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Department of Taxation and Finance

Income tax highlights for 2018

  • The federal Tax Cuts and Jobs Act (TCJA) and its effect on New York State personal income tax    
    On December 22, 2017, the federal TCJA was enacted and it made changes to the Internal Revenue Code (IRC).

    For information about the TCJA, visit www.irs.gov/tax-reform.

    For the most up-to-date information and guidance on how the federal changes may affect you when filing your New  York State income tax return, visit our website at www.tax.ny.gov.

  • State Charitable Gifts Trust Fund
    The 2018-2019 New York State Budget Bill created a new Charitable Gifts Trust Fund. Starting with tax year 2018, donating taxpayers may claim a New York itemized deduction equal to the full donation amount of any contribution for the tax year in which the donation is made. For more information, visit our website at www.tax.ny.gov and see Response to the federal Tax Cuts and Jobs Act.

General changes for 2018

  • New York itemized deduction
    Beginning with tax year 2018, the Tax Law allows you to itemize your deductions for New York State income tax purposes whether or not you itemized your deductions on your federal income tax return (federal Schedule A, Itemized Deductions).

    In general, your New York itemized deductions are computed using the federal rules as they existed prior to the enactment of    the TCJA.  Additionally, there are two new itemized deduction adjustments:  

    • Farm donation to food pantries—You may not use the same qualified donation to a food pantry to claim both a charitable contribution  itemized deduction and a farm donation to food pantries credit (see Form IT-649, Farm Donations to Food Pantries Credit) for New York income tax purposes.

    • Union dues addition adjustment—The portion of your union dues not included as a miscellaneous itemized deduction on Form IT-196, New York Resident,  Nonresident, and Part-Year Resident Itemized Deductions, line 21, can be added to your total itemized deductions when computing your New York itemized deduction.

 For additional information, see Form IT-196 and its instructions.

  • New York State tax rate schedules
    These schedules were revised to reflect certain income tax rate reductions enacted under Part TT of Chapter 60 of the Laws of 2016. 
     
  • New York City taxable income
    Full-year New York City resident taxpayers who contribute to a New York State Charitable Gifts Trust Fund account and claim a New York itemized deduction for that contribution must use the Line 47 worksheet in these instructions to compute their New York City taxable income (part-year New York City residents see Form IT-360.1).

  • New York City tax rates
    These rates were extended through tax year 2021.

  •  Personal income tax top bracket 
     This bracket was extended through tax year 2019.

  • Statute of limitations on amended returns
    The statute of limitations was extended for assessments based on changes or corrections reported on amended returns. Generally, The Tax Department may now issue an assessment on an amended return until the later of one year from the date the amended return was filed or three years from the date the original return was filed.

  Note: This change applies to amended returns filed on or after April 12, 2018.

Changes to existing credits

  • New York State child and dependent care credit 
    Beginning with tax year 2018, this credit was enhanced. The amount increased for taxpayers with New York adjusted gross income (NYAGI) of at least $50,000 but less than $150,000. In addition, the qualified expense limit increased for taxpayers with more than two qualifying persons as follows:

    • $7,500 for three

    • $8,500 for four, and

    • $9,000 for five or more qualifying persons.

  For more information about the credit, see Form IT-216, Claim for Child and Dependent Care Credit, and its instructions.

  • Empire State child credit
    Beginning with tax year 2018, you can no longer use the amount of your federal child tax credit or additional child tax credit to compute your credit. The Tax Law changed to base the credit amounts on the federal child tax credit as it existed prior to the enactment of the TCJA. Therefore, to calculate your credit, you will use the federal credit amounts and income thresholds that were in effect for tax year 2017. For more information about the credit, see Form IT-213, Claim for Empire State Child Credit, and its instructions.

  • Excelsior jobs program tax credit
    The percentage of research and development expenses allowed increased for the Excelsior research and development tax credit component. See Form IT-607, Claim for Excelsior Jobs Program Tax Credit, and its instructions.

  • Historic homeownership rehabilitation credit 
    The historic homeownership rehabilitation credit enhancements were extended through the year 2024. These include but are not limited to:

    • the credit limit of $50,000 per tax year ($100,000 for taxpayers filing a joint return) and

    • the refundability of any excess credit without interest for taxpayers with an NYAGI of $60,000 or less.

