NASSAUSUFFOLK

Is there an adjustment that can be made to offset the reduction of employee benefits when preparing the NYS return for the shareholder?
Example: Subchapter S corp has a health insurance credit of $3000. Employee benefits are reduced by $3000 which increases the net income. The K-1 for the shareholder has the increased net income. This $3000 amount then gets included in the taxable income for New York State purposes even though there is no credit available for New York. 
Does anyone know if there is an adjustment available for this?
Thank you.
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Karen Meyerowitz
CPA
MEYEROWITZ & MEYEROWITZ, CPAs
Merrick NY
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Message From: Ross Kass

As far as Steve and I know, there is no adjustment available for this.  It is the equivalent of taking a 179 deduction on a car.  NYS does not allow the 179 and it does not adjust for on the disposition.

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Ross Kass & Steve Greenberg
JABLONS, KASS & CO., CPAs PC
Melville NY
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Original Message:
Sent: 02-25-2013 11:18
From: Karen Meyerowitz
Subject: Health Insurance Credit Form 1120S

Is there an adjustment that can be made to offset the reduction of employee benefits when preparing the NYS return for the shareholder?
Example: Subchapter S corp has a health insurance credit of $3000. Employee benefits are reduced by $3000 which increases the net income. The K-1 for the shareholder has the increased net income. This $3000 amount then gets included in the taxable income for New York State purposes even though there is no credit available for New York. 
Does anyone know if there is an adjustment available for this?
Thank you.
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Karen Meyerowitz
CPA
MEYEROWITZ & MEYEROWITZ, CPAs
Merrick NY
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Karen:

Possibly page 23 of the IT-201 instructions "S-24

S-24 Wage and salary expenses allowed

as federal credits but not as federal expenses

If you took a federal credit for which a deduction for wages and

salary expenses is not allowed under IRC section 280C, then

include the amount of those wages you did not deduct on your

federal return."  might apply.

David Rothfeld
DAVID J. ROTHFELD, CPA
Hicksville NY
516-433-2129
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Original Message:
Sent: 02-25-2013 11:18
From: Karen Meyerowitz
Subject: Health Insurance Credit Form 1120S

Is there an adjustment that can be made to offset the reduction of employee benefits when preparing the NYS return for the shareholder?
Example: Subchapter S corp has a health insurance credit of $3000. Employee benefits are reduced by $3000 which increases the net income. The K-1 for the shareholder has the increased net income. This $3000 amount then gets included in the taxable income for New York State purposes even though there is no credit available for New York. 
Does anyone know if there is an adjustment available for this?
Thank you.
-------------------------------------------
Karen Meyerowitz
CPA
MEYEROWITZ & MEYEROWITZ, CPAs
Merrick NY
-------------------------------------------