IT-635: New York Youth Jobs Program Tax Credit (2024)
New York · NY DTF · Used for tax years 2024
Form IT-635 calculates the New York Youth Jobs Program Tax Credit. It reports credit for certified youths employed by a certified business, shares of credit received from other entities, and allocations between beneficiaries and fiduciaries.
Who files this form
Form IT-635 is for claiming the New York youth jobs program tax credit. The form covers:
- Individuals (sole proprietors), partnerships, and fiduciaries of estates or trusts that earned the credit.
- Partners, shareholders of New York S corporations, and beneficiaries of estates or trusts receiving a share of the credit.
All filers must complete line A to show whether they earned the credit directly or are claiming a passed-through credit.
What you'll need
You must submit a copy of the annual final certificate of tax credit issued by the New York State Department of Labor.
Have the following information ready, as applicable:
- Your name as shown on your return and taxpayer identification number.
- For a business that earned the credit: its certified business name, EIN, certificate number, program year, and the numbers of certified youths employed full-time and part-time included in the claim.
- For a passed-through credit: each entity’s name, type, EIN, and your share of the credit.
- For credit allocated to beneficiaries: each beneficiary’s name as shown on Form IT-205, Schedule C, identifying number, and share of the credit.
How to file
Submit Form IT-635 with Form IT-201, IT-203, IT-204, or IT-205. Include a copy of the annual final certificate of tax credit issued by the New York State Department of Labor.
- Calendar-year filers: mark an X in the calendar-year box. Other filers: enter the beginning and ending dates of the tax period.
- Complete line A. If you answer Yes, complete lines B through G and Schedules A and D. If you answer No and are claiming a passed-through credit, complete Schedules B and D.
- Fiduciaries must also complete Schedule C.
- Submit additional forms if necessary for Schedules B or C.
- In Schedule D, add lines 6, 7, and 8 and enter the total credit on line 9.
The supplied form text does not give a mailing address or e-filing instructions.
Common mistakes
- Leaving line A blank: The form states that all filers must complete it.
- Omitting the certificate: You must also submit a copy of the annual final certificate of tax credit issued by the New York State Department of Labor.
- Submitting IT-635 without the accompanying return: The form says to submit it with Form IT-201, IT-203, IT-204, or IT-205.
- Skipping Schedule C as a fiduciary: The form reminds fiduciaries to complete Schedule C whether the credit was earned directly or passed through.
Questions people ask
Where do I find the certificate number and program year?
Use the annual final certificate of tax credit. Enter the certificate number on line D and the program year on line G.
How do I report a credit passed through to me?
Complete Schedule B for each partnership, New York S corporation, or estate or trust that gave you a share of the credit. Enter the entity’s name, type, EIN, and your share. Use P for a partnership, S for an S corporation, or ET for an estate or trust.
What if I need more room in Schedule B or C?
Submit additional Forms IT-635 as necessary. Each schedule has a line for the total credit amounts from the additional forms.
How does a fiduciary calculate its share of the credit?
In Schedule C, add lines 1 and 2 to get line 3. Enter the total credit allocated to beneficiaries on line 4. Subtract line 4 from line 3, then enter the result on lines 5 and 8.