Common questions about NY Form IT-205 and IT-205-A in ProConnect Tax

When preparing a NY resident estate or trust with one nonresident beneficiary and no income from New York sources, the instructions for Form IT-205 indicate Form IT-205-A shouldn't be included with the return filing.

Why is this form generated, along with a statement on Form IT-205, Schedule C, Share of New York Fiduciary Adjustment "Income distributed to nonresident beneficiaries consists only of income that is not taxable to nonresident individuals?"

New York Form IT-205-A is required for electronic filing. If it isn't included with the return when attempting to e-file, the return won't meet this business rule requirement due to the fact that page 1 amounts must include amounts from the IT-205-A and Schedule C. These forms are required, even when blank.

This form is not required when preparing a conventional paper filed return.

Table of contents:

Where can I enter partially tax exempt dividend income for a Fiduciary K-1 on the NY IT-205?

To enter partially tax exempt dividend income for a  K-1 on the NY IT-205:

1. Go to Input Return  ⮕ State ⮕ Modifications ⮕ NY Modifications
2. Enter a Description for the adjustment
3. Enter the amount of the adjustment in Fiduciary adjustment

Note:  This entry will appear on NY IT-205, Schedule B -- positive amounts flow to line 65 and negative amounts flow to line 68.

Back to Table of Contents

How do I generate an amount on IT-205, line 64 - Income taxes deducted on federal fiduciary return?

ProConnect Tax generates an amount on IT-205, line 64 based on the state, local, and foreign income taxes including unincorporated business taxes deducted on the federal fiduciary return, line 11.

To override the amount calculated on NY IT-205, line 64:

1. Go to Input Return ⮕ State ⮕ Modifications ⮕ NY Modifications
2. Select General in the upper right corner.
3. Scroll down to the New York Additions section
4. Enter the amount in A-201 Personal income taxes and unincorporated business taxes deducted in determining federal AGI [Override]

Back to Table of Contents

How do I generate New York City tax and mark NYC residency status on page 2, Schedule C, Line C of NY Form IT-205? 

To mark residency status for NYC on IT-205: 

1. Go to Input Return ⮕ General ⮕ Miscellaneous Information
2. Select the NY tab.
3. Scroll down to the New York Miscellaneous section
4. Enter a 4 or 5 in NYC: 4=full year, 5=part-year

This entry checks the appropriate box on Form IT-205, page 2 and determines the need to file Form IT-205-A for a New York City non-resident or part-year resident trust.

Back to Table of Contents

A NY IT-205 has pension income flowing to Line 68. It is necessary to adjust the amount on the line to match what the entity is really able to exclude. Is this possible?

1. Go to Input Return ⮕ State ⮕ Modifications ⮕ NY Modifications
2. Select General in the upper right corner.
3. Scroll down to the New York Subtractions section
4. Enter an amount in S-106 Pension and annuity income exclusion (-1=none) [Override] this will override the amount of the subtraction on the IT 225, and the total subtractions will then flow to line 68 of the IT 205.

Back to Table of Contents

Where do I enter Trustee information to override IT-205 Question F?

To override the address for NY IT-205, Question F:

1. Go to Input Return ⮕ General ⮕ Miscellaneous Information
2. Select the NY tab
3. Scroll down to the New York Miscellaneous section
4. In the input grid, enter the Executor or trustee name, Street, City, State, Zip Code, and SSN or EIN

Back to Table of Contents

Why are the beneficiaries not showing on the New York (NY) Form IT-205, Page 2, Schedule C?

The name and address of the beneficiaries are not going to show on the IT-205, unless there is something distributed to the beneficiaries. Be sure that amounts or percentages have been entered:

1. Go toInput Return ⮕ Beneficiary/Grantor Info ⮕ 1041 Distributions
2. Select Distribution Percentages
3. Make any applicable entries in this screen.

Back to Table of Contents

When there is an overpayment on the IT-205, the program is not applying any of the refund to the next year's estimated tax.

Estates (and any trusts that were treated as owned by the decedent and that received the residue of a decedent’s estate under the will, or if no will is admitted to probate, were primarily responsible for paying debts, taxes, and other expenses of administration) are exempt from paying estimated income tax payments for the tax year of the decedent’s death and the following tax year.

1. Go to Input Return ⮕ Payments, Penalties, Extensions ⮕ Estimates (1041-ES)
2. Select the Next Yr. Estimates tab
3. In the Apply overpayment to 2024 drop down input under the State column, make the applicable input. If you don't want any estimates to calculate, choose 7=Apply entire refund, no estimates
4. You could also enter the amount in Amount of overpayment to apply to 2024 under the State column to apply a specific amount to next year's estimated tax.

Back to Table of Contents