refresher on new york state resident income tax l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Refresher on NEW YORK STATE RESIDENT INCOME TAX PowerPoint Presentation
Download Presentation
Refresher on NEW YORK STATE RESIDENT INCOME TAX

Loading in 2 Seconds...

play fullscreen
1 / 64

Refresher on NEW YORK STATE RESIDENT INCOME TAX - PowerPoint PPT Presentation


  • 159 Views
  • Uploaded on

Refresher on NEW YORK STATE RESIDENT INCOME TAX. Computation of Taxable Income New York State Credits Sales Tax, Star Rebates TaxWise Tips E-filing NYS Based on NY-3 Training slides Edited for NY-4 Geneva workshop. November 2008 Geneva Instructors’ Workshop. NEW YORK STATE TAX RETURNS.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Refresher on NEW YORK STATE RESIDENT INCOME TAX' - iram


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
refresher on new york state resident income tax
Refresher onNEW YORK STATE RESIDENT INCOME TAX
  • Computation of Taxable Income
  • New York State Credits
  • Sales Tax, Star Rebates
  • TaxWise Tips
  • E-filing NYS

Based on NY-3 Trainingslides

Edited for NY-4 Geneva workshop

November 2008 Geneva Instructors’ Workshop

new york state tax returns

NEW YORK STATE TAX RETURNS

This presentation applies to full-year resident tax returns.

REF. NYS PUB 80; IT-201 INSTRUCTIONS

NY-3 NYS TRAINING

nys filing requirements
NYS FILING REQUIREMENTS

You must file a NYS return if you

Are required to file a federal return, or

If your Federal AGI plus NYS additions is $4,000* or more, or

You WANT to claim a REFUND or CREDIT

*$3,000 if claimed as a dependent

NY-3 NYS TRAINING - 2008

new york state income tax flow
NEW YORK STATE INCOME TAX FLOW

Based on Federal Return

Federal AGI plus NYS Additions minus NYS Subtractions = NYS AGI

NYS AGI minus Deductions minus Exemptions = Taxable Income

Taxable Income -> (tax tables) -> Tax on Income

Tax - non-refundable credits + designated contributions + sales tax = Total tax (not less than zero)

Total Tax – refundable credits – payments = Tax due or refund

NY-3 NYS TRAINING - 2008

common additions
Common Additions
  • Mandatory contributions to state 414H retirement plan

(Coded as 414HSUB in box 14 of W2)

  • Interest on non-NY municipal bonds or funds

November 2008 Geneva Instructors’ Workshop

common retirement subtractions
Common Retirement Subtractions

Retirement distributions received after age 59-1/2 from Private Pensions, non-NY government pensions, IRAs or other qualified plans. - $20,000 maximum exclusion per Taxpayer

Retirement distributions from Federal, New York State, and Local Government Pensions – no limit

Railroad retirement pension – no limit

Social Security Income – no limit

NY-3 NYS TRAINING - 2008

other common subtractions
Other common subtractions
  • Income tax refunds included as income
  • Interest on Treasury Debt Instruments – no limit
  • Contributions to NYS 529 college savings plan ($5000 max; $10,000 MFJ)

November 2008 Geneva Instructors’ Workshop

qualified retirement income
“Qualified” Retirement Income
  • To qualify for the exclusion, the income must be based on employment
    • Pension, IRA, 401(k), 403(b), 457
  • Commercial annuities funded from savings are not qualified
  • If beneficiary, see special rules
    • Age that deceased would have been
    • Multiple beneficiaries also split the $20K limit

November 2008 Geneva Instructors’ Workshop

pension income exclusion in taxwise 1099r screen
PENSION INCOME EXCLUSION IN TAXWISE1099R SCREEN
  • Check Box 1 For Private Pension

NY-3 NYS TRAINING - 2008

pension income exclusion in taxwise 1099r screen10
PENSION INCOME EXCLUSION IN TAXWISE1099R SCREEN
  • CheckBox 2 For Public Pension

