New York State tax implications of the federal CARES Act
The federal Coronavirus Aid, Relief and Economic Security Act (CARES ACT) and the Consolidated Appropriations Act, 2021, contained a number of tax provisions that impact the computation of taxable income, modify eligibility for certain tax credits, and provide assistance to taxpayers and businesses affected by COVID-19.
New York State follows the federal tax treatment resulting from some of these federal provisions and they will automatically be reflected in the New York State income tax computation. However, others require state-specific adjustments on the New York State income tax return.
Below are questions and answers regarding New York State’s treatment of some of the most high-profile items. These and other provisions that require state adjustments are explicitly addressed in tax form instructions, such as Form IT-558-I, New York State Adjustments due to Decoupling from the IRC. See Current year forms by form number to view the 2020 forms and instructions.
Generally, if a federal provision is not specifically addressed in the New York State form instructions, it means no separate adjustments are necessary at the state level.
Additional information
- Form IT-558, New York Adjustments due to Decoupling from the IRC, and its instructions
- Form IT-201, Resident Income Tax Return, and its instructions
- Form IT-203, Nonresident and Part-Year Resident Income Tax Return, and its instructions
- Income tax highlights for 2020