IT-644: Workers with Disabilities Tax Credit (2024)
New York · NY DTF · Used for tax years 2024
Form IT-644 is used to claim New York’s Workers with Disabilities Tax Credit. It calculates the credit for qualified wages paid to qualified full-time and part-time employees and reports shares of the credit received from a partnership, New York S corporation, estate, or trust.
Who files this form
Use Form IT-644 to claim the Workers with Disabilities Tax Credit. The form covers:
- Individuals, including 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 who received a share of the credit.
All filers must complete line A to indicate whether they earned the credit directly or received a share from another entity.
What you'll need
Have the following ready, as applicable:
- A copy of the final Certificate of Eligibility issued by the New York State Department of Labor. You must submit it with the form.
- Your name and identifying number as shown on your tax return.
- The certified business’s name, EIN, counts of qualified full-time and part-time employees, and allocation year.
- Each qualified employee’s name, Social Security number, hire date, termination date if applicable, and qualified wages paid.
- For a credit received from another entity: its name, entity type, EIN, and your share of the credit.
- For fiduciaries allocating credit: beneficiaries’ names, identifying numbers, and shares of the credit.
- Last year’s Form IT-644 if you have a carryover credit, plus your tax due before credits and credits claimed before this credit.
How to file
Submit Form IT-644 with Form IT-201, IT-203, IT-204, or IT-205. Include a copy of the final Certificate of Eligibility from the New York State Department of Labor.
Complete line A, then follow the route for your situation:
- If you answer Yes: Complete lines B through F. Sole proprietors complete Schedules A, D, and E; partnerships complete Schedules A and D; fiduciaries complete Schedules A, C, D, and E.
- If you answer No: Complete Schedules B, D, and E. Fiduciaries also complete Schedule C.
Partnerships enter the line 12 amount and code 644 on Form IT-204, line 147.
The supplied form text does not provide a mailing address or e-filing directions.
Common mistakes
- Skipping line A: Every filer must complete it.
- Omitting the certificate: You must submit a copy of the final Certificate of Eligibility.
- Counting an employee twice: Do not include the same employee in both the full-time and part-time portions of Schedule A.
- Leaving the filing period blank: Calendar-year filers must mark the box. Other filers must enter the beginning and ending dates of their tax period.
- Using different beneficiary names: Schedule C beneficiary names must match those on Form IT-205, Schedule C.
Questions people ask
How is the credit calculated for qualified full-time employees?
Schedule A, Part 1 calculates 15% of each qualified employee’s qualified wages, limited to $5,000 per employee.
How is the credit calculated for qualified part-time employees?
Schedule A, Part 2 calculates 10% of each qualified employee’s qualified wages, limited to $2,500 per employee.
Where do I report a share of credit received from another entity?
Use Schedule B. Enter the entity’s name, type, EIN, and your share of the credit. The type codes are P for partnership, S for S corporation, and ET for estate or trust.
How does the form calculate the credit used and the carryover?
Schedule E limits the current-year credit used to the smaller of the total credit on line 12 or the tax remaining on line 15. It then subtracts the credit used and any unused expired credit to calculate the carryover to next year.