A New York State corporate franchise tax return or banking return is prepared for calendar, fiscal and short year corporate returns. Using entries from the federal tax return and on New York worksheets, the following forms are produced for the New York return:
Fort CT-2, Corporation Tax Return Summary
Form CT-3, New York State Corporation Franchise Tax Return
Form CT-3.1, Investment and Other Exempt Income and Investment Capital
Form CT-3.2, Subtraction Modification for Qualified Banks
Form CT-3.3, Prior Net Operating Loss Conversion (PNOLC) Subtraction
Form CT-3.4, Net Operating Loss Deduction (NOLD)
Form CT-3M MTA Business Tax Surcharge
Form CT-5, Application for Six-Month Extension
Form CT-5.1, Application for Additional Extension
Form CT-6, Election to be Treated as a New York S Corporation
Form CT-41, Credit for Employment Persons with Disabilities
Form CT-43, Claim for Special Additional Mortgage Recording Tax Credit
Form CT-46, Claim for Investment Tax Credit
Form CT-47, Claim for Farmers' School Tax Credit
Form CT-222, Underpayment of Estimated Tax
Form CT-222.1, Election to Use Different Election Periods for Corporate Estimated Tax
Form CT-223, Innovation Hot Spot Deduction
Form CT-225, NY State Modifications
Form CT-227, Voluntary Contribution
Form CT-238, Claim for Rehabilitation of Historic Properties Credit
Form CT-249, Claim for Long-Term Care Insurance Credit
Form CT-300, Mandatory First Installment (MFI)
Form CT-399, Depreciation Adjustment Schedule
Form CT-400, New York State Declaration of Estimated Tax
Form CT-501, Temporary Deferral Nonrefundable Payout Credit
Form CT-600, Ordering of Corporation Tax Credits
Form CT-601, Claim for EZ Wage Tax Credit
Form CT-602, Claim for EZ Capital Tax Credit
Form CT-604, Claim for QEZE Tax Reduction Credit
Form CT-604CP, Claim QEZE Credit for Corporate Partners
Form CT-606, Claim for QEZE Credit for Real Property Taxes
Form DTF-621, Claim for QETC Eemployment Credit
Form DTF-622, Claim for QETC Capital Tax Credit
Form CT-635, New York Youth Job Program Credit
Form CT-637, Alternative Fuels & Electric Vehicle Recharging Property Credit
Form CT-641, Manufacturer's Real Property Tax Credit
Form CT-647, Farm Workforce Retention Credit
Form CT-648, Life Sciences R&D Tax Credit
Form CT-649, Farm Donations to Food Pantries
Form CT-650, Empire State Apprenticeship Tax Credit
Form CT-651, Recovery Tax Credit
Form CT-652, Employer-Provided Childcare Credit
Form CT-654, New York Musical and Theatrical Production Tax Credit
Form CT-655, Restaurant Return-to_Work Credit
Form DTF-686, Tax Shelter Reportable Transactions
Form IT-204-LL, LLC/LLP Filing Fee (Disregarded Entities)
Form POA-1, Power of Attorney
PTET Worksheet/Export
* Available in the 1120 system only
A copy of the federal return is provided for filing with the New York State and City returns.
Federal Interview Form Notes and Automatic Features
The State Common Data forms provide a centralized location to create state returns and to enter data common to all states and cities. Following is a description of each series of input forms and how they interact with processing a New York return.
State/City Generation Forms
A state or city return may simply be processed by selecting the states or cities you wish to include with your federal return on State/City Generation > Common State. No additional entries on state/city input forms are required. This provides a centralized location to manage your single or multi-state returns.
If you wish to delete a state or city from your return after you created and processed it using the State/City Generation forms, uncheck the applicable field on these forms and use the Delete State feature in the Edit menu.
General Information Forms
These forms are used to enter data common to all states and cities returns. They provide a centralized location and generic format to simplify entering state and city data. Not all state and city data are contained here. Fields which are unique or not shared by a group of entities is still located on unique state and city input forms.
When using these forms an entry is mandatory in the State/City Code field. Presence of data on this form will not create a state or city return. These may only be created in two ways:
Selecting states or cities on Common Data>State/City or
Presence of state/city level input
You may designate data to apply to a particular state/city return or you can indicate for it to apply to all of the state/city returns present. To flag your entries to a particular state/city, enter the state/city code from the picklist in the State/City Code field. To apply your input to all of the states and cities present make an "ALL" entry in the State/City Code field.
There are 3 levels of default for the General Information input series. The first level is to the Basic Data entered with the federal return. This applies only to selected fields. Specifically those followed by the word "override" on the worksheet. For example, if no entries are made on General Information input series for date of incorporation, the states/cities will default to the incorporation date on the Basic Data worksheet.
The second level is to Common Data input with a state/city code of "ALL". "ALL" code means it applies to every state and city in the return, unless a unique state/city code is present. For example, if you make an entry for the incorporation date on Common Data > General Information > State/City which is different from the federal, all the states will default to the "ALL" coded date and ignore the federal date. However, if a General Information entry is also present with a different date and a state code of NY, then New York will pick up the NY coded date and ignore the federal date and the General Information entry date coded "ALL."
The third level is to the General Information input with a specific state/city code. If both an "ALL" occurrence and a specific state/city entry is present, data must be present in a particular field of the unique state/city occurrence or the default to "ALL" entry for that field will still take place. For example, you have entered the General Information form coded "ALL" which contains an entry for Telephone Number. You have also entered a General Information form coded NY and make only one entry to indicate that it is an initial return for New York. The New York program will pick up your initial return entry and also the telephone number from your "ALL" entry, since no telephone number was entered with the NY occurrence.
