IT-226: Employer Compensation Expense Program Wage Credit (2024)
New York · NY DTF · Used for tax years 2024
Form IT-226 calculates the New York Employer Compensation Expense Program wage credit. It reports wages from participating employers, the credit applied against your tax, and any unused credit available to carry forward. Submit it with Form IT-201 or Form IT-203.
Who files this form
For tax year 2024, you may qualify for the ECEP wage credit if you worked for an employer that elected to participate in the Employer Compensation Expense Program and your wages and compensation for the year exceeded $40,000.
You must file Form IT-226 for every year you claim either:
- A credit on current-year wages and compensation.
- A credit carried forward from a prior tax year.
If you are claiming only a carryforward credit, go directly to Schedule C, line 8.
What you'll need
Have the following information available:
- Your New York State income tax return, Form IT-201 or Form IT-203.
- Your name and Social Security number, and your spouse’s information if applicable, as shown on your return.
- Each covered employee’s Social Security number and each electing employer’s name and identification number.
- Wages and compensation received from each electing employer, as included on your return’s line 1. For Form IT-203, use the New York State amount column.
- Last year’s Form IT-226, line 14, if you have a carryover credit.
- Any applicable amounts from Form IT-201-ATT or Form IT-203-ATT, and information about other credits applied before this credit.
If Schedule A does not have enough room, attach additional sheets in the same format. Include your name and Social Security number on each sheet.
How to file
Complete Form IT-226 using information from your New York State personal income tax return. Submit it with Form IT-201 or Form IT-203.
- Complete Schedule A with a separate line for each covered employee and electing employer combination. In column E, subtract $40,000 from each column D amount.
- Complete Schedule B to calculate the current-year credit.
- Complete Schedule C to apply the credit and calculate any carryover. If you are claiming only a prior-year carryforward, start at line 8.
- Enter the amount from line 13 and code 226 on Form IT-201-ATT, line 6, or Form IT-203-ATT, line 7.
Submit any additional Schedule A sheets with Form IT-226 and your return. The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Leaving out Form IT-226 when claiming a carryforward. You must file it even if you are claiming only a credit from a prior year.
- Combining employee and employer entries. Use a separate Schedule A line for each covered employee and electing employer combination, even if both spouses worked for the same employer.
- Including wages from a non-electing employer. Do not include those wages in Schedule A, column D.
- Omitting identifying information on extra sheets. Each additional Schedule A sheet must include your name and Social Security number and use the schedule’s format.
- Applying credits in the wrong order. Apply the household credit first, then credits that cannot be carried over or refunded, then credits with limited carryover periods, then credits with unlimited carryover periods. Apply refundable credits last.
Questions people ask
How do I know whether my employer participates in ECEP?
An employer that elected to participate should tell you it opted into the program and provide information about the program.
What if my spouse and I worked for the same electing employer?
Use separate lines in Schedule A for each spouse, even when the employer is the same.
Can I carry unused credit forward?
Yes. If the available ECEP wage credit reduces your New York State tax due to zero and some credit remains unused, you may carry the unused credit forward into future years. Line 14 shows the amount available to carry over to next year.
What if I am claiming only a prior-year credit?
You must still file Form IT-226. Go directly to Schedule C, line 8, and enter the carryover credit from last year’s Form IT-226, line 14.
Which wages do nonresident and part-year resident filers use?
Form IT-203 filers use wages and compensation from each electing employer included on Form IT-203, line 1, in the New York State amount column. Do not include wages from non-electing employers.