Form IT-638 START-UP NY Tax Elimination Credit Tax Year ... 2026

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  1. Click ‘Get Form’ to open it in the editor.
  2. Begin by marking the appropriate box for your filing status: calendar-year filers or other filers. Enter the tax period dates if applicable.
  3. Fill in your name(s) and identifying number as shown on your return. Ensure that all filers complete line A regarding the type of entity claiming the credit.
  4. If claiming as an individual, partnership, or fiduciary, complete lines B, C, and D based on your entity type. For partnerships, ensure to fill out Schedule A.
  5. Proceed to Schedule A to calculate your allocation factor. Input values for property and wage factors as instructed.
  6. Complete Schedules B, C, D, and E as necessary based on your entity type and income from a START-UP NY business.

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School Tax Credit (Rate Reduction Amount): You are eligible for this credit if you: were a full-year or part-year resident of New York City, cannot be claimed as a dependent on another taxpayers federal return, and. had taxable New York City income of $500,000 or less.
You are entitled to this nonrefundable credit if you: Filing statusFederal adjusted gross income Single $28,000 or less Married filing jointly Qualifying surviving spouse Head of household with qualifying person $32,000 or less Married filing Separately See the Instructions for Form IT-201 or Instructions for Form IT-203 Jul 25, 2025
The Empire State child credit is a refundable credit available to full-year New York State residents who have at least one qualifying child. For tax years beginning on or after January 1, 2023, the credit includes qualifying children under four years of age but under 17, who meet income limitations.
START-UP NY helps new and expanding businesses through tax-based incentives and innovative academic partnerships. START-UP NY offers new and expanding businesses the opportunity to operate tax-free for 10 years on or near eligible university or college campuses in New York State.
Start-Up NY Tax Elimination Credit This program targets businesses located on or near eligible academic campuses. Startups can benefit from zero state and local taxes and also enjoy wage exclusion tax benefits. Participating businesses must partner with a New York State college or university.
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The IRS allows small businesses to deduct up to $5,000 in startup costs in the first year of operation. Startup costs include necessary expenses incurred before your business officially opens its doors. These expenses must be directly related to getting your business up and running.
Eligible employers may be able to claim a tax credit of up to $5,000, for three years, for the ordinary and necessary costs of starting a SEP, SIMPLE IRA or qualified plan (like a 401(k) plan.) A tax credit reduces the amount of taxes you may owe on a dollar-for-dollar basis.

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