NYC 1127

Forum|Forum|1 month ago
May 18, 2026
2 replies
16 views

I'm sure I can't be the only one with this!!!

Has anyone rec'd letters from personal tax clients about eliminating the School Tax Credit(s) on the 1127 Schedule B, Lines A! and A2

Getting letters all over the place!

ProSeries Professional

ljr

Level 9

YES, and I cannot figure out why. I got one or two calls regarding the NYS return regarding the school tax credit and now a few on the 1127 and the difference in refund is the school tax credit. I can't find any information on why though.

I don't know if this is a NYC issue or a software issue. I'm leaning to NYC. . . . .

I

InnovativeTaxAuthor

Level 4

Yeah. I agree! I have already have an escalated case with ProSeries to look into this, but I'm sure NYS has to say something about this! Check all instructions etc etc and see nothing for an explanation?

Already got 3 more letters from clients this AM. This will definitely hit the news!

Let's make a deal....we both promise to tell each other if we hear anything further?

Thanks!

R

RyanB

Level 2

From the NYC Dept of Finance:

"You can no longer claim the New York City School Tax Credit on lines A1 and A2 of Schedule B on the NYC-1127.
The STAR credit applies to New York State income taxes. It does not apply to New York City income taxes."

Which is ridiculous considering the form instructions still tell you to calculate it as if the filer was a resident of the city.

I

InnovativeTaxAuthor

Level 4

Yeah...several clients forwarded me the letter, as well.

I would keep watching the news (local to NYC) this is going to get saucy!

Change the law after instructions for preparation outline something different?

To be continued.....

J

Julie0031

Level 2

I had a client forward me a letter from NYC as well. the letter claims that the STAR credit has not been allowable since 2016. Besides the fact that ProSeries automatically did the calculations I did not see anything in the NYC-1127 instructions to substantiate this claim.

I'm going to contact Intuit.

Any suggestions of how to handle this?

Thanks

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