IT-251: Credit for Employment of Persons with Disabilities (2024)
New York · NY DTF · Used for tax years 2024
New York Form IT-251 calculates the Credit for Employment of Persons with Disabilities based on qualified first-year and second-year wages. It also reports shares of the credit received from partnerships, New York S corporations, estates or trusts, and calculates the credit used
Who files this form
Form IT-251 is used to claim the Credit for Employment of Persons with Disabilities. It includes sections for:
- Individuals who are sole proprietors, partnerships, and estates or trusts calculating a credit on qualified wages.
- Partners, New York S corporation shareholders, and estate or trust beneficiaries receiving a share of the credit from an entity.
- Taxpayers reporting a credit carryover from last year’s Form IT-251.
The supplied form does not explain the full eligibility requirements for qualified employees or wages.
What you'll need
Have the information needed for the sections that apply to you:
- Your name and identifying number as shown on your return.
- Each qualified employee’s name, Social Security number, one-year qualifying wage period, and wages paid during the tax year for services during that period.
- The number of qualified full-time employees used in each wage-credit calculation.
- For a credit received from an entity: its name, type, employer identification number, and your share of the credit.
- For fiduciaries: beneficiary names as shown on Form IT-205, Schedule C, identifying numbers, and credit shares.
- Last year’s Form IT-251 if you have a carryover credit.
- Tax due before credits and credits applied before this credit, if completing Schedule F.
How to file
Submit Form IT-251 with Form IT-201, IT-203, IT-204, or IT-205, as applicable.
- Use Schedule A to calculate the credit on qualified first-year and second-year wages. Use additional forms if necessary.
- If you received a credit share from an entity, complete Schedule B with the entity’s information and Schedule C with your credit share.
- Fiduciaries use Schedule D to report beneficiary and fiduciary shares.
- Complete Schedule E to total the credit, including any carryover from last year.
- Partnerships enter the Schedule E, line 16 amount and code 251 on Form IT-204, line 147. All others complete Schedule F to calculate the credit used and carryover.
The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Do not list the same employee in both Part 1 and Part 2 of Schedule A.
- Observe the $6,000 wage limit shown in column D for each employee.
- Include column D totals from all additional forms when completing lines 1 and 4.
- Fiduciaries must not make entries on Schedule E, lines 12 and 13.
- Submit IT-251 with the applicable return listed on the form.
Questions people ask
What percentage is used to calculate the credit?
The form applies 35% to qualified first-year wages and qualified second-year wages. Each employee’s column D wages are subject to the printed $6,000 limit.
Where do I report a credit passed through from an entity?
Enter the entity’s information in Schedule B. In Schedule C, report a partnership share on line 8, a New York S corporation share on line 9, or an estate or trust share on line 10.
How much credit can I use this year?
Schedule F, line 20 directs you to enter the lesser of your total credit on line 16 or your net tax on line 19. That line also refers to instructions, which were not supplied.
Can unused credit carry over to next year?
The form provides for a carryover. Line 21 calculates the amount available for next year by subtracting the credit used on line 20 from the total credit on line 16.