As a result, if you fall within this category, you will need to keep any documents relevant to the year in question indefinitely. You have an obligation to keep records that support what you have claimed on your tax return. Good recordkeeping also benefits you because it protects you in the event of an audit. You have the burden of proof in establishing that your tax return is accurate. The state won’t give you the benefit of the doubt, so you want to make sure you have appropriate evidence if asked for it. You may have extra paperwork if you live in New York City or Yonkers, since those cities assess local income tax on top of state tax.

Refundable credits can be claimed even if you don’t owe any income tax. Furthermore, a few other cities in New York State have tax rates that are different from rate in the county in which they are located. For example, the sales tax rate in Yonkers is 8.875%, whereas the rate in the county in which it is located – Westchester – is 8.375%. The federal deadline is April 18 if you earned US income in 2022. Confirm the deadline for the state(s) you will need to file taxes in. If you are unable to file your forms by the deadline, you must submit an application for Automatic Extension of Time to File Your Tax Return to the IRS.

IRS OR NYS TAX TROUBLE?

Be on the lookout for these types of issues, because they arise in almost every residency audit the tax department undertakes. Unlike issues about domicile and day count, these questions may not be at the forefront of the auditors’ minds, and they are often overlooked in residency planning situations. But given New York’s high tax rates, even for nonresidents, these questions are often hugely important in day-to-day residency audits. You can qualify for the household credit if you have an AGI of $12,500 or less for single filers and $22,500 or less for married filing jointly as of 2021.

It will also inform you of any tax benefits that may apply to you. Although the OGS cannot advise on tax issues, we hope to give you basic information here as a helpful starting point. Please note, this information is not tax advice but rather it is meant to help you in completing your tax filing obligations as an international student or scholar. For further tax guidance, we recommend you consult with a professional tax service (free or fee-based). The article 9-A allocation rules call for a single-factor allocation, based on receipts only.

Filing Your Return

You can find forms on the New York Department of Taxation and Finance website and submit your return through the mail. Another alternative for a faster refund and a more accurate return is to e-file through the state’s website. A tax credit is available for up to $400 per student for qualified tuition expenses. You can either take this credit or the college tuition deduction, but not both.

The Motor Fuel Excise Taxes on gasoline and diesel in New York are 17.35 cents per gallon and 15.7 to 17.3 cents per gallon, respectively. Furthermore, the Petroleum Business Tax (PBT) is paid by petroleum businesses for certain types of fuel and paid at different points in the distribution chain. If you were present in the US even for 1 day during 2022, then you have tax filing obligations. Explore our collection of hundreds of online resources and databases. Use our free online content to help with your research, whether it’s finding a single article, tracing a family tree, learning a new language, or anything in between.

Your 2022 Federal Income Tax Comparison

If you are married filing jointly, your AGI must be $110,000 or less. And if you are married filing separately, your AGI needs to be $55,000 or less https://www.bookstime.com/articles/prepaid-insurance-journal-entry to claim this credit. New York’s earned income credit is equal to 30% of your federal earned income tax credit, minus any household tax credit.

Then, you will upload your tax documents, and our tax pros will do the rest! We can help with your NY taxes, including federal deductions for paying state taxes. New York’s Nonresident Allocation Rules are some of the most frequently referenced issues in audits and tax questions. They are also some of the most active practice areas in New York taxation — and one of the issues most likely to lead to an audit in the state. Even if a taxpayer is able to establish residency in another state, he or she might still have issues in New York because under New York’s rules, nonresidents also have to pay New York state taxes in some situations. Income tax credits reduce your New York State income tax liability directly—the amount of tax you owe.

Will I or my heirs have to pay inheritance and estate tax in New York?

The state’s tax law, for example, exempts pension income from taxation. The New York tax code also provides several tax credits that help homeowners and those with children. Your city income taxes are calculated and paid on your New York State income tax return if you live in New York City or Yonkers. Forgetting to include these taxes is one of the most common mistakes made on New York income tax returns. For taxpayers in the state of New York, there’s New York City, and then there’s everywhere else. The state’s tax system combines a relatively low sales tax rate with an income tax system that leans heavily on high earners.

• The article 9-A allocation rules call for a single-factor allocation, based on receipts only.
• The average rate is 1.4 percent of the assessed value of your home, according to the Tax Foundation.
• You can find forms on the New York Department of Taxation and Finance website and submit your return through the mail.
• No, but you may pay federal taxes on a portion of your Social Security benefits, depending on your income.

Similar to New York state, how you calculate your New York City taxes depends on your taxable income. Keep in mind that your final tax bill will also be influenced by other factors, including credits and deductions you may qualify for. In today’s world, many taxpayers lead complex lives and may travel to multiple states as part of business, family obligations and other experiences. If you are subject to a New York State nonresident audit or have questions about residency or nonresidency issues, contact the attorneys at Hodgson Russ LLP for a consultation.

Child and Dependent Care Credit

Consult with a tax professional for assistance if you need to adjust a previously filed tax return. Be aware that the New York State Tax Department can request other documentation depending on the nature of the tax issue. For example, if the state is challenging your residency for income tax purposes, it may ask for cellphone and E-Z Pass records, appointment calendars, credit card statements and other information. A New York tax lawyer can provide guidance on how to respond to document requests.

• Thus, a bonus paid in February 2010 for work performed in 2009 would be allocated based on the workday allocation fraction applicable to the 2009 year.
• Furthermore, the Petroleum Business Tax (PBT) is paid by petroleum businesses for certain types of fuel and paid at different points in the distribution chain.
• AARP’s Social Security calculator can assist you in determining when to claim and how to maximize your Social Security benefits.
• For example, the upper limit of the first bracket goes up from $8,500 to to $17,150 if you’re married and filing jointly.

This credit is for full-time New York residents who have a child who doesn’t live with them and for whom they pay child support for at least half the year. You must be current on your child support obligation to qualify. New York’s earned income credit is equal to 30% of your federal earned new york income tax rate income credit. It’s reduced by the amount of any household credit you qualify for and claim. Government pension income from New York state, a local government, the federal government (including Social Security benefits), and certain railroad pensions are not taxable in New York.

If you had US income during 2022, you may need to file a state tax return

To receive the household tax credit, you cannot be claimed as a dependent on someone else’s federal return. Also, you must reside in New York at least part of the year and meet certain income thresholds. The credit is worth up to $75 for single filers who earn $28,000 or less. For other filers, the credit amount varies according to the number of dependents you claim on your New York tax return.