For more information about the credit, see Form IT-237, Claim for Historic Homeownership Rehabilitation Credit, and its instructions

  • Farmer's school credit
    Beginning with tax year 2018, this credit is expanded to include property tax credits for farmers to include a trustee or a trust established by the taxpayer and rented to a member of the taxpayer's immediate family. See Form IT-217, Claim for Farmer's School Tax Credit, and its instructions.

  • Hire a veteran credit 
    This credit was extended through December 31, 2020. See Form IT-643, Hire a Veteran Credit, and its instructions.    

  • New York youth jobs program tax credit
    Beginning with tax year 2018, this credit is increased for each qualified employee employed in a full-time or part-time job. For full-time employees the credit is now $750 per month for up to six months and for part-time employees the credit is now $375 per month for up to six months. See Form IT-635, New York Youth Jobs Program Tax Credit, and its instructions.

  • Rehabilitation of historic properties credit
    This credit was extended through December 31, 2024. Taxpayers will continue to be allowed to claim 100% of the federal credit for the year the certified historic structure was placed in service, without regard to the federal credit now being allocated over a five-year period. See Form IT-238, Claim for Rehabilitation of Historic Properties Credit, and its instructions

  • Empire State musical and theatrical production credit
    This credit was extended through December 31, 2022. See Form IT-642, Empire State Musical and Theatrical Production Credit, and its instructions.

New Credits

  • Life sciences research and development tax credit 
    Beginning with tax year 2018, there is a credit available for the qualified expenditures of qualified life science companies that devote the majority of their efforts to the various stages of research, development, technology transfer, and commercialization related to the life sciences field. See Form IT-648, Life Sciences Research and Development Tax Credit, and its instructions.

  • Farm donations to food pantries credit   
    Beginning with tax year 2018, there is a credit available for an eligible farmer who made a qualified donation or are the owner of a business entity that made a qualified donation to an eligible food pantry. See Form IT-649, Farm Donations to Food Pantries Credit, and its instructions

  • Empire state apprenticeship tax credit
    Beginning with tax year 2018, there is a credit available for a certified employer or an owner of a certified employer of the Empire State Apprenticeship Tax Credit Program for the employing eligible apprentices which include disadvantaged youths. See Form IT-650, Empire State Apprenticeship Tax Credit, and its instructions.

New and revised income modifications 

  • Net gain from casualty and theft loss
    If you claim the New York itemized deduction for a casualty or theft that results in a net gain, a new addition modification must be made. See Form IT-225, New York State Modifications, and its instructions.

  • Deduction for student loans discharged due to death or disability      
    For students or parent borrowers that had a student loan discharged in whole or in part due to death or disability, to the extent that the discharged amount was included in federal taxable income, there is a new subtraction modification. See Form IT-225, New York State Modifications, and its instructions.

    • Qualified moving expense reimbursements and moving expenses
      If you received any qualified moving expense reimbursements or paid any moving expenses, there is a new subtraction modification. See Form IT-225, New York State Modifications, and its instructions.

    New Voluntary Contributions

    • Love Your Library Fund 
      This fund was created to raise the visibility and the public's awareness of libraries and for summer reading programs in libraries. Taxpayers may donate any whole dollar amount to be used for this fund. For more information, see page 29.

    • Lupus Education and Prevention Fund 
      Taxpayers may donate any whole dollar amount to be used for programs that support lupus education, prevention, and awareness. For more information, see page 29.

    • Military Family Relief Fund 
      Taxpayers may donate any whole dollar amount to be used to provide assistance to military families. For more information, see page 29

    • City University of New York Construction Fund
      Taxpayers may donate any whole dollar amount to be used for the design and construction of facilities at the City University of New York. For more information, see page 29.

    New for tax year 2019

    • New York State Charitable Gifts Trust Fund 
      Starting with tax year 2019, taxpayers who donated to New York State Charitable Gifts Trust Fund accounts may claim a New York State personal income tax credit equal to 85% of the donation amount made in the previous tax year. For more information, see Response to the federal Tax Cuts and Jobs Act, visit our website at www.tax.ny.gov.

    • Definition of New York State resident
      For tax years 2019 and after, the definition of resident individual for New York State income tax purposes was clarified to state that the individual who maintains a permanent place of abode in New York State and spends more than 183 days of the tax year in New York State, whether or not they are domiciled in this state, is a resident unless they were in active service in the military.  

     

     

     

     

     

     

     

     

     

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