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March 4, 2025
Question

What is a subtraction modification code?

  • March 4, 2025
  • 1 reply
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On the NY state tax return under Other addition/subtractions Stmt (225): I get the message Sch B Pa rt 2 code is not a valid subtraction code. What does this mean? I can't seem to edit the filed that's at 0.

    1 reply

    March 4, 2025

    On the NY tax return, Form IT-225 is used for reporting modifications to income and expense items - these are adjustments you'd need to make to your federal income for New York state tax purposes.

     

    Schedule B, Part 2 specifically refers to subtractions that flow through to you from partnerships, S corporations, or estates and trusts. These modifications should be reported to you in the statements to your Schedule K-1. 

     

    For more information about what the different codes mean, see the NY Subtraction Modifications Chart.