Income tax highlights for 2012

General changes for 2012

New York State tax rates reduced

Certain rates within the New York State tax rate schedules have been reduced, and the tax computation worksheets for taxpayers with New York adjusted gross income of more than $100,000 are now based on filing status.

Forms IT-2, IT-1099-R, and IT-1099-UI have been eliminated

Taxpayers  no longer  file New York Forms IT-2, Summary of W-2 Statements,  IT-1099-R, Summary of Federal Form 1099-R Statements, and IT-1099-UI, Summary of Unemployment Compensation Payments. Instead, they must include the state copy of certain federal forms with their New York State returns.

Whole dollar amounts required on income tax forms

For tax years 2012 and after, taxpayers may enter only whole dollar amounts on income tax forms.

Foreign account information required on income tax return

Taxpayers must now acknowledge if they have a financial account located in a foreign country.

Dependent exemption information must be entered on income tax return

Taxpayers must now enter information for each dependent for whom they claimed a dependent exemption on their New York State return.

Itemized deduction schedule now a separate form

The itemized deduction schedule has been moved from Form IT-201 and Form IT-203 to new Form IT-201-D, Resident Itemized Deduction Schedule and new Form IT-203-D, Nonresident and Part-Year Resident Itemized Deduction Schedule.  

Penalty and interest line added to income tax return

Taxpayers may now enter and pay any penalty and interest they owe directly on their income tax return.

Additional account information required on income tax return

For direct deposit or electronic funds withdrawal, taxpayers must now designate whether the checking or savings account  is a personal or business account and enter the amount of  the electronic funds withdrawal (if applicable).

STAR eligibility suspended for certain taxpayers with past-due state tax liabilities

This program provides that taxpayers whose total past-due state and local tax liabilities are $4,500 or more, and who own real property, may have their STAR exemptions suspended.

Metropolitan commuter transportation mobility tax (MCTMT) threshold increased

The threshold for imposing the MCTMT on individuals with net earnings from self-employment has increased from $10,000 to $50,000 for tax years beginning on or after January 1, 2012.  See Form MTA-6, Metropolitan Commuter Transportation Mobility Tax Return, and its instructions.

New credits

Beer Production Credit

A new credit is available to registered beer distributors that produce 60,000,000 or fewer gallons of beer in New York in the tax year. See Form IT-636, Beer Production Credit, and its instructions. 

Empire State Jobs Retention Program

This program provides tax incentives to businesses that are at risk of leaving the state due to the impact on business operations of an event (such as a natural disaster) leading to an emergency declaration by the governor. See Form IT-634, Empire State Jobs Retention Program Credit, and its instructions.

New York Youth Works Tax Credit Program

This program provides tax incentives to qualified businesses employing at-risk youths in full-time and part-time positions in 2012 and 2013. See Form IT-635, New York Youth Works Tax Credit, and its instructions. 

Changes to existing credits

Empire State commercial production credit

This credit has been extended through tax years beginning before January 1, 2015. See Form IT-246, Claim for Empire State Commercial Production Credit, and its instructions.

Empire State film post-production credit

Visit the Governor's Office for Motion Picture and Television Development Web site at www.nylovesfilm.com  for information concerning the amendments made to this credit.

Biofuel production credit

This credit has been extended through tax years beginning before January 1, 2020 See Form IT-243, Claim for Biofuel Production Credit, and its instructions.

Noncustodial parent earned income credit

This credit has been extended through tax years beginning before January 1, 2015. See Form IT-209, Claim for Noncustodial Parent New York State Earned Income Credit, and its instructions.

Clean Heating Fuel Credit

This credit has been extended through tax years beginning before January 1, 2017. See Form IT-241, Claim for Clean Heating Fuel Credit, and its instructions.

Solar energy System Equipment Credit

This credit has been expanded to include leased property. See Form IT-255, Claim for Solar Energy System Equipment Credit, and its instructions. 

Brownfield Credits

The eligibility timeframe for the brownfields tax credits has been extended from March 31, 2015, to December 31, 2015. See Forms IT-611, Claim for Brownfield Redevelopment Tax Credit, IT-612, Claim for Remediated Brownfield Credit for Real Property Taxes and IT-613, Claim for Environmental Remediation Insurance Credit.

Updated: November 30, 2012