Form IT-219 Instructions: Credit for New York City Unincorporated Business Tax (Tax Year 2025)

Form IT-219 is the New York State form that lets certain individuals, estates, and trusts claim a credit against their personal income tax for Unincorporated Business Tax (UBT) paid to New York City. If you run a sole proprietorship or are a partner in a partnership that does business within the five boroughs, you may already be paying both city UBT and state income tax on the same earnings. This credit exists specifically to reduce that overlap, so understanding how it works can make a real difference on your return.

The instructions document, IT219I, walks taxpayers through every line of the actual IT-219 credit form. It’s published by the New York State Department of Taxation and Finance and updated for the 2025 tax year, reflecting current income thresholds and calculation methods. Unlike some newer state forms, IT-219 has no fillable digital fields — you’ll need to print it out and complete it by hand before attaching it to your New York State return.

Who Needs to File Form IT-219

This form is relevant if you meet a few specific conditions. First, you must be subject to the New York City Unincorporated Business Tax, which generally applies to unincorporated businesses — sole proprietors and partnerships — earning income within NYC. Second, you must also be a New York State resident or nonresident/part-year resident filing a personal income tax return that includes that same business income.

Partners in a partnership often deal with this credit alongside other partnership reporting obligations. If you’re already working through partnership-level filings, it’s worth reviewing the IT-204-I instructions for the New York Partnership Return, since UBT credit eligibility often ties directly back to how partnership income was reported on IT-204 or IT-204-IP.

Nonresidents who conduct business in New York City but live outside the state face an additional layer of complexity, since they also need to allocate business income properly between New York and other jurisdictions. If that applies to you, the IT-203-A Business Allocation Schedule instructions are a useful companion resource, since allocation figures calculated there can affect the numbers you bring over to IT-219.

When You’d Use This Credit

You’d use Form IT-219 when preparing your annual New York State income tax return for any year in which you paid UBT to New York City on business income that’s also being taxed at the state level. The credit is nonrefundable, meaning it can reduce your state tax liability but won’t generate a refund beyond what you owe. The instructions detail how to calculate the credit based on your UBT liability and your New York adjusted gross income, including specific worksheets for figuring the allowable amount when income falls within certain phase-out ranges.

It’s also worth noting that this credit is distinct from other city-related filings, such as those required for cooperative housing arrangements. If your income situation involves a co-op, the guide to Form TP-588 for Cooperative Housing Corporation Information Returns explains a completely separate reporting requirement that some taxpayers confuse with UBT-related credits.

How to Get and Complete the Form

The IT219I instructions and the accompanying IT-219 credit form are available directly from the New York State Department of Taxation and Finance website as a PDF. Since the form isn’t digitally fillable, print a copy, gather your UBT payment records and business income figures, and complete each line by hand using the calculation tables provided in the instructions.

Once finished, attach the completed IT-219 to your New York State personal income tax return (Form IT-201 or IT-203, depending on your residency status). Keep a copy along with your UBT payment documentation in case the Department of Taxation and Finance requests verification later. Double-check your math against the worksheets in the instructions booklet, since errors in the credit calculation are one of the more common reasons these claims get delayed or adjusted during processing.