Tax season can be a hectic time – dealing with forms, figuring out deductions, and preparing your taxes. But don’t worry, we’ve got you covered with our tax overview in New York. In this article, we’ll discuss the basics of New York state tax law, including what income is taxable, how to claim deductions, and more. So whether you’re a first-time taxpayer or you’re looking for a refresher course, read on for all the information you need to know about New York state taxes!
What is New York State Taxation?
New York State taxation is a complex and comprehensive system. The following overview will provide you with the essential information you need to understand the state’s tax laws and filing requirements.
Taxation in New York State is based on federal, state, and local taxes. Federal taxes include income, social security, and Medicare taxes. State taxes include income, property, sales, excise, and business franchise taxes. Local taxes include real estate transfer taxes, personal property taxes, etc.
There are several types of tax returns that you must file each year with the New York State Department of Taxation and Finance (DTF). These returns are known as Form 1040EZ (individual), Form 1040A (married couples filing jointly), or Form 1040 (single individuals). You may also need to file additional forms depending on your particular situation. Generally speaking, however, all taxpayers must file an annual return showing their income, deductions, exemptions and credits.
Whenever you make a payment or deliver any property or money to the government for taxation purposes – whether it be federal, state or local – you are obligating yourself to pay the relevant tax amount as agreed upon by all three levels of government. This is often referred to as “the triple withholding.” Taxpayers who have assets in more than one jurisdiction should carefully consider which withholding payments they make based on their specific circumstances in order to minimize tax liability overall.
If you have questions about how New York State taxation affects your specific
Federal Taxation in New York State
Federal taxation in New York State is based on the federal tax code, which sets out the rules for income, estate, gift, and corporate taxation. Some special provisions apply to residents of New York State, however. For example, New York State imposes its own personal income tax, separate from the federal income tax. There are also additional net investment income taxes and a luxury goods tax that apply to certain individuals and businesses.
There are several other taxes that may be relevant to residents of New York State. Sales taxes include a general sales tax (GST) and local sales taxes. Property taxes are assessed by counties and municipalities throughout New York State. Other important taxes include the use tax, which applies to transactions involving goods used in interstate or foreign commerce; the business franchise tax; and the excise tax on gasoline, diesel fuel, natural gas, oil-based products, and tobacco products.
In addition to federal taxes, New York State levies its own income tax (for individuals), estate tax (for individuals who leave behind an estate worth more than $5 million when they die), gift tax (all gifts over $13,000 are subject to gift taxation), corporate income tax (for corporations organized under New York law), payroll taxes including social security and Medicare contributions (both employers and employees must pay these taxes), surtaxes on wealthy taxpayers (the top 2 percent of earners pay an additional 0.35 percent surtax on their taxable income), municipal corporation occupation/employment taxes
New York State Tax Breaks for Individuals and Businesses
What are the New York State tax breaks for individuals and businesses?
The following are the major New York State tax breaks for individuals and businesses. Please note that these are only a general overview; for more specific information, please consult your accountant or tax advisor.
-The earned income credit (EIC) is a tax credit designed to help low-income workers by reducing their taxes. The EIC is available to both employees and self-employed individuals. The amount of the credit depends on your income and marital status. For 2018, the EIC is worth up to $6,533 per individual, with a maximum credit of $12,700.
-A dependent care credit allows parents to reduce their taxable income by up to $3,000 per dependent child under age 17 who is attending school full time (or part time if enrolled in a recognized summer camp). This credit can also be claimed by grandparents who provide primary care for grandchildren under age 13 while the grandchildren are attending school full time (or part time if enrolled in a recognized summer camp).
-The saver’s credit may be worth as much as $2,000 per person if you make contributions to an eligible retirement plan such as an employer sponsored 401(k) or 403(b).
New York State Tax Rates
What are the New York State tax rates?
The New York State tax rates are as follows:
New York City: 7.85%
School Districts and Other Local Governments: 1.5% (plus .15% surtax)
Retirement Income: 6.55% (plus .45% surtax)
How much does an individual need to pay in New York State taxes?
An individual who is earning $50,000 a year will need to pay $2,811 in New York State taxes. An individual who is earning $100,000 a year will need to pay $7,893 in New York State taxes.
How to File Your Taxes in New York State
If you are a resident of New York State, you are required to file taxes with the New York State Department of Taxation and Finance (DTF). The filing deadline for most residents is April 15. However, there are some exceptions, including those who are members of the military or prison inmates.
The DTF has a variety of online resources to help you prepare your taxes. You can use their website to search for information on tax rates, deductions, and credits. You can also download forms and publications from their website.
To file your taxes electronically with the DTF, you need to register with TurboTax or H&R Block. Once you have registered, TurboTax will send you an electronic filing kit that you can use to prepare your taxes.
If you choose not to use either TurboTax or H&R Block, you can still file your taxes electronically by using the free File Your New York Taxes online service provided by the DTF. This service requires that you register first before using it.
Once you have filed your taxes, be sure to get your refund as soon as possible. The average processing time for a state tax return is approximately four weeks. However, this time may vary depending on the type of return and the number of returns filed in that year by residents of New York State.