IT-645: Recapture of START-UP NY Tax Benefits (2025)
New York · NY DTF · Used for tax years 2025
Form IT-645 calculates the recapture of New York START-UP NY tax benefits through proportional recovery or recapture due to fraud. It also reports shares of recapture from partnerships, New York S corporations, estates, and trusts, and allocates recapture between beneficiaries an
Who files this form
Form IT-645 reports recapture of START-UP NY tax benefits through proportional recovery or recapture due to fraud.
The form includes reporting sections for individuals, partnerships, fiduciaries, and partners, S corporation shareholders, or beneficiaries reporting a share of recapture. Submit it with Form IT-201, IT-203, IT-204, or IT-205.
The form refers to instructions for choosing the applicable schedule. Those instructions are not included in the supplied text.
What you'll need
Have the following information ready, 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's certificate number.
- The certified business's employer identification number (EIN).
- For Schedule A: the beginning and ending dates of the year subject to recovery, the year of the benefit period from 1 through 10, benchmark net new jobs, and net new jobs actually created.
- Amounts of the credits, refunds, tax exclusions, and exemptions being recaptured. Schedule B also asks for the wage exclusion claimed by employees.
- For Schedule C: each entity's name, type, EIN, certificate number, and your share of recapture.
- For Schedule D: 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 provide a mailing address or e-filing directions.
Complete either Schedule A for proportional recovery or Schedule B for recapture due to fraud. Use the applicable entity and allocation sections, then total the recapture in Schedule E, line 38.
Report 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 directions 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.
- Individuals and partnerships must include code 645 when transferring the line 38 amount to the specified return line.
- Submit IT-645 with the applicable return rather than by itself.
Questions people ask
Where do I find the certificate number?
Use the certificate number from Form DTF-74, Certificate of Eligibility, issued to the approved START-UP NY business.
What is the difference between Schedule A and Schedule B?
Schedule A is for proportional recovery of tax benefits. Schedule B is for recapture of tax benefits due to fraud. The form directs you to complete either one and refers to instructions for further guidance.
Where do I report a share of recapture from an entity?
Schedule C collects partnership, New York S corporation, and estate or trust information, including the share of recapture. Its total goes on line 31. Fiduciaries include that amount on line 32; all others enter it on line 36.
How is the fiduciary's share calculated?
In Schedule D, line 32 combines the amount from line 22 or line 29 with the amount from line 31. Line 33 totals the shares allocated to beneficiaries. Subtract line 33 from line 32 to calculate the fiduciary's share on line 34, then enter that amount on line 37.