Form IT-558 is a new form for tax year 2020, which adjusts your federal adjusted gross income. Certain items this year are being added back and subtracted from your federal adjusted gross income. It is similar to previous year Form IT-225, except that it is included items that cover the CARES act.
Although I am not certain which apply to your particular situation, I have listed two of the most common reasons of why Form IT-558 would be added to your NYS return.
- Covid-19 related distributions from a retirement plan
- For distributions taken from retirement plans, NY is requiring that the entire amount be added back to federal AGI, and then taxpayers will subtract out any taxable amount already included in federal adjusted gross income (AGI).
- Adjustments for charitable contributions
- Created as a new charitable deduction for those taking the standard deduction on their federal return of up to $300. This amount is required to be added back to income for NY purposes.
There are many other reasons that would require you to file this new NYS form. You can read more about Form IT-558 here: New York tax law update: What you need to know
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