New York Requesting IT-558 After Return Filed

[prsauer]

I filed my 2022 New York State Taxes using Turbo Tax.

Today I received in the mail a request from the department of taxation and finance to send a copy of Form IT-558.

In reading through the instructions on the Form from the NYS tax website it doesn't look like it applies to me. I did not receive Forms IT-204-CP or IT-204-IP. Although I had miniminal self employment income on a 1099 NEC, I am not a S Corportation. I am also not the beneficiary of a trust.

In short I have no ability to fill out the IT-558 because none of the codes apply to me. 

Any ideas why NYS would request the form, and if needed why Turbo Tax would not generate it?

[HopeS]

There are various reasons why Form 568 might be needed.

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
  • 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 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). 

@prsauer 

[prsauer]

Thank you Hope.

My guess is that it is related to the $300 charitable deduction, although nowhere on the form instructions does it give a code for that to be entered into the form.

I called the NYS tax office and spoke to a helpful agent who indicated that they were getting a lot of phone calls like mine. His solution was to go to the NYS tax website and upload a memorandum indicating that none of the conditions on the instructions applied to me.

Now I wait to see what kind of adjustments NYS will make.