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New York Issues Formal PPP Guidance for Personal Income Tax Purposes

Updated as of 02-02-2021: New York has updated their Frequently Asked Questions to clarify their guidance regarding New York State’s conformity to Federal treatment of the PPP to include corporations as well.

On January 13, 2021, New York has issued formal guidance on their website in regards to the state’s treatment of the Paycheck Payment Program (“PPP”) for personal income tax purposes. New York State has clarified that it will follow the federal treatment of the PPP. If the forgiven loan is excluded from federal adjusted gross income it is also excluded from New York adjusted gross income. Similarly, if the expenses related to the forgiven loan are deducted in computing federal adjusted gross income, these deductions are automatically excluded from New York adjusted gross income. The Department has not yet issued guidance on the State’s conformity to the tax treatment of PPP forgiveness for corporate taxpayers, but we anticipate that the Department will issue such guidance shortly. For additional information, please see the New York State website for updates: https://www.tax.ny.gov/pit/cares-act-faq.htm.


Previously published article on 01-15-2021

On January 13, 2020, New York has issued formal guidance on their website in regards to the state’s treatment of the Paycheck Payment Program (“PPP”) for personal income tax purposes. New York State has clarified that it will follow the federal treatment of the PPP. If the forgiven loan is excluded from federal adjusted gross income it is also excluded from New York adjusted gross income. Similarly, if the expenses related to the forgiven loan are deducted in computing federal adjusted gross income, these deductions are automatically excluded from New York adjusted gross income. The Department has not yet issued guidance on the State’s conformity to the tax treatment of PPP forgiveness for corporate taxpayers, but we anticipate that the Department will issue such guidance shortly. For additional information, please see the New York State website for updates: https://www.tax.ny.gov/pit/cares-act-faq.htm.

Authors: Jonathan Weinberg,  J.D., LL.M. | jweinberg@withum.com, Zhoudi Tang, CPA | ztang@withum.com

If you have questions relating to this revenue ruling, please reach out to your Withum tax advisor.

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