2020 Forms corrections and changes (posted in 2020)

1. On page 2, 1st column, disregard the Note under the Interest you paid section.
2. On page 2, 2nd column, add the following to the end of the line 11 instructions:

Mortgage insurance premiums (regardless of whether federal Form 1098 was provided)

• If you claimed an itemized deduction for mortgage insurance premiums on your federal income tax return, include on line 11 the amount reported on your federal return.
  
  
• If you did not claim an itemized deduction for mortgage insurance premiums on your federal income tax return, compute the amount to include on line 11 of Form IT-196 as if you had, using federal instructions and guidance.

1. On page 2, 1st column, disregard the Note under the Interest you paid section.
2. On page 3, 1st column, add the following between the instructions for line 12 and line 14: 

Line 13 - Mortgage insurance premiums

• If you claimed an itemized deduction for mortgage insurance premiums on your federal income tax return, enter the amount from federal Schedule A, line 8d.
  
  
• If you did not claim an itemized deduction for mortgage insurance premiums on your federal income tax return, compute the amount to include on line 13 of Form IT-196 as if you had, using the 2019 instructions for federal Schedule A.

On page 18, 1st column, third sentence; replace either with any so it reads:

A withdrawal is nonqualified if any of the following apply:

On page 18, 1st column, add the following between the instructions for item 2 and the first Note:

3.  The withdrawal is used to pay the principal or interest on any qualified education loan [as defined in IRC section 221(d)] of the designated beneficiary or a sibling of the designated beneficiary.

4.  The withdrawal is used to pay expenses for fees, books, supplies, and equipment required for the participation of a designated beneficiary in an apprenticeship program.

On page 3, 2nd column, first sentence; replace either with any so it reads:

A withdrawal is nonqualified if any of the following apply:

On page 3, 2nd column, add the following between the instructions for item 2 and the first Note:

3.  The withdrawal is used to pay the principal or interest on any qualified education loan [as defined in IRC section 221(d)] of the designated beneficiary or a sibling of the designated beneficiary.

4.  The withdrawal is used to pay expenses for fees, books, supplies, and equipment required for the participation of a designated beneficiary in an apprenticeship program.

On page 2, middle of the right column, under Specific instructions, line 10, the page number referring to the tax table on Form ET‑706 should read page 6 and not page 4.

There are errors on page 2 of Form IT-215-I, Instructions for Form IT-215 Claim for Earned Income Credit.

Line 6, Worksheet A, Line 2 should read as follows (change is boldfaced):

2. Enter the amount, if any, from step 5, line 8 of the federal Form 1040 instructions for line 18a.

Line 7 should include an additional bullet as follows:

• received a Medicaid waiver payment that you excluded on your federal return and want to exclude from your earned income;

There is an omission on page 2 of Form IT-209-I, Instructions for Form IT-209 Claim for Noncustodial Parent New York State Earned Income Credit.

Line 14 should include an additional bullet as follows:

• received a Medicaid waiver payment that you excluded on your federal return and want to exclude from your earned income;

On page 13, 2^nd column, under the heading Section 210-A.5-a – Global intangible low-taxed Income, the line 44 instructions are changed to read:

Line 44 – If a GILTI inclusion amount under IRC § 951A is computed at the entity level and is reported in Part 1, enter 100% of GILTI in the Everywhere column. Do not include GILTI in the New York column.

If a GILTI inclusion amount is not computed at the entity level and is not reported in Part 1, do not include GILTI in the New York column or the Everywhere column.

On page 21, 1^st column, the line 44 instructions are changed to read:

Line 44 – If a global intangible low-taxed income (GILTI) inclusion amount under IRC § 951A is computed at the entity level, enter 100% of the GILTI amount in the Everywhere column.

If a GILTI inclusion amount is not computed at the entity level, do not include GILTI in the Everywhere column.

On page 2, 2nd column, the instruction as to how to claim the credit should read:

Important: You must submit Form IT-272 with your 2019 Form IT-201 to claim the college tuition credit or the college tuition itemized deduction.

On page 2, Schedule A, Part 2, line 27, changed line instruction for Schedule E line number to 66.

On page 5, Schedule E, line 65, added State death tax deduction.

On page 5, Schedule E, line 66, added new line number for schedule total.

On page 2, Schedule A, Part 2, line 27, changed line instruction for Schedule E line number to 66.

On page 5, Schedule E, line 65, added State death tax deduction.

On page 5, Schedule E, line 66, added new line number for schedule total.

On page 2, Schedule A, Part 2, line 27, changed line instruction for Schedule E line number to 66.

On page 5, Schedule E, line 65, added State death tax deduction.

On page 5, Schedule E, line 66, added new line number for schedule total.

