Drake Tax - NYC-1127 Calculation Update (2025)

The New York City Department of Finance (NYC DoF) has made changes to the calculation of Form NYC-1127 related to certain school tax credits.

Form NYC-1127 filers are no longer permitted to claim the following credits on Schedule B:

• Line A1 – NYC School Tax Credit (fixed amount)

• Line A2 – NYC School Tax Credit (rate reduction amount)

The 2025 NYC-1127 forms and instructions had not been updated to reflect these changes. The NYC DoF has indicated that revised forms, instructions, and specifications are being prepared for tax year 2025 and future 2026 filings.

We are monitoring for additional clarification and will update the software as needed once official guidance and specifications are released by NYC DoF.

Additional information is expected to be posted on the NYC DoF website in the coming days. This article will be updated with more information as it becomes available.