waiver on your pay statement. Employees who had a Section 1127 Waiver withheld from their pay will receive an 1127 Statement as well as a W-2. If you need a duplicate 1127 Statement, you can request it on the W-2 Duplicate Request form. In Section Four of the W-2 Form, check 1127 waiver.

Section 1127 of the New York City Charter does not apply to you if you work for the Department of Education, City University of New York, District Attorneys Offices, or New York City Housing Authority. Also, it does not apply if you are a NYC Housing Authority or Transit Police transferred into the New York Police Department.