NY-3 NYS TRAINING - 2008

pension income exclusion in taxwise 1099r screen11
PENSION INCOME EXCLUSION IN TAXWISE1099Rscreen
  • Check Box 4 For RR Retirement

NY-3 NYS TRAINING - 2008

deductions and exemptions
Deductions and exemptions
  • If taxpayer itemized on federal, may either itemize or take standard deduction on state
    • Must adjust federal itemized number to subtract out any income tax deduction
  • If taxpayer did not itemized on federal, must take standard deduction on state
  • No personal exemptions
  • Dependent exemptions are $1,000 each

November 2008 Geneva Instructors’ Workshop

nys standard deductions
NYS STANDARD DEDUCTIONS

SINGLE (Dependent)

SINGLE

MARRIED – JOINT

MARRIED – SEPARATE

HEAD HOUSEHOLD

QUALIFYING WIDOW(ER)

$3,000

$7,500

$15,000

$7,500

$10,500

$15,000

NY-3 NYS TRAINING - 2008

ny state credits is it really free money
NY State Credits Is it really free money?
  • Some credits are refundable
  • Some credits are non-refundable
    • Use it or loose it
    • Use it or carry it forward
  • Some credits offset others
  • Some credits are for full-time residents only

November 2008 Geneva Instructors’ Workshop

ny state credits how do i do it
NY State Credits How do I do it?
  • Some credits require separate forms
  • Some credits require an IT-201-ATT
  • Some credits may be filed alone
  • Some credits may not be e-filed
    • TaxWise limitations (e.g. IT-250)
    • NYS limitations (e.g. IT-253)

November 2008 Geneva Instructors’ Workshop

review of selected ny credits
Review of selected NY Credits
  • Credits most likely to be encountered by volunteer preparers not in NYC
  • Listed in numerical form order

November 2008 Geneva Instructors’ Workshop

it 112r resident credit
IT-112RResident Credit
  • Credit for taxes paid to another state, locality, or DC on income which is also taxed by New York.
  • Form 112-C is equivalent for Canada
  • Non-refundable
  • Training required at local level for nearby states to be in scope

November 2008 Geneva Instructors’ Workshop

it 201 line 40 household credit
IT-201 (line 40)Household Credit
  • Non-refundable credit based on AGI, filing status, and size of household
  • Automatically calculated or use table in instructions

November 2008 Geneva Instructors’ Workshop

it 209 non custodial earned income credit
IT-209Non-custodial Earned Income Credit
  • Special EIC for a parent who ...
    • Doesn’t get the regular EIC because their child does not live with them, and
    • Is being forced to pay child support through a Support Collection Unit*, and
    • Is current on the payments

*NYS Office of Temporary and Disability Assistance will “automatically” certify to NYS Income Tax

November 2008 Geneva Instructors’ Workshop

non custodial earned income credit continued
Non-custodial Earned Income Credit(continued)
  • Qualifications similar to EIC plus ...
  • Ordered to pay Child Support through a support collection unit
    • For at least ½ year
    • Must be up-to-date
  • Taxpayer at least 18 yrs of age
  • Qualifying Child Must be under 18
  • Qualifying child cannot have lived with taxpayer
  • Additional Credit available to NYC taxpayers
non custodial earned income credit continued21
Non-custodial Earned Income Credit(continued)
  • Credit is:
    • 20% of Fed EIC that would have been allowed if the child lived with you, or
    • 25% of Fed EIC allowed for no Qualifying children, whichever is greater
  • Refundable credit
it 213 empire state child credit
IT-213Empire State Child Credit
  • NY version of the federal child credit
    • Full Year Resident NYS
    • Must have Federal Child Tax Credit
    • NYS Qualifying Child, Age 4-16
  • Refundable credit is greater of:
    • 33% of Fed Credit for NYS Qualifying child
    • $100 per Qualifying Child
it 214 real property tax credit
IT-214REAL PROPERTY TAX CREDIT
  • Refundable Credit
  • Available to owners or renters
  • Property Must Be Subject to RealEstate Tax
  • Household income L/E $18,000
household income criteria
Household IncomeCriteria
  • Household income must be <= $18,000
  • Includes everyone living in household
  • Includes cash welfare, grants, etc
  • Includes non-taxable portion of pensions, IRAs, etc
  • Includes social security less Medicare deductions

