IT-201-ATT: Other NY Tax Credits & Taxes

Purpose of Form IT-201-ATT

Form IT-201-ATT is used by full-year New York State residents (filing Form IT-201) to claim various credits and report additional taxes that cannot be calculated on the main return. Think of it as the worksheet attachment where you perform the calculations for complex items before transferring the final result to your main Form IT-201. It is used to:

• Claim Non-Refundable Credits: Calculate credits that directly reduce your New York State tax liability.
• Claim Refundable Credits: Calculate credits that can result in a refund even if you owe no tax.
• Report Additional Taxes: Calculate and report the MCTMT or the Supplemental Tax.

Part 1: Non-Refundable Credits

These reduce your tax bill to zero — any excess credit is lost.

College Tuition Credit / Itemized Deduction

A credit for tuition paid to an eligible NY college or university for you, your spouse, or dependent. The credit is 4% of qualified tuition expenses (up to $10,000 for graduate students, $5,000 for others), with a max credit of $400. You must choose between this credit or an itemized deduction — you cannot take both.

Empire State Child Credit

A credit for children ages 4–16 (or 17 if a full-time student). Equal to 33% of the federal child tax credit, but with its own phase-out based on NY adjusted gross income. Different calculation applies for NYC residents.

Child and Dependent Care Credit

A credit for child/dependent care expenses, similar to the federal credit but with NY-specific rules and percentages. Based on federal Form 2441. NY's percentage of eligible expenses can be higher than the federal rate for some taxpayers.

Real Property Tax Credit

A credit for property taxes paid (or an equivalent for renters). Highly income-sensitive, designed for low- and middle-income households. Has strict eligibility rules based on age, income, and property tax/rent paid as a percentage of income.

Part 2: Refundable Credits

Direct cash benefits — you can receive these even if your tax liability is zero.

Earned Income Tax Credit (EITC)

New York's version of the federal EITC — a significant credit for low-to-moderate income working individuals and families. A percentage of the federal EITC (varies from 10% to 30% depending on income and number of children). You must qualify for and claim the federal EITC to get the NY credit.

Empire State Child Credit (Refundable Portion)

For lower-income families, a portion of the Empire State Child Credit becomes refundable. Based on a separate calculation that considers earned income.

New York City School Tax Credit

A small refundable credit for NYC residents, even those with no tax liability. A fixed amount based on filing status and income (e.g., $125 for single filers under $75,000). Must be a NYC resident for the entire year.

Part 3: Additional Taxes

Metropolitan Commuter Transportation Mobility Tax (MCTMT)

A payroll tax on self-employed individuals who do business in the NYC Metropolitan Commuter Transportation District (MCTD). Applies if your net earnings from self-employment in the MCTD exceed $50,000. The rate is 0.34% of net earnings from self-employment within the MCTD.

Supplemental Tax

An additional tax on certain lump-sum distributions (e.g., stock options, bonuses, severance) that were not subject to NY State withholding at the correct rate. Applies when your NY State withholding on supplemental wages was less than 9.62%.

Common Pitfalls

• Order of Operations: Credits on the IT-201-ATT are applied in a specific sequence. The form itself dictates the order.
• No Double-Dipping: You cannot claim both a credit and a deduction for the same expense (e.g., College Tuition).
• Documentation: You must maintain all receipts, tuition statements (Form 1098-T), and other records to support every credit claimed.
• Income Phase-Outs: Nearly all credits phase out at higher income levels. Using the wrong NY adjusted gross income figure will lead to an incorrect calculation.
• MCTMT Confusion: This is not an income tax — it is a separate tax on self-employment earnings for the privilege of doing business in the MCTD. It is calculated and paid annually with your return.

Frequently Asked Questions

I am a NYC resident. Can I claim the NYC School Tax Credit on this form?

Yes. If you were a NYC resident for the entire tax year and meet the income requirements, you calculate the credit on Form IT-201-ATT, Part 2.

I paid college tuition. Should I take the credit or the itemized deduction?

Run the numbers both ways. The credit (max $400) directly reduces your tax. The deduction reduces your taxable income. For most taxpayers in the 4%–6% NY tax bracket, the deduction provides a benefit of $200–$300 on a $5,000 expense. The credit is often slightly more valuable.

I am self-employed and work in Westchester County. Do I owe the MCTMT?

Yes, if your net earnings exceed $50,000. Westchester is part of the Metropolitan Commuter Transportation District (MCTD). You will calculate the tax in Part 3 of the IT-201-ATT.

Where do I report my New York City resident tax?

You do NOT report it here. NYC resident tax is calculated directly on your main Form IT-201. Form IT-201-ATT is for additional credits and other specific taxes.

My employer did not withhold NY State tax on my year-end bonus. What do I do?

You may owe the Supplemental Tax. Calculate it in Part 3 of the IT-201-ATT to ensure you pay the proper 9.62% tax rate on that income.

Can I claim the NY EITC if I don't qualify for the federal EITC?

No. Eligibility for the New York State EITC is dependent on qualifying for and claiming the federal EITC. You must complete federal Schedule EIC.

How do I know if my tuition expenses qualify for the credit?

The institution must be eligible (most NY degree-granting colleges are). Expenses must be required for enrollment. The student must be you, your spouse, or your dependent. Room, board, and insurance do not qualify.