My employer is part of the START-UP NY program, which allows companies to operate tax-free. Do I have to do anything to get this benefit when I file my state tax return?

[ramsgusom]

My employer is part of the START-UP NY program, which allows companies to operate tax-free. Do I have to do anything to get this benefit when I file my state tax return?

Would this be a subtraction on my state tax return?

[Vanessa · Accepted solution]

Yes, this would be an exclusion from your income if the below information applies

Q: Is an employee of an approved START-UP NY business entitled to a full 10-year benefit period for the personal income tax wage exclusion benefit?
A: The 10-year benefit period is linked to the START-UP NY business, not individual employees. Therefore, an eligible employee will only receive 10 years of the wage exclusion benefit if he or she is hired prior to July 1st in the START-UP NY business’s first year of participation in the program and remains employed for the entire 10-year duration.

https://esd.ny.gov/startup-ny-faqs

(Edited 2/11/19 @ 1:34PM EST)

[ramsgusom]

I told my EA last year that my company was part of the START-UP program, and he did a subtraction of the income when he filed the state tax return? Was this wrong???

[Vanessa]

See revised answer

[ramsgusom]

Thanks a lot. Is there supposed to be some kind of code on my W2 that confirms this? On turbotax, I see that START-UP Ny has a code for box 14 on the W2, but I do not see this code mentioned on my W2.

[Vanessa]

Yes, you should have it on there as the amount excluded is different for the first five years than the second 5 years. Exclusion is capped at $200,000 after the first 5 years. If you do not have a code, you can ask your employer for a corrected W2 with the code.

[Vfingar]

Does TurboTax ask a specific question regarding Start up NY? My employer is a part of this and I think I may have missed entering the “SNY” code. HELP!

[DaveF1006]

You may be eligible for this benefit. Please review this Turbo Tax link for further information. To get credit, look at your W2 in Box 14. and for description would be SNY,and then put in the amount that is reported on your W2 and in third box is a drop down that you would select that is entitled SNY-START UP NY-wages. if this is done correctly, your NY State IT-201 line 31 will show a subtraction for the amount you recorded in Box 14.  That amount is populated on the NY form IT-225, which has a code of 101.

You do not generate these forms  If you reported correctly the way that it is recorded on the W2, Turbo Tax does this for you automatically. I tested this in my sample program and it works.