NY IT-213 - Empire State CTC

[GraceNY]

Taxpayer filing HOH with 2 dependents.  One is 12 years old and is considered a "qualifying child" for CTC purposes  The other turned 17 during 2020 and is listed as "other dependent" and qualifies for the credit for other dependents.

On the NY IT-213, Line 4 ATX answers that question with "2."  The NY Instructions clearly state that only those dependents who are under 17 at the end of the year (12/31/20) should be listed.  Therefore, this question should be answered "1" not "2."

Of course this error produces an incorrect Empire State CTC.  I have manually calculated the credit.  I can't override it because the number "2" comes from the dependents information listed on the 1040.

I submitted this case to support over a week ago.  Today, I get an email saying "case closed" with no explanation.

I am starting not to trust ATX and it's software.  Between this and the SS worksheet it makes me wonder what else is incorrect in this years software.

Grace

[HV Ken]

Line 4 is the number from the federal return. You should see a 2 there.

Line 5 is for children >= 4 and < 17. You should see a 1 there.

The Form and ATX are correct. They should have at least explained why they closed the ticket.

[GraceNY]

The Line 4 Instructions specifically state "Enter the # of children who qualify for the federal CTC, and any child who was less than 17 years old on 12/31/20 that qualifies for the federal credit for other dependents."

Only 1 of the children qualify for the federal CTC.  The other child who qualifies for the federal credit for other dependents turned 17 in 2020 and was not less than 17 years old on 12/31/20.

Also, if you look at "Worksheet A, for IT-213, Line 6  "Line 1 says "enter the number of children from Form IT-213, line 4 by $1,000"  ATX answer is $2,000 ($1,000 x 2) because they are taking the Line 4 # of 2 (which I believe is incorrect based on my above referenced instructions).

In the end, ATX computes a Empire State CTC in the amount of $272.  When I complete the form and worksheet manually and based on the instructions, I get $215.

????

Grace

[HV Ken]

My form does not read the same as yours then.

It has worked this way for years.

See screenshot.

 

 

[GraceNY]

Thanks HV Ken for your response and patience.  I still think ATX is incorrect.

My form is the same as yours.

From your screenshot,  Line 4 says "(see instructions)."   When you go to the instructions for Line 4, it says ..."and any child who was less than 17 years old on 12/31/20, that qualifies for the federal credit for other dependents."  1 of the dependents was not less than 17 years old on 12/31/20.  She turned 17 in 2020.

And, as I outlined in my prior post, Worksheet A, Line 1, uses the number in the box from Line 4 IT-213 for computing the credit.  ATX starts computing the credit with $2,000 implying that both dependents qualify for the credit when they don't.  Only 1, the 12 year old qualifies.

[HV Ken]

You need to look at Step 4 on page 2, lines 9 through 13. You will see here the adjustment. This is after Worksheet A comes in to play.