November 2008 Geneva Instructors’ Workshop

credit for owners
Credit for owners
  • FMV of property must not exceed $85,000
  • Credit is based on property taxes paid, or optionally based on taxes paid plus property taxes not paid due to senior exemption

November 2008 Geneva Instructors’ Workshop

credit for owners28
Credit for owners
  • Calculate with and without Exemption And Use Larger Credit
calculating the taxes not paid
Calculating the taxes not paid
  • For each tax ...
    • Calculate the reduction in assessed value due to senior exemption for that tax type
    • Multiply reduction by tax rate
  • Following example shows a simple case

November 2008 Geneva Instructors’ Workshop

example part 1
Example – part 1
  • Full Market Value $75,551
  • Assessed Value $30,500
  • Aged CTS $6,125 (20%)
  • Sr STAR $20,190 (66%)
example part 2 town
Example – part 2 (town)
  • Assessed Value $30,500
  • Aged CTS Exemption $6,125
  • Town Taxable Value $24,375
  • Town Tax Rate $23.17 per $1000
  • Town Tax Exempted for 65 Yr Old $6,125*23.17/1000=$141.92
example part 3 fire
Example – part 3 (fire)
  • Assessed Value $30,500
  • Aged CTS Exemption $6,125
  • Fire Dist Taxable Value $30,500
  • Fire Dist Tax Rate $5.53 per $1000
  • Fire Dist Tax Exempted= $0.00*5.53/1000=$0.00
example summary
Example - summary
  • Town Tax Paid (inc fire) $734
  • School Tax Paid (?) $230
  • Total Tax Paid $964
  • Town Tax Exempted $142
  • School Tax Exempted (?) $330
  • Total Tax Exempted $472
owners credit
OWNERS CREDIT
  • Credit with exemption $179
  • Credit without exemption $122
beware of multiple exemptions
Beware of multiple exemptions

November 2008 Geneva Instructors’ Workshop

and sometimes it doesn t matter because the credit is limited
And sometimes it doesn’t matter because the credit is limited

November 2008 Geneva Instructors’ Workshop

it 215 earned income credit regular
IT-215Earned Income Credit (regular)
  • Form IT-215
    • 30% OF FEDERAL CREDIT
    • Automatic in Taxwise
    • Additional Credit available to NYC taxpayers
  • Refundable Credit
it 216 child and dependent care
IT-216Child and Dependent Care
  • Flows from information on Federal form 2441
  • Credit is 20% to 110% of potential federal credit
  • New York Credit is refundable
  • Make sure IT-216 is present even if Federal 2441 is not.

November 2008 Geneva Instructors’ Workshop

it 245 volunteer firefighter and ambulance worker credit
IT-245Volunteer Firefighter and Ambulance Worker Credit
  • Refundable credit
  • Full year residents only
  • $200 per volunteer
    • $400 if MFJ and both volunteer
  • Must be active for entire year
  • Cannot claim credit if:
    • Real Property Tax Exemption for volunteer service
it 249 long term care insurance credit
IT-249Long Term Care Insurance Credit
  • Credit of 20% of actual cost of long term care insurance
  • Cost is not limited by federal caps
  • Credit is non-refundable, but may be carried forward if not used
  • TaxWise will calculate automatically if premiums are entered using 1040 Schedule A detail worksheet
1040 schedule a detail worksheet
1040 Schedule A Detail Worksheet

Total LT Care Ins Cost

it 250 external defibrillator credit
IT-250External Defibrillator Credit
  • Non-refundable Credit
  • Credit = Cost up to $500/unit
  • Multiple Purchases Allowed,

but not for resale.

Problem – TaxWise does not have form IT-250

it 250 external defibrillator credit43
IT-250External Defibrillator Credit
  • Taxwise – no Form IT-250
  • Go to IT-201A, Section B:
    • Enter code 250 and correct amount.
    • Program takes it from there.
don t do this
Don’t do this !

