IT-653 and Estimated Taxes
New York State’s draft 2021 versions of Form IT-653, Pass-Through Entity Tax Credit, and Form IT-2105.9, Underpayment of Estimated Tax by Individuals and Fiduciaries, provide important information about the interaction of the pass-through entity tax credit with the estimated tax requirement for the 2021 tax year.
The pass-through entity tax credit will not be considered when determining if a taxpayer has made sufficient payments to meet the safe harbor that uses 100% or 110% of the prior year tax. As a result, any taxpayer who is attempting to meet the prior-year safe harbor must continue the withholding and/or estimated tax payments that he or she previously scheduled for the 2021 tax year.
Our upcoming seminars in December and January will provide in-depth information, strategies and considerations related to this pass-through entity tax. If you are not already registered for our seminars, register here.