DeFreitas & Minsky Accounting Blog

New York State Income Tax Guide for Individual Filers

Posted by thallissey on Feb 6, 2018 10:00:00 AM

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If you live in New York, you must pay state income tax to support municipal services. Although New York State’s personal income tax is structured similarly to the Federal income tax, it has its own tax rates and brackets.

New York State Income Tax Brackets

This progressive eight-bracket system applies to individual taxpayers:

  • 4 percent on the first $8,500 of taxable income
  • 4.5 percent on taxable income between $8,500 and $11,700
  • 5.25 percent on taxable income between $11,700 and $13,900
  • 5.9 percent on taxable income between $13,900 and $21,400
  • 6.45 percent on taxable income between $21,400 and $80,650
  • 6.65 percent on taxable income between $80,650 and $215,400
  • 6.85 percent on taxable income between $215,400 and $1,077,550
  • 8.82 percent on taxable income of more than $1,077,550

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New York State Tax Deductions

Tax deductions reduce the amount of your income that can be taxed by the government. In New York State, the standard deduction is $3,000 for single individuals.

  • You may also claim an exemption deduction of $1,000 for each one of your dependents.
  • If your adjusted gross income is less than $100,000, you may take all of your Federal itemized deductions on your New York State income tax return.
  • If you contribute to New York’s 529 Plan, you can deduct up to $5,000 or the actual amount contributed, whichever is smaller.

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Empire State Tax Credits Worth Exploring

Income tax credits reduce the amount of tax you owe the government. If you are an individual filer in New York, you can save money with one or more of these credits.

Child and Dependent Care

New York State offers you a tax credit if you pay for the care of a child or dependent while you work or go to school. The Child and Dependent Care credit ranges from 20 percent to 110 percent of the Federal credit, depending on the amount of your New York State adjustable gross income.

Noncustodial Parent Earned Income Credit

If you pay child support for a child who does not live with you at least half of the year, you may qualify for the Noncustodial Parent Earned Income Credit. If you are current on child support, you could earn this credit. You can chose whichever of these two numbers is greater:

  • 20 percent of the Federal Earned Income Credit that you could have claimed if the child lives with you.
  • 2.5 times the Federal Earned Income Credit that you could have claimed if you met the eligibility requirement with no children.

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College Tuition

The College Tuition Credit of $400 per student for qualified tuition expenses is available to New Yorkers. However, an itemized deduction of as much as $10,000 per student may provide greater tax savings if you itemized your Federal return.

Earned Income Credit

You can claim the state Earned Income Credit if you have also claimed the Federal credit, and you have invested $3,100 or less of your income. This New York State income tax credit is equal to 30 percent of your allowable Federal Income Credit and is reduced by the amount of any Household Credit you may be allowed.

Household Credit

If you have an adjusted gross income of $28,000 or less, you may qualify for the Household Credit. It ranges from $20 to $90 plus an additional $5 to $15 for each exemption claim on your tax return.

New York State income taxes are due by April 17 this year. If you have any questions about tax planning and preparation, contact a local accountant.

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Topics: Tax Laws, Tax Planning, Tax Returns

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