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Www.nystax.gov Summary of 2009 New York State Tax For Volunteer Tax Preparers.

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1 Summary of 2009 New York State Tax For Volunteer Tax Preparers

2 Private and Confidential In accordance with Internal Revenue Service In accordance with Internal Revenue Service Taxpayers utilizing volunteer program services provide personal information to the volunteers, such as names, addresses, social security numbers, birth dates, and bank account information. Therefore, partners and volunteers must keep the information confidential and protect it from unauthorized individuals and misuse.

3 NYS Tax Contact Information Tax Practitioners Hot Line: 1 (888) Tax Practitioners Hot Line: 1 (888) Forms Control Unit phone number: (518) TP-3 Forms Order (Can order TP-300) Forms Control Unit phone number: (518) TP-3 Forms Order (Can order TP-300) E-file Helpdesