New York Personal Income Tax examines a wide range of issues dealing with the taxation of individuals in New York. Written by Robert D. Plattner, Esq., N.Y. Taxn. & Fin. Deputy Commissioner, formerly with McNamee, Lochner, Titus & Williams, this Portfolio details the modifications, additions, and subtractions taxpayers must make to their federal income to determine their New York taxable income. It explores the various issues affecting taxation of both New York State residents and nonresidents and details the special allocation rules for nonresidents. In addition, the Portfolio explains available tax exemptions and details the large number of tax credits available to New York State taxpayers.
New York Personal Income Tax also examines taxation of partners, limited liability company members, and S corporation shareholders and discusses taxation of estates and trusts. The New York City personal income tax imposed on City residents is explained in detail.
Finally, this Portfolio describes New York State tax administration, adjudication, and assessment procedures, along with taxpayer remedies and penalties for noncompliance. It also provides several working papers, including:
New York Personal Income Tax allows you to benefit from:
This Portfolio is part of the Premier State Tax Library, a comprehensive series, which covers major state tax transactions and issues with expert, in-depth analysis, and offers commentary on a wide range of multi-state and state-specific taxation topics, including Sales and Use, Corporate Income, Individual Income, Property, Gross Receipts, Limitations on States' Authorities to Tax, Credits and Incentives, Electronic Commerce, Mergers and Acquisitions, Procedure and Administration, Special Industries, and more.
Detailed Analysis
2210.01. OVERVIEW
2210.02. ADJUSTED GROSS INCOME
A. Overview
B. Modifications Increasing Federal Adjusted Gross Income
C. Modifications Decreasing Federal Adjusted Gross Income
D. Depreciation for Property Placed in Service Outside New York in Tax Years 1985–1993
E. Fiduciary Adjustment
2210.03. PERSONAL EXEMPTIONS
2210.04. STANDARD DEDUCTION
2210.05. ITEMIZED DEDUCTIONS
B. Modifications to Federal Itemized Deductions
1. Modifications Reducing Federal Itemized Deductions
2. Modifications Increasing Federal Itemized Deductions
C. Special Reduction to the New York Itemized Deduction
D. Spouses Filing Separate Federal Returns
E. Nonresident Itemized Deductions
2210.06. RATE SCHEDULES
A. Schedules
B. Tax Table Benefit Recapture
C. Unearned Income of Certain Dependents
2210.07. TAX CREDITS
1. Credits Available
2. Order of Credits
3. S Corporation Shareholders
B. Credits
1. Household Credit
2. Earned Income Credit
Content
3. Real Property Tax Circuit Breaker Credit
a. Eligibility
b. Calculation
c. Maximum Credit Limitation
d. Claiming the Credit
4. Child and Dependent Care Credit
a. Child and Dependent Care
b. Empire State Child Care Credit
5. College Tuition Credit
a. Overview
b. Qualified expenses
c. Calculation
d. Refund
e. Itemized Deduction Alternative
6. Long–Term Care Insurance Credit
7. Investment Tax Credit (ITC)
b. Tangible Personal Property and Other Tangible Property
c. Retail Enterprises
d. Historic Barns
e. Carryover of Credit
f. Refund of Credit
g. Credit Recapture
8. Employment Incentive Credit (EIC)
c. Carryover
9. Empire Zone Credits
b. Investment Credit for Manufacturing Businesses
c. Zone Employment Incentive Credit
d. Zone Wage Credit
(1) Overview
(2) Calculation
(3) Carryover
(4) Refund
e. Zone Equivalent Wage Credit
