IT-640: START-UP NY Telecommunication Services Excise Tax Credit (2024)
New York · NY DTF · Used for tax years 2024
Form IT-640 calculates the New York START-UP NY Telecommunication Services Excise Tax Credit. It reports telecommunication services excise tax paid, shares of credit received from entities, and any allocation between an estate or trust and its beneficiaries.
Who files this form
Form IT-640 is used to claim the START-UP NY Telecommunication Services Excise Tax Credit. The form covers:
- Individuals, including sole proprietors, partnerships, and fiduciaries of estates or trusts that earned the credit.
- Partners, S corporation shareholders, and beneficiaries receiving a share of the credit.
All filers must complete line A to indicate whether they earned the credit directly or received a share of it.
What you'll need
Have the following information available to complete the form:
- Your name and identifying number as shown on your tax return.
- The certificate number from Form DTF-74, Certificate of Eligibility, issued to the approved START-UP NY business.
- The year of the START-UP NY business tax benefit period, entered as a number from 1 to 10.
- The telecommunication services excise tax paid, if completing Schedule A.
- For Schedule B, each entity’s name, type, employer identification number, certificate number, business tax benefit period year, and your share of the credit.
- For fiduciaries completing Schedule C, beneficiaries’ names as shown on Form IT-205, Schedule C, their identifying numbers, and their shares of the credit.
How to file
Submit Form IT-640 with Form IT-201, IT-203, IT-204, or IT-205.
To complete IT-640:
- Enter your name and identifying number as shown on your return. Calendar-year filers must mark the calendar-year box; other filers must enter their tax period’s beginning and ending dates.
- Complete line A. If you answer Yes, complete lines B and C and Schedules A and D. If you answer No, complete lines B and C and Schedules B and D.
- If you are a fiduciary, also complete Schedule C.
- In Schedule D, add lines 6, 7, and 8 to calculate the total credit on line 9.
Common mistakes
- Skipping line A: All filers must complete it.
- Leaving out the tax period: Calendar-year filers must mark the box. Other filers must enter beginning and ending dates.
- Missing Schedule C: Fiduciaries must complete it whether line A is Yes or No.
- Putting amounts on the wrong lines: Fiduciaries include lines 1 and 2 on line 3. Other filers enter line 1 on line 6 and line 2 on line 7.
- Omitting extra Schedule B entries: Submit additional forms if necessary and include their column F totals.
- Submitting IT-640 alone: The form says to submit it with Form IT-201, IT-203, IT-204, or IT-205.
Questions people ask
Where do I find the certificate number for line B?
Use the certificate number from Form DTF-74, Certificate of Eligibility, issued to the approved START-UP NY business.
What goes on line C?
Enter the year of the START-UP NY business tax benefit period as a number from 1 to 10.
Which entity codes should I use in Schedule B?
Use P for a partnership, S for an S corporation, or ET for an estate or trust.
How does a fiduciary calculate its share of the credit?
Add lines 1 and 2 on line 3. Total the credit allocated to beneficiaries on line 4. Subtract line 4 from line 3 and enter the result on lines 5 and 8.