If the IT-229 is filled in correctly, it flows to the IT-201-ATT line 18, not the IT-196

NYS directions say that if the credit is deducted on IT 201 then it has to be subtracted from the real estate taxes claimed on IT196

NYS instructions for IT 196 state "If you claimed the real property tax relief credit (form IT229) THEN you must reduce the amount of real estate taxes reported on Line 6 by the amount of the property tax relief credit claimed."

I saw that the credit went to IT201 but there is no subtraction on the IT196

I looked at all of the forms, and neither NYS or Intuit has made a place for that to be added back. I agree with you. Hopefully there is an update that will take care of this.

Any IT-229 credit automatically subtracts from the real estate tax on IT-196.

Beware though, of all the clients I e-filed NYS with this credit, not one of them has been issued a refund and in every case the NYS website Where's My Refund says the numbers don't match. Anyone else have this issue?

Any update on this?

ProSeries is working fine. It's NYS. As of yesterday, 2/23/22, they are 'reviewing' all my e-filed returns that include the credit from IT-229. Not one refund has been issued as of yet.