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Response to the federal Tax Cuts and Jobs Act

The passage of the federal Tax Cuts and Jobs Act (TCJA) will have a significant impact on the economy and tax system of New York State. New York State has taken several actions in response to the passage of the federal bill, which are outlined below.

New York State Charitable Gifts Trust Fund

The FY 2019 Budget creates a new Charitable Gifts Trust Fund in the joint custody of the New York State Commissioner of Taxation and Finance and the State Comptroller to accept donations for the purposes of improving health care and public education in New York State. Starting in 2018, donating taxpayers may claim a deduction on their New York State income tax returns equaling the full donation amount of any contribution for the tax year in which the donation is made. Donating taxpayers may also claim a New York State income tax credit equal to 85% of the donation amount for the tax year after the donation is made. For example, a taxpayer who makes a $1,000 contribution in calendar year 2018 will be entitled to a $1,000 deduction on her 2018 New York State income taxes (due in April 2019) and an $850 New York State income tax credit (85% of $1,000) on her 2019 New York State income taxes (due in April 2020).

Contributors to the Charitable Gifts Trust Fund may choose to direct their donations into one of two accounts. The Health Charitable Account will receive charitable contributions for services relating to primary, preventive, and inpatient health care, dental and vision care, hunger prevention and nutritional assistance, and other services for New York State residents with the overall goal of ensuring that residents have access to quality health care and other related services. The Elementary and Secondary Education Account will receive charitable contributions to support the elementary and secondary education of students enrolled in public school districts in the New York State.

New Yorkers interested in making a contribution to one of these accounts can mail a check to:

P.O. BOX 22119
ALBANY NY  12201-2119

The check should be made out to the State Treasurer; the memo line should specify Health Charitable Account or Elementary and Secondary Education Account.

As always, taxpayers are advised to consult a qualified tax advisor regarding their personal situation.

General information