Important Update on New York Farm Employer Overtime Tax Credit Refunds

After filing their 2025 tax returns, Farm Credit East learned that many farm taxpayers received an adjustment notice from New York State reducing the amount of their requested refund. The adjustments stemmed from a disallowance of the Farm Employer Overtime Tax Credit claimed on form CT- or IT-661. 

The Farm Credit East team engaged with key contacts at the New York State Department of Agriculture and Markets and the Department of Taxation and Finance to elevate the issue and advocate for a timely resolution on behalf of our customers. This week we received the following statement from the New York Department of Tax and Finance and wanted to ensure our customers were informed: 

If you received a notice from the NYS Tax Department adjusting your farm employer overtime credit (Form CT or IT-661), it may have been issued in error. The NYS Tax Department will send corrected notices, including additional refund amounts, if applicable, directly to affected taxpayers. No action is needed at this time.

We will continue to monitor the situation and share additional information as it becomes available. If you have questions, please contact your Farm Credit East representative.