24 THE QUEENS COURIER • MARCH 7, 2019 FOR BREAKING NEWS VISIT WWW.QNS.COM
TAX TIPS
New York State Decouples
from Certain Federal Personal
Income Tax Changes
BY JOHN SAVIGNANO, CPA
The Tax Cuts and Jobs Act of 2017 (TCJA) made significant changes to personal
income taxation. In response to the federal tax law changes made under the TCJA,
New York State has decoupled from certain income tax changes. This is an overview
of how some of these critical changes will impact the upcoming tax season:
Itemized Deductions
Taxpayers may choose to itemize their deductions for New York purposes for tax
years 2018 and after, even if they do not itemize on their federal income tax return.
In addition, New York allows several deductions that are no longer available for
federal purposes, such as the following:
limit.
disaster area.
expenses, and safe deposit box fees. To end this New York State has created Form
IT-196 for New York residents to report their allowable itemized deductions.
Medical and Dental Expenses
For federal purposes, medical and dental expenses can be deducted only if the
expenses are more than 7.5% of federal adjusted gross income (AGI). For New York
purposes, medical and dental expenses can be deducted if the expenses are greater
than 10% of federal AGI.
Interest Expenses
Home mortgage and home equity interest deductions, for federal purposes, have
changed for the 2018 tax yea; however, New York will follow the federal 2017 rules
for such deductions.
Alimony or Separate Maintenance Payments
When calculating the New York AGI, taxpayers who have alimony or separate
maintenance payments made under and alimony or separation agreement that was
executed or modified after December 31, 2018, are required to:
payments made in the tax year, and
received in the tax year.
Moving Expenses and Reimbursement
New York will continue to allow taxpayers to exclude from their New York AGI
any qualified moving expenses and reimbursement for moving expenses that are
not deductible or excludable under the TCJA. When calculating New York AGI,
taxpayers should subtract from federal AGI:
year, and
Section 529 College Savings Account Plan
Withdrawals from a qualified tuition program account established under section
529 of the Internal Revenue Code for kindergarten through 12th grade school
tuition, which now qualify under the TCJA, are not qualified withdrawals under the
New York 529 college savings account program. A withdrawal is nonqualified if the
withdrawal is actually disbursed in cash or in-kind from a New York State 529
college savings account and the funds are not used for the higher education of the
designated beneficiary. Higher education generally means public or private,
nonprofit, or proprietary postsecondary educational institutions in or outside New
York. Therefore, any withdrawal from a New York 529 college savings account used
to pay tuition in connection with enrollment or attendance in elementary or
secondary public, private, or religious schools is a nonqualified withdrawal.
Change to the Empire State Child Tax Credit
Taxpayers may no longer use the amount of the current tax year’s federal child tax
credit or additional child tax credit to compute the Empire State Child Tax Credit
for New York. The Empire State Child Tax Credit is based on the 2017 federal credit
amounts and income.
John Savignano is a partner with Savignano Accountants & Advisors located at
47-46 Vernon Blvd., Second Floor, in Long Island City. If you have any questions or
require additional information, please call John at 718-707-0955.
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