On page 2, Schedule A, Part 2, line 29, changed line instruction for Schedule E line number to 68.

On page 3, Schedule D, more detailed instructions were added.

On page 5, Schedule E, line 67, added State death tax deduction.

On page 5, Schedule E, line 68, added new line number for schedule total.

The form now only includes information for dates of death from January 1, 2019 through and including December 31, 2019.

On page 2, Schedule A, Part 2, line 27, changed line instruction for Schedule E line number to 66.

On page 5, Schedule E, line 65, added State death tax deduction.

On page 5, Schedule E, line 66, added new line number for schedule total.

On page 4, in the right column, Example for Worksheet, the amount on line 7 should be $2,590,380 and the amount on line 8 should be $146,030.

On page 1, under the heading Line instructions, Part 2, section 1, lines 1 and 2, 3^rd sentence, the reference to line 54 should read as a reference to line 55.

See Impact of Changes to the Internal Revenue Code (IRC) on the 2019 New York State Corporation Tax Returns for additional guidance regarding this form correction.

On page 1, under the heading Filing requirements, the following instructions are added immediately above the Note:

If the S corporation is a partner in a partnership(s) and the distributive share of ordinary business income (loss) from that partnership(s), which is included in the S corporation’s ordinary business income (loss), takes into account changes made to the Internal Revenue Code (IRC) after March 1, 2020, the S corporation must issue to each shareholder a statement providing the total amount by which the shareholder must adjust his or her share of the S corporation’s ordinary business income (loss) to account for the Article 22 decoupling (see Part WWW of Chapter 58 of the Laws of 2020) for that partnership(s). Generally, the amount to provide to the shareholders is computed as follows:

Subtract the amount(s) reported in box 1 of the federal Schedule K-1(s) issued to the S corporation by the partnership(s), (as that amount reflects changes to the IRC after March 1, 2020) from the amount reported to the S corporation by the same partnership(s) on Form IT-204-CP, New York Corporate Partner’s Schedule K-1, line 44 (ordinary business income [loss]), (as that amount would have been computed prior to any changes made to the IRC after March 1, 2020). Provide to each shareholder his or her pro rata share of this difference.

See Impact of Changes to the Internal Revenue Code (IRC) on the 2019 New York State Corporation Tax Returns for additional guidance regarding this form correction.

On page 4, 2^nd column, immediately below A-510, add a new addition modification code A-511 to read:

A-511  Amount of increase in interest deduction allowed pursuant to IRC section 163(j)(10)(A)(i) (CT-3 filers only) – Enter the increase in interest deduction included in the computation of your FTI attributable to the use of 50% of adjusted taxable income rather than 30%.

On page 9, in the Addition modifications table, modification number A-901, Beneficiary’s share of fiduciary adjustment, in the CT-33 column, the X is removed and placed in the CT-34-SH column.

On page 10, in the Subtraction modifications table, modification number S-605, in the Description column, IRC section 956(a) inclusion amount should read IRC section 965(a) inclusion amount.

See Impact of Changes to the Internal Revenue Code (IRC) on the 2019 New York State Corporation Tax Returns for additional guidance regarding this form correction.

On page 4, 1^st column, immediately below the A-510 Note, add a new addition modification code A-511 to read:

A-511  Amount of increase in interest deduction allowed pursuant to IRC section 163(j)(10)(A)(i) (CT-3-A filers only) – Enter the increase in interest deduction included in the computation of your FTI attributable to the use of 50% of adjusted taxable income rather than 30%.

Note: For this addition modification, do not report any amounts in columns A through D. In column E, report the total amount only for all members of the combined group as combined group members do not individually report this modification for this year.

On Form MT-203-I (10/20), Instructions for Form MT-203, under the heading Instructions for Form MT-203-S, the definition for Wholesale price has changed. As of October 1, 2020, the definition of wholesale price for tobacco products has been revised to be the price for which the tobacco products are sold to a distributor, before the allowance of any discount, trade allowance, rebate or other reduction, and including the federal excise taxes paid by the manufacturer or other person. The invoice received by a distributor for its purchase of a tobacco product is presumptive evidence of the wholesale price of the tobacco product.

The industry standard adjustment ratio can no longer be used as an alternative computation of the wholesale price on tobacco products possessed for sale in New York State on or after October 1, 2020. 

Refer to the definition of Wholesale price under Definitions on Form MT-203-I, page 1, when completing the schedules on Form MT-203-S. For more information, see TSB-M-20(1)M, Summary of Alcoholic Beverages Tax, Cigarette and Tobacco Products Tax, and Sales and Use Tax Changes Enacted in the 2020-2021 Budget Bill.