Farmer's School Tax Credit

[ccristman]

I'm researching about the Farmer's School Tax Credit in NYS. When I was originally trained, I was told to add the prior year credit in as income for the following year. However, I've come across the following:

If you claimed the farmers’ school tax credit on your 2021 New York State tax return, and you deducted the school taxes when you computed your federal income on your 2021 federal return, then you must enter the amount of the credit claimed for 2021 on this year’s return.

If you were required to report the amount of the credit as income on your 2022 federal return, do not make this modification."

Now I am questioning when you would use the NYS modification form and when you wouldn't. When are you "required" to report the income on your Federal return and when are you not? Any clarification would be appreciated.

[Uncle Sam]

Maybe this will help you: https://www.tax.ny.gov/forms/html-in...t225i-2022.htm

[ccristman]

That's where I pulled to original quote from. I just don't see a clear explanation of when you report it on your Federal return and when you do not.

[Uncle Sam]

Here's the NYS Tax Practitioner Hotline Number: 518-457-5451