f. Zone Capital Tax Credit
g. Qualified Empire Zone Enterprise (QEZE) Credits
(2) Income Tax Reduction Credit
(3) Real Property Tax Credit for Job Creation
10. Qualified Emerging Technology Company Credits
b. Qualifying Taxpayers
c. QETC Employment Credit
d. QETC Capital Credit
(2) Qualifying investments
(3) Amount of credit
(4) Carryover
(5) Refund
(6) Recapture
e. QETC Facilities, Operations and Training Credit
(2) Eligible Taxpayers
11. Gross Receipts Tax Credit
b. Qualifying Businesses
c. Administration
d. Carryover
e. Sunset
12. Transportation Access Credit
c. Refund
d. Recapture
13. Agricultural Property Credit
14. Solar Energy Credit
15. Alternative Fuel Credit
b. Electric Vehicles
c. Clean Fuel Vehicle Property
d. Clean Fuel Vehicle Refueling Property
e. Qualified Hybrid Vehicles
f. Carryover, Recapture
16. Fuel Cell Electric Generating Equipment Credit
17. Petroleum Tank Replacement Credit
18. Green Building Credit
19. Disability Employment and Transportation Credits
a. Disability Employment Credit
b. Disability Transportation Credit
20. Low Income Housing Credit
21. Automated External Defibrillator Credit
22. Resident Credit for Income Tax Paid Other States
b. Limitations
23. Resident Credit Against the Separate Tax on Lump–Sum Distributions
24. Accumulation Distribution Credit
25. Claim of Right Income Repayment
26. Conservation Easement Credit
27. Brownfield Tax Credits
a. Brownfield Redevelopment Tax Credit
b. Remediated Brownfield Property Tax Credit
c. Environmental Remediation Insurance Credit
28. Empire State Film and Commercial Production Credits
a. Empire State Film Production Credit
b. Empire State Commercial Production Credit
29. Security Officer Training Credit
30. Biofuel Production Credit
31. Volunteer Firefighters' and Ambulance Workers' Credit
32. School Tax Relief (STAR) Tax Credit
33. Home Heating System Credit and Clean Heating Fuel Credit
34. Nursing Home Assessment Credit
35. Rehabilitation of Historic Properties Credit
36. Historic Homeownership Rehabilitation Credit
2210.08. MINIMUM TAX
B. Taxpayers Subject to Tax
C. Tax Calculation
1. Tax Preference Items
2. Items Deductible From Minimum Taxable Income
3. Tax Benefit Rule
4. Specific Deduction
a. Resident Individuals
b. Nonresident Individuals
c. Resident and Nonresident Estates or Trusts
5. Net Operating Loss
6. Credits Against Tax
2210.09. SEPARATE TAX ON LUMP–SUM DISTRIBUTIONS
B. Tax Calculation
C. Resident Credit
D. Credits Against Separate Tax
E. Special Exception for Individuals Aged 50 before January 1, 1986
2210.10. NONRESIDENTS AND PART–YEAR RESIDENTS
B. Resident Defined
1. Resident
2. Nonresident
C. Domicile
1. Overview
2. Change of Domicile
3. Special Rules for Presence in a Foreign Country
4. Members of the Armed Forces
D. Statutory Residence
2. Permanent Place of Abode
3. Day Count
a. New York Day
b. Exceptions to the “Day Count” Rules
(i) Travel
(ii) Medical Facilities
E. Residency Audits
2. Change in Domicile
3. Primary Factors in Determining Domicile
4. Additional Factors in Determining Domicile
F. Calculation of Nonresident/Part–Year Resident Tax
G. New York Source Income
2. Definition of a Business
3. Additional Sourcing Rules
H. Allocation
2. Wage and Salary Allocation by Nonresidents
b. The “Convenience” Rule
c. Allocation for a Period of Less than a Year
d. Bonuses
e. Alternative Allocation Method
3. Pension and Other Retirement Compensation
a. Overview of New York Law
b. Pensions and Other Retirement Benefits Constituting an Annuity
c. Federal Law
4. Termination Pay
5. Deferred Compensation – Stock Options
