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).
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