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NYS Personal Changes
NYS Corporate Tax Reform
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suzanne
Suzanne LoBiondo, CPA
516-791-1303

 
 
Chris
Chris Cheeseman, CPA
516-791-1303

Dear Clients and Friends,

 

 

As we head into August, we'd like to remind you that business tax returns on extension are due September 15, and individual returns are due October 15. Please contact us as soon as you have your information ready so we can prepare those returns for you timely.  

 

We'd like to thank you for your continued faith in us as your trusted advisors.  

 

  

Very truly yours,

Suzanne LoBiondo and Christopher Cheeseman

 

NYS Personal Income Tax Changes

As a result of the NYS budget, some changes were made that will affect personal income taxes after 2013. Some of these items are highlighted below.

  

Family Tax Relief Credit:  This refundable $350 credit is available to taxpayers in 2014, 2015 and 2016.   To qualify, a taxpayer's return must show that the taxpayer a) was a NYS resident, b) claimed one or more dependents under age 17, c) had NY AGI of at least $40,000 but not more than $300,000, and d) had a tax liability greater than zero. 

For 2014 only, the commissioner will identify taxpayers who meet the eligibility requirements for the family tax relief credit using the information from tax returns on file for the tax year two years prior (2012). An eligible taxpayer (or taxpayers, if a joint return was filed) will receive an advance credit payment of $350 in the fall.

 

Small Business Subtraction Modification:  This subtraction modification to federal adjusted gross income is equal to a percentage of the net income from an eligible sole proprietorship or farm business that is included in federal income.  An eligible entity is a small business or farm business that is a sole proprietorship employing one or more persons and net income is greater than zero but less than $250,000.  A farm business that is a partnership or NY S corporation with the same employee and net income requirements is also eligible.

The percentage used to compute the modification is 3% in 2014, 3.75% in 2015, and 5% for tax years after 2015.

 

Metropolitan Commuter Transportation Mobility Tax Due Date: Effective for years beginning on or after January 1, 2015, the due date for filing returns and making estimated payments for self-employed individuals subject to the MCTMT will align with the due date for personal taxes (April 15, June 15, September 15, January 15).  Previously these filings were coupled with the due date of the employer version of the MCTMT (April 30, July 31, October 31, January 31).

 NYS Corporate Tax Reform
The 2014-15 New York State Budget enacted on March 31, 2014, contains the most significant reform of New York State's corporate tax system since the 1940s.  Major changes include:  
 
  • Lowering the business income base tax rate from 7.1% to 6.5% for tax years beginning on or after January 1, 2016;
  • Reducing the business income base rate for qualified manufacturers to 0% beginning for tax years on or after January 1, 2014;
  • Repealing the alternative minimum tax base;
  • Phasing out the capital base tax over six years;
  • Implementing a single receipts apportionment factor using customer based sourcing rules for all taxpayers;
  • Eliminating the separate treatment of subsidiary capital and income;
  • Streamlining the computation of the MTA surcharge and making it permanent;
  • Simplifying the rules for NOLs incurred in tax yeas beginning on or after January 1, 2015;
  • Allowing a three year carry back of net operating losses incurred in tax years 2015 and after;
  • Merging Article 32 (Bank Franchise Tax) into Article 9-A (Corporate Franchise Tax)
About C&L Tax and Accounting Services LLP
 
clC&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.