6. Earnings of a Salesperson
7. Security and Commodity Brokers
8. Over–the–Counter Stock and Securities Transactions
9. Professional Athletes
10. Wages of Nonresident Seamen
11. Special Accruals
12. Accrual of Lump–Sum Retirement Distribution
13. S Corporation Shareholder Residents
14. Nonresident Shareholders
15. Part–Year New York State Residents
I. Apportionment and Allocation of Business Income
2. Separate Accounting Method
3. Three–Factor Apportionment Formula
b. Out–of–State Office
c. Property Factor
d. Payroll Factor
e. Gross Income Factor
f. Comparison of Apportionment Formulas
4. Alternative Allocation Formula
5. Income from Real or Tangible Personal Property Located in New York
6. Intangible Assets
7. Covenants Not to Compete
8. Performance “Royalties”
9. Alimony
10. Net Operating Losses
2210.11. PARTNERSHIPS AND PARTNERS, LIMITED LIABILITY COMPANIES AND MEMBERS
B. Unincorporated Business Tax
C. Distributive Share
D. Single Member LLC
E. Resident Partners
2. Modification of Special Allocation Items
3. Special Allocation for Avoidance
F. Nonresident Partners
2. Carrying on Business in New York
3. Income Apportionment
4. Special Rules as to New York Sources
5. Alternative Method
6. Change of Resident Status
G. Accounting Periods and Methods
H. Information Return
I. Return Due Date
2210.12. SHAREHOLDERS OF SUBCHAPTER S CORPORATIONS
B. Shareholders of New York S Corporations
2. New York Modifications to S Corporation Items
3. Itemized Deductions
4. Nonresidents
5. New York State Credits of New York S Corporation Shareholders
C. Shareholders of New York C Corporations
2. Modifications to Federal Adjusted Gross Income
3. Modifications to Federal Itemized Deduction
4. Modifications to Federal Items of Tax Preference
5. Nonresident Shareholders of New York C Corporations
D. Shareholders of Ineligible S Corporations
E. Sales of S Corporation Stock
1. Resident Stockholders
2. Modifications Increasing Federal Adjusted Gross Income
3. Modifications Decreasing Federal Adjusted Gross Income
4. Nonresident Shareholders
F. Resident Tax Credit for Shareholder Level Taxes
2. Shareholders of New York S Corporations
3. Shareholders of New York C Corporations
G. Deduction for Corporation Level Taxes
1. New York S Corporation
2. New York C Corporation
3. Ineligible S Corporations
4. Rules for Part–Year Resident Shareholders of S Corporations
2210.13. DECEDENT INCOME
B. Decedent's Final Return
C. Joint Return
D. Due Date
E. Accounting for Decedent's Income and Deductions
1. In General
2. Decedent Partner
3. Exception for Medical Expenses
F. Nonresident Decedent
2210.14. ESTATES AND TRUSTS
B. Federal Conformity
C. Distribution Deduction
D. Distributable Net Income
E. Distributions in Kind
F. Simple Trust
G. Complex Trusts
H. Tax Year of an Estate or Trust
I. Special 65–Day Rule
J. Accumulation Distribution
K. Trusts Subject to Special Rules
1. Employee Trust
2. Grantor Trusts
3. Revocable Trusts
4. Reversionary Interest
L. Resident Estates and Trusts
2. Exempt Resident Trusts
3. Other Exempt Trusts
4. Effect of Change of Residence
5. Taxpayers Required to File
6. Computation of Taxable Income
7. IRC 644 Gain
8. Income Classification
9. Allocation of Fiduciary Adjustment
b. General Rule
c. Estate or Trust With No Distributable Net Income
d. Alternate Method of Allocating Fiduciary Adjustment
e. Alternative Method of Allocating Modifications
M. Nonresident Estates and Trusts
2. Taxpayers Required to File
3. Taxable Income of a Nonresident Estate or Trust
b. Preliminary Tax Calculation
(i) Overview
(ii) Federal Distributable Net Income
(iii) Modifications
4. Tax Rates
5. Tax Credits
6. Tax Return
2210.15. NEW YORK CITY PERSONAL INCOME TAX
C. Base
D. Rate
E. Additional Taxes
1. Minimum Tax
2. Tax on Ordinary Income Portion of Lump–Sum Distributions
F. Unincorporated Business Tax
G. Residency
H. Calculation of Part–Year Residents Tax
I. Credits
2. Household Credit
3. Credit from Trust Distribution
4. Unincorporated Business Tax Credit
5. State School Tax Reduction Credit
J. Returns
K. Withholding
L. New York City Commuter Tax
2210.16. TAX RETURNS AND PAYMENTS
B. Who Must File
1. Residents
2. Nonresidents and Part–Year Residents
C. Filing Status
D. Accounting Period and Methods
2. Special Accounting Rules
E. Basic Return Forms
F. Other Schedules and Returns
G. Fast Form IT–100
H. Short Form IT–200
I. Long Form IT–201
J. Due Dates for Returns and Payments
K. Extensions of Time for Filing Returns
L. Extensions of Time for Tax Payments
M. Amended Returns and Reports of Federal Changes
2210.17. ESTIMATED TAX
A. Taxpayers Required to Pay
B. Required Installments of Estimated Tax
1. Payment Dates
2. Payment Amounts
b. High Income Taxpayers
c. Annualized Income Installment
C. Additions to Tax
2. Exceptions to Addition to Tax
2210.18. WITHHOLDING TAX
C. Exceptions
D. Nonwage Withholding
E. Withholding Methods
F. Employee Information Report
G. Interest and Penalties
H. Withholding Audits
I. Information Returns
2210.19. ADMINISTRATION AND AUDITS
B. Audits
1. Audit Staff
2. Audit Selection
3. Desk Audits
4. Field Audits
5. Proposed Adjustments
6. 30-Day Letter
7. 90-Day Letter or Notice of Deficiency
8. Responding to a Notice of Deficiency
2210.20. TAX ADJUDICATION
A. Conciliation Conferences
B. Administrative Law Judge Hearings
2. Representation
3. Petition, Answer and Motions
4. Hearings
b. Burden of Proof
c. ALJ Determinations
C. Small Claims Hearings
D. Tax Appeals Tribunal
2. Procedures
3. Constitutional Questions
E. Appellate Review
F. Declaratory Judgment
2210.21. ASSESSMENTS AND COLLECTION
A. Assessments Without 90–Day Letters
B. Assessments Resulting from Federal Audit Changes
C. Consent to Fix Tax
D. Jeopardy Assessments
E. Transferee Liability
F. Collection
G. Offers in Compromise
H. Credit or Refund for Overpayment
2210.22. INTEREST ON DEFICIENCIES AND REFUNDS
B. Rates
C. Daily Compounding of Interest
D. Refund Claims
2. Carryback Refund
3. Deficiency Reduced by Carryback
E. Interest on Additions to Tax and Penalties
F. Federal Changes
2210.23. CIVIL PENALTIES
B. Failure to File a Return
C. Failure to Pay Tax
D. Negligence
E. Underpayment of Estimated Tax
F. Fraud
G. Preparing Fraudulent Returns
H. Other Civil Penalties
I. Burden of Proof
J. Voluntary Disclosure
K. Summary of Civil Penalties
2210.24. CRIMINAL PENALTIES
A. Felonies
B. Misdemeanors
2210.25. STATUTE OF LIMITATIONS
B. Federal Changes or Amended Returns
C. Extension by Agreement
D. Deficiency Attributable to Carryback
E. Erroneous Refund
F. Substantial Omission
G. Suspension of Statute
H. Refunds
2. Return Not Filed
3. Federal Changes
4. Prepaid Tax
5. Refund Caused by Carryback
6. Extension by Agreement
7. Special Refund Authority
2210.26. TAXPAYER BILL OF RIGHTS
Working Papers
Item Description Sheet
Worksheet 1 New York Income Tax Rate Schedules For Tax Years Beginning After 1996
Worksheet 2 Household Credit Amount Schedule
Worksheet 3 Real Property Tax Circuit Breaker Credit Calculation and Maximum Limitation
Worksheet 4 New York City Income Tax Rate Schedules
Worksheet 5 Interest Rates on Overpayments and Underpayments
Bibliography