CT-601: Claim for EZ Wage Tax Credit. (2024)
New York · NY DTF · Used for tax years 2024
Form CT-601 is used by corporations to claim the EZ Wage Tax Credit, including the ZEA Wage Tax Credit. It calculates the credit carried forward from the preceding tax year, the amount used for the current tax year, and the remaining carryforward.
Who files this form
Form CT-601 is for corporations claiming the Empire Zone (EZ) wage tax credit, including the Zone Equivalent Area (ZEA) wage tax credit. The form calculates the credit carried forward from the preceding tax year, the amount used in the current year, and the remaining carryforward.
If you are claiming the credit as a corporate partner, mark an X in box A.
What you'll need
Have Form CT-3 or CT-3-A ready, since CT-601 must be filed with one of those returns. You will also need these details to complete CT-601:
- Corporation’s legal name and employer identification number.
- Tax period beginning and ending dates.
- Name of each EZ or ZEA and its zone designation date.
- Wage tax credit carryforward from the preceding tax year.
- Current year’s tax, other credits claimed before the wage tax credit, and the appropriate minimum tax.
For multiple zones, complete Schedule C and attach additional sheets if needed.
How to file
File Form CT-601 with Form CT-3 or CT-3-A.
- Enter the corporation’s identifying information and tax period.
- Complete Schedule A to calculate the credit carried forward and available for the current year.
- Complete Schedule B to calculate the credit used and carried over.
- Complete Schedule C if you have multiple zones.
The supplied form text does not provide a mailing address or e-filing instructions.
Common mistakes
- Leaving the tax period blank. All filers must enter beginning and ending dates.
- Missing box A when claiming the credit as a corporate partner.
- Omitting Schedule C when reporting multiple zones. Attach additional sheets if needed.
- Filing CT-601 without Form CT-3 or CT-3-A. The form says to file them together.
- Overlooking the instruction references. The form directs filers to the instructions for several lines and when claiming a carryforward from more than one entity. Those instructions were not supplied here.
Questions people ask
Does CT-601 include the ZEA wage tax credit?
Yes. The form covers the EZ wage tax credit, including the ZEA wage tax credit.
What if I have more than one zone?
Complete Schedule C with each EZ or ZEA name and its zone designation date. Attach additional sheets if needed.
How does the form calculate the current-year credit limitation?
Line 3 is 50% of the tax on line 2. Line 8 is line 6 minus the appropriate minimum tax on line 7. Line 9 is the lesser of line 3 or line 8. The form directs you to the instructions if you are claiming a carryforward from more than one entity.
How is the remaining carryforward calculated?
On line 11, subtract the credit used for the current year on line 10 from the preceding-year carryforward on line 1.