The City of New York recently changed the ability to claim school-related credits on Form NYC-1127. Here is their communication to taxpayers who claim a credit on NYC-1127 Schedule B lines A1 or A2:
"A credit for the School Tax Relief (STAR) benefit appears on lines A1 and A2 (Schedule B) of the Section 1127 return. STAR has been a credit against the New York State personal income tax since 2016, and it is not allowable as a credit on the Section 1127 return.
"Please do not claim the STAR credit on your Section 1127 return. If you do, your tax filing will be incorrect, and this may impact your refund or balance due.
"If you have questions about how to complete your filing, please contact us at www.nyc.gov/eservices or email 1127help@finance.nyc.gov."
We anticipate Form NYC-1127 changing, and the TaxSlayer Pro programs will be updated after we receive instructions from the NYC Department of Finance.
Additional Information: