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 | Suzanne LoBiondo, CPA
516-791-1303
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 | Chris Cheeseman, CPA
516-791-1303
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Dear Clients and Friends,
Tax season has come to a close and the tax returns or extensions have all been filed. If your return was extended, don't wait until the last minute to file. As soon as those final K-1 forms or other items are received, forward them to us so we can finalize your return. The IRS is issuing refunds quickly, especially for those returns electronically filed with the direct deposit option chosen. If you haven't received your refund, you can check the status on the IRS website at www.irs.gov.
This edition contains several reminders about changes that were made to NYS tax laws for 2012.
The amount of referrals we received this year was tremendous and we truly appreciate them. We thank you for your confidence and value our relationship.
Very truly yours,
Suzanne LoBiondo and Christopher Cheeseman
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Reminder About new Lower NYS Income Tax Rates | |
In December, Governor Andrew M. Cuomo signed into law new lower personal income tax rates for New York State beginning January 1, 2012.
The legislation:
- created the lowest tax rates for middle-class New Yorkers in 58 years
- reduced the tax rate for at least 4.4 million middle-class taxpayers, resulting in an income tax reduction of $690 million
As an example of the reduced rates, see the married filing jointly rates below:
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Income Level |
Previous Tax Rate |
New Tax Rate | |
$40,001 to $150,000 |
6.85% |
6.45% | |
$150,001 to $300,000 |
6.85% |
6.65% | |
$300,001 to $2 million |
7.85% - 8.97% |
6.85% | |
Over $2 million |
8.97% |
8.82% |
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Reminder About Metropolitan Commuter Transportation Tax Changes | |
Employers
- Beginning with the second quarter (4/1/12-6/30/12), if your payroll expense for the quarter:
- Is $312,500 or less, you're not subject to the MCTMT for that quarter.
- Exceeds $312,500, use the appropriate rate shown below.
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Payroll expense |
MCTMT Rate | |
Over $312,500 but not over $375,000 |
.11% (.0011) | |
Over $375,000 but not over $437,500 |
.23% (.0023) | |
Over $437,500 |
.34% (.0034) |
- Note: The payroll expense threshold for the first quarter remains $2,500 and the rate remains .34%. If your payroll expense exceeds $2,500 for January 1, 2012, through March 31, 2012, you're subject to the MCTMT and must file a first quarter return due April 30, 2012.
Self-employed individuals (including partners and members)
- For tax years beginning on or after January 1, 2012, you're not subject to the MCTMT if your net earnings from self-employment allocated to the MCTD are $50,000 or less for the tax year. (The threshold has increased from $10,000 to $50,000.)
- Note: You're still required to file your annual return for tax year 2011 on April 30, 2012, if your net earnings exceeded $10,000 in 2011.
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Change in Sales Tax Exemption for Clothing effective April 1, 2012 |
Sales of eligible clothing and footwear for less than $110 are exempt from state sales tax
Beginning April 1, 2012, the New York State sales tax clothing exemption is restored to the original less-than-$110 threshold.
Sales of eligible clothing and footwear costing less than $110 per item or pair are exempt from the state's 4% sales tax and local tax in those localities that enacted the exemption.
These sales are only exempt from the ⅜% Metropolitan Commuter Transportation District (MCTD) tax in those localities within the MCTD that enacted the exemption from their local tax. |
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| About C&L Tax and Accounting Services LLP |
 C&L Tax and Accounting Services LLP is a boutique CPA firm that specializes in meeting the tax and accounting needs of individuals and small businesses. Our experienced tax and accounting professionals offer clients insightful and strategic tax planning and compliance services that maximize savings year after year. C&L Tax and Accounting Services LLP's offers a wide range of tax and accounting planning, compliance and consulting services for both individuals and small businesses. We invite you to peruse our capabilities and contact us for a consultation. |
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