Defibrillator Cost

how to file an it 250
How to file an IT-250
  • Find an IT-250 form somewhere
  • Fill it in manually
  • Put the credit number and cost on the correct line of the IT-201-ATT
  • Print out the NY return (don’t forget IT-2 and IT-1099-R if needed)
  • Mail it in

November 2008 Geneva Instructors’ Workshop

it 258 nursing home assessment credit
IT-258Nursing Home Assessment Credit
  • Refundable Credit for Assessment charged to Nursing Home by state – passed on to resident
  • Must be separately stated on bill to resident
  • Must be paid out-of-pocket
  • Credit goes to person or persons who paid charge
it 272 college tuition credit
IT-272College Tuition Credit
  • Refundable credit or itemized deduction for qualified undergraduate tuition and fees ($10K per student max)
  • Does not have to be full time
  • Does not have to be degree program
  • Taxpayer, spouse or dependent

November 2008 Geneva Instructors’ Workshop

tuition credit option
Tuition Credit Option
  • Credit based on total qualified expenses for all students ($10K max each)
  • Expenses less than $200 - full credit
  • Expensesbetween $200 and $5,000 - $200 credit
  • Expenses over $5,000 – 4% credit ($400 max)

November 2008 Geneva Instructors’ Workshop

tuition itemized deduction option
Tuition Itemized Deduction Option
  • Allows tuition to be deducted on NYS form
  • Must have itemized on federal return
  • May deduct qualified expenses for all students ($10K total max)
  • Which is better – credit or deduction ??

November 2008 Geneva Instructors’ Workshop

this and that
This and that ...
  • Help!
  • Star Rebates
  • Sales Tax
  • TaxWise Tips
  • NY E-filing (bye-bye PINs)

November 2008 Geneva Instructors’ Workshop

star rebate no 1099 g will be issued
STAR REBATENo 1099-G will be issued
  • Is the STAR rebate amount taxable?
  • Generally no.
    • If Taxpayer itemizes Deductions and claims property taxes paid, must deduct STAR rebate from this deduction
    • Same for enhanced standard deduction
    • Rebate greater than property taxes, must show difference as “Other Income”.
federal to new york state taxwise data flow
Federal to New York State TaxWise data flow

Most data carries from Federal to NYS

All Federal Income Lines

All Federal Adjustments

Itemized Deductions

NYS Itemized deductions based on Fed

Some credits are Automatic Carryover

NY-3 NYS TRAINING - 2008

using ny tax wise
USING NY TAX WISE
  • Must enter on NYS tax form:
    • County of Residence

School District Name

School District Code

  • Residency or Presence of Living Quarters in NYC
    • Complete lines E and F IT-201, pg 1
    • If resident of NYC, Taxwise will calculate NYC income tax
using tax wise must enter on nys tax form
USING TAX WISEMust enter on NYS tax form

School District Name

  • County of Residence

School District Code

NY-3 NYS TRAINING - 2008

school tax codes
SCHOOL TAX CODES

NY-3 NYS TRAINING - 2008

using tax wise must enter on nys tax form59
USING TAX WISEMust enter on NYS tax form

Residency or Presence of Living Quarters in NYC

NY-3 NYS TRAINING - 2008

changes to ny e file
Changes to NY e-file
  • From Pub 84 (issued Nov 6, 2008) ...
  • Taxpayer PIN, Spouse PIN and ERO PIN have been eliminated. Instead, New York State is using new e-file Signature Declaration Check Boxes.
  • The TR-579 and TR-579.1 have been revised to reflect the above changes.

November 2008 Geneva Instructors’ Workshop

new tr 579 top

No DCN or SSNs

New TR-579 (top)

November 2008 Geneva Instructors’ Workshop

new tr 579 bottom
New TR-579 (bottom)

November 2008 Geneva Instructors’ Workshop

slide64
AARP procedures for completing and processing TR-579 to be provided

November 2008 Geneva Instructors’ Workshop