Tax Professional Newsletter 1/28/2020
Need a copy of your W-2?
If you or your client need information to file an income tax return for the current tax year, request a copy of Form W-2 from the employer. Beginning April 16, if your client contacted the employer and could not obtain a copy of Form W-2, we can provide a state wage and tax transcript that includes any New York State information the employer has reported to us. For more information, visit What if you didn’t receive or lost your Form W-2?
Reminder: Employers have until January 31 to mail W-2s to their employees; clients should wait until mid-February to receive them before requesting a copy from their employer.
Reviewing your client’s tax account balance
Before you file your client’s return, be sure to review their tax account to ensure you are reporting the correct amount of payments on their return. If your records disagree with the estimated tax amounts shown, complete and submit Form IT-2105.1, Reconciliation of Estimated Tax Account for Individuals, by April 1.
With a signed E-ZRep Form TR-2000, Tax Information Access and Transaction Authorization, you can view your client’s tax account balance from your Tax Professional account, including:
- estimated tax payments,
- amounts carried forward from a prior tax year, and
- extension payments, if any.
For more information, visit Review your tax account balance before you file.
Report property tax credits on 2019 income tax returns
Your clients who itemize their deductions on their 2019 New York State income tax returns, or who are residents of Yonkers, may be required to report property tax relief credits and STAR credits received in 2019.
To learn more, visit How to report your property tax credits. Use our Property Tax Credit Lookup to verify if you received a check for 2019.
Driver license requirement
New York State requires you to include your client’s driver license or non-driver ID information on their return. This applies to both the primary taxpayer and the spouse (if applicable). You must enter your client’s information each tax year, as New York State does not allow the retention of driver license information by tax preparation software.
For more information, visit Driver license requirement.
Claiming credits, income, and deductions
Avoid delays in the processing of your client’s return by claiming only the credits, income, and deductions they can provide required documentation for.
If your client gets an inquiry letter from us (or from the IRS), they must supply the acceptable proof of the credits, income, and deductions claimed.
To help you and your client determine whether they may claim certain credits, income, or deductions, visit Recordkeeping for individuals.
Other filing tips for personal income tax
- Enter the correct date of birth and Social Security number for the primary taxpayer and, if applicable, the spouse and all dependents.
- Enter the correct address (apartment or house number, PO Box or street address, city, state, and ZIP code) where your taxpayer receives mail.
- Enter the correct bank account information (full bank account number and the routing transit number of the financial institution).
- On amended returns, include all credit forms, schedules, and attachments included with the original return.
New Special Condition Code C2
New for Tax Year 2019, taxpayers who are unable to pay their tax due in full by April 15, 2020, and would like to request an Installment Payment Agreement (IPA) may enter Special Condition Code C2 on Form IT-201, Full-Year Resident Income Tax Return, Item G, and IT-203, Nonresident and Part-Year Resident Income Tax Return, Item F.
This Special Condition Code will also be available through tax preparation software. Special Condition Code C2 will allow a taxpayer to more quickly receive a bill for the unpaid tax due. After receiving the bill, the taxpayer may request an IPA using Online Services, through our phone system, or by speaking with a representative. The Special Condition Code does not automatically create an IPA; any tax return payments scheduled by the taxpayer will be withdrawn as scheduled unless canceled by the taxpayer.
Requests for additional information
We may ask for documentation to support claims on your client’s return. It doesn't necessarily mean that anything is wrong. It's just an extra step we take to ensure refunds go out only to those who are entitled to them. If your client receives a letter requesting additional information, they should do the following:
- Read the letter carefully and provide all required documentation that has been requested by the department.
- If they would like to change an itemized deduction election and claim the standard deduction, they should complete and return the required section of the letter and return it with the DTF-973.61, Response to Inquiry. In the required section, the taxpayer (and spouse, if applicable) must:
- Check the box if they would like to claim the standard deduction.
- Sign authorizing the department to change their itemized deduction election to the standard deduction.
- Enter the date.
To submit a complete response to your client’s letter, visit Respond to a letter and Recordkeeping for individuals.
Keep up with tax changes
The Tax Professional Newsletter is a monthly summary of recent changes and new information. To receive updates as we announce them, subscribe to new tax topics as we add them to our Subscription Service. We’ll share links to new resources, and tax tips as they become available.
Recently added topics include:
- Cigarette, tobacco, and vapor products taxes
- Medical marijuana and opioid excise taxes
- Real estate transfer tax and mortgage recording tax
Upcoming due dates
1/31/20:
- Employer's quarterly MCTMT return
- Employer's quarterly combined withholding, wage reporting, and unemployment insurance return
2/20/20:
Sales tax return for monthly filers
Stay on top of due dates; bookmark our Tax Calendar.
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