NYC 1127

[InnovativeTax]

I'm sure I can't be the only one with this!!!

Has anyone rec'd letters from personal tax clients about eliminating the School Tax Credit(s) on the 1127 Schedule B, Lines A! and A2

Getting letters all over the place!

[ljr]

YES, and I cannot figure out why. I got one or two calls regarding the NYS return regarding the school tax credit and now a few on the 1127 and the difference in refund is the school tax credit. I can't find any information on why though. 

I don't know if this is a NYC issue or a software issue. I'm leaning to NYC. . . . . 

[InnovativeTax]

Yeah. I agree! I have already have an escalated case with ProSeries to look into this, but I'm sure NYS has to say something about this! Check all instructions etc etc and see nothing for an explanation?

Already got 3 more letters from clients this AM. This will definitely hit the news!

Let's make a deal....we both promise to tell each other if we hear anything further?

Thanks!

[InnovativeTax]

Furthermore...I don't think it's a ProSeries thing.

Had clients tell me their co-workers (non-clients) also received the same correspondence!

[InnovativeTax]

Sorry...previous post correction......NYC will have something to say about this!

[RyanB]

From the NYC Dept of Finance:

"You can no longer claim the New York City School Tax Credit on lines A1 and A2 of Schedule B on the NYC-1127.
The STAR credit applies to New York State income taxes. It does not apply to New York City income taxes."

Which is ridiculous considering the form instructions still tell you to calculate it as if the filer was a resident of the city. 

[InnovativeTax]

Yeah...several clients forwarded me the letter, as well.

I would keep watching the news (local to NYC) this is going to get saucy!

Change the law after instructions for preparation outline something different?

To be continued.....

[Julie0031]

I had a client forward me a letter from NYC as well.  the letter claims that the STAR credit has not been allowable since 2016.  Besides the fact that ProSeries automatically did the calculations I did not see anything in the NYC-1127 instructions to substantiate this claim. 

I'm going to contact Intuit. 

Any suggestions of how to handle this? 

Thanks

[RyanB]

On the notice, it does give an email (1127help@finance.nyc.gov) which I kindly asked for the legislature that shows the 2016 change. I also made sure to include the fact the form instructions should reflect the change they are stating. 

I like to be optimistic, but I am sure my email is sitting in the inbox with the thousands of others that have been sent. 

I am a proconnect user and the calculation is automatic for our system as well. Very messy situation.

[ljr]

I'm spending my time fielding calls on this letter. I'm trying to decide best course of action on the payment due requests. I'm telling them to pay it to stop any interest and penalties accruing while we get this figured out and hope that the state/city is wrong and will then have to reimburse them.