State Tax Payments
Use State Tax Payments > Payment/Penalty to enter estimated tax payments, withheld amounts, and various other tax payments for NY. Any payment made after the due date of the return will not be used n the computation of the underpayment penalty but will be used in the computation of the late interest penalty. An entry in the State Code field is mandatory. Not all fields apply to all states. Once an entry of NY is made in this field, we will allow you to only land on those fields which are applicable to NY. Presence of data on this form will NOT create a state return.
Taxes Paid Based on Income: If you have identified yourself as a Cash Basis taxpayer, your entries in the columns for Taxes Based on Income will be carried to the Taxes and Licenses deduction line on page 1 of the federal return. We identify you as Cash Basis taxpayer if your accounting method is identified as cash on Miscellaneous Information > Basic Data, and the State Tax Accrual option has not been selected on Basic Data > Processing Options. Your entries here will also be used by NY in arriving at the applicable state tax deductions and/or addbacks to federal income. Any entries on Business > Taxes and Licenses will be in addition to your entries in these fields. You may override this treatment of the detailed state and city tax payments by making an entry in the field entitled Suppress Carrying of Detailed State/City Tax Payments for Cash Basis Taxpayers on the Return Options > Processing Options. or by selecting the same option in the Return Configuration Set. You may also elect on a state by state basis by making an entry on Payments/Penalties > State Tax Payments in the field entitled "Suppress carrying of this state's tax payments for a cash basis taxpayer."
If you are an Accrual Basis taxpayer, your entries in the columns for Taxes Based on Income and/or Not Based On Income will not be carried to the Taxes and Licenses deduction line on page 1 of the federal return or used to determine any state addbacks or tax deductions. We identify you as an Accrual Basis taxpayer if your accounting method is identified as accrual on Basic Data > Miscellaneous Information, or the State Tax Accrual option has been selected on Basic Data > Processing Option.
State Estimated Tax Forms
Enter the estimated tax information for NY on the Estimates and Application of Overpayment worksheet
Penalty Forms
Use these forms to enter penalty information for New York. We produce detail schedules of the late payment interest and late payment and late filing penalties. Any estimated tax payment made after the due date of the return will not be used in the computation of the underpayment penalty but will be used in the computation of the late interest penalty. . Late interest and penalty information is entered on the State/City Interest and Penalty worksheet and underpayment of estimated tax data is entered in State / City Underpayment Penalty worksheet. Enter "NY" in the field entitled State Code. This is a required entry. No assumption to the state code is made by the program. An entry in the State Code field is mandatory. Not all fields apply to all states. We will allow you to only land on those fields which are applicable to your entry in the State Code field. Presence of data on this form will not create a state return.
Multiple State Apportionment and Allocation
Apportionment and allocation information in entered on the Allocation and Apportionment worksheet, Property, Payroll, Sales, Allocation, Other State Apportionment Information and Other State Allocation Information sections.
For multiple state returns, enter the amount on the Common State > Allocation and Apportionment worksheet, Property Factor section, Payroll Factor section and Sales Factor section.
Form CT-3 General Business
Unless New York Allocation Percentage > Allocation Elections and Overrides > air freight forwarder is checked, property and wage entries are ignored when computing the New York BAP.
New York State Amounts:
The New York amounts must be entered on Common State > Allocation and Apportionment worksheet, various sections.
Entries made for New York City and the MTA surcharge do not carry as New York State amounts.
Total Everywhere Amounts:
Total everywhere amounts are automatic, although they may be overridden directly on the Common State > Total Everywhere Overrides worksheet.
Form CT-3 General Business (Aviation, Railroad or Trucking Company)
There are no processing defaults. Use Interview Form MST-H to provide revenue arrivals, revenue tons, originating revenue or revenue miles
CT-3M/4M
The following defaults for Form CT-3M/4M, Schedule A apply when allocation information is present for New York and/or New York City.
MCTD - Column A: If this is a multiple state return and no MCTD amounts are entered on the Common on State > Allocation and Apportionment , amounts entered for New York State carry to New York City (if present) and the MTA Surcharge Return. Thus, if inventory is the same for New York State, New York City, and MCTD, it only needs to be entered once - the New York State amount is used for both the New York City and MCTD purposes.
If this is not a multiple state return and no MCTD amounts are entered on the Common on State >Allocation and Apportionment, the New York City amounts (if present) carry to the MTA Surcharge Return.
NYS - Column B: If this is a multiple state return, the New York State amounts entered carry to the MTA Surcharge Return.
If this is not a multiple state return, the "Total Everywhere" amount entered carries to the MTA Surcharge Return.
Request for Extension
The following extensions may be requested by using Extension> State/City Extensions .
Form CT-5, Application for Six-Month Extension
Form CT-5.1, Application for Additional extension of Time
Enter the state code "NY" on Other > Extension > State Extension > State, , to produce CT-5 from information computed on the applicable New York tax return. Federal Other > Extension > State Extension may be used to enter overrides for taxes and prepayments.
To produce Form CT-5.1, enter a "3" on Extension > State > Special Code.
To produce Form IT-370 for New York group return filers, enter a "4" on Extension > State > Special Code.
Request for Election
The following election may be requested on federal General > Election by a Small Business Corporation.
Form CT-6, Election to be Treated as a NY S Corporation
Use Election by a Small Business Corporation > General to produce CT-6. You may use the FS and State codes on General > Election by a Small Business Corporation, "FS" and "State" fields to create the New York election.