Thursday, December 19, 2013
WHAT'S NEW FOR NEW YORK INCOME TAXES FOR 2013
The New York State Department of Taxation and Finance tells us that the 2013 Form IT-201 (resident income tax return) and IT-203 (non-resident and part-year resident income tax return) “will not be available until sometime in January”. However the 2013 instruction packages for both forms are available online – click here for the IT-201 instructions and here for the IT-203 instructions.
Here is what is new for New York State individual income tax returns for 2013 -
· While the actual tax rates have not changed, for the first time the New York State standard deduction and tax rate schedules have been indexed for inflation. And special tax calculations are required if the New York AGI is more than $102,900, the original $100,000 amount indexed for inflation.
· If you have a balance due on your IT-201 or IT-203 and you are paying the tax by check you now must complete and submit the new IT-201-V ‘Payment Voucher for Income Tax Returns”. The IT-201-V is used for both IT-201 and IT-203 payments.
· Same-sex legally married couples must now file their NY state returns using the married filing status rules. Under New York’s “Marriage Equality Act”, which took effect on July 24, 2011, all marriages, whether between same-sex couples or different-sex couples, are treated equally under the laws of New York. For all taxes administered by the NYS Tax Department, any references in the Tax Law or department documents to “spouse “or “married individual” includes a person in a marriage with a same-sex spouse.
· The return of the “Pease” reduction of federal itemized deductions is reflected in the calculation of the New York itemized deduction.
There is a new credit for “alternative fuels and electric vehicle recharging property” and some changes to existing credits and some new and revised “income modifications” – but none of these affect my clients, or most NY resident and non-resident filers.
The “What’s New for 2013” section of the instruction booklets indicate that New York has a new Web File option, which will allow most New York filers to submit their income tax returns electronically via the Tax Department’s website free of charge (without purchasing flawed and expensive tax preparation software?) - similar, or so it seems, to the NJWebFile system. However I have not found any specific information on this new option on the Department website. I expect I will learn more about this at the January NJ-NATP state tax seminar, which includes a presentation on New York State updates.
I will let you know when the 2013 forms become available.