IT-645: Recapture of START-UP NY Tax Benefits (2024)
New York · NY DTF · Used for tax years 2024
New York Form IT-645 calculates the recapture of START-UP NY tax benefits through proportional recovery or recovery due to fraud. It also reports shares of recapture from partnerships, New York S corporations, estates, and trusts, and allocates recapture between fiduciaries and b
Who files this form
Form IT-645 reports recapture of START-UP NY tax benefits through proportional recovery or recapture due to fraud. It also reports a share of recapture from a partnership, New York S corporation, estate, or trust.
The form provides reporting steps for individuals, partnerships, fiduciaries, partners, S corporation shareholders, and beneficiaries. The supplied text does not explain the circumstances that require recapture.
What you'll need
Have the following information available, as applicable:
- Your name and identifying number as shown on your return.
- Form DTF-74, Certificate of Eligibility, for the approved START-UP NY business, and the business’s employer identification number (EIN).
- For Schedule A: the beginning and ending dates of the year subject to recovery, the year of the business tax benefit period, benchmark net new jobs, and net new jobs actually created.
- Amounts of the credits, refunds, tax exclusions, or exemptions being recaptured. Schedule B also asks for the wage exclusion claimed by employees.
- For recapture passed through an entity: its name, type, EIN, certificate number, and your share of recapture.
- For fiduciaries allocating recapture: beneficiary names as shown on Form IT-205, Schedule C, identifying numbers, and shares of recapture.
How to file
Submit Form IT-645 with Form IT-201, IT-203, IT-204, or IT-205. The supplied form does not give a mailing address or e-file instructions.
Complete either Schedule A for proportional recovery or Schedule B for recapture due to fraud, as applicable. Use Schedule C for recapture from a partnership, New York S corporation, estate, or trust, and Schedule D for beneficiary and fiduciary shares. Compute the total recapture in Schedule E.
Report the amount from line 38 as follows:
- Individuals: Enter the amount and code 645 on Form IT-201-ATT, line 20, or Form IT-203-ATT, line 19.
- Partnerships: Enter the amount and code 645 on Form IT-204, line 148.
- Fiduciaries: Include the amount on Form IT-205, line 12.
Common mistakes
Keep these printed reminders in mind:
- Complete either Schedule A or Schedule B, not both.
- On Schedule A, line 6, divide line 5 by line 3 and round to the fourth decimal place.
- In Schedule C, use P for partnership, S for S corporation, or ET for estate or trust. Use additional Forms IT-645 if necessary.
- In Schedule D, use beneficiary names exactly as shown on Form IT-205, Schedule C.
- Individuals and partnerships must include code 645 when transferring the line 38 amount to the specified return or attachment line.
Questions people ask
What is the difference between Schedule A and Schedule B?
Schedule A calculates proportional recovery of tax benefits. Schedule B calculates recapture of tax benefits due to fraud.
How is the proportional recovery percentage calculated?
Subtract net new jobs actually created on line 4 from benchmark net new jobs on line 3. Enter the result on line 5, then divide line 5 by line 3 and round to the fourth decimal place for line 6.
Where do I report my share of recapture from another entity?
Use Schedule C for recapture from a partnership, New York S corporation, estate, or trust. Fiduciaries include the line 31 total on line 32. All others enter it on line 36.
Does Schedule B include wage exclusions claimed by employees?
Yes. Schedule B, line 28, asks for wage exclusions claimed by employees. That amount is included in total recapture due to fraud on line 29.
How does a fiduciary calculate its share of recapture?
In Schedule D, subtract the share allocated to beneficiaries on line 33 from the total on line 32. Enter the fiduciary’s share on line 34 and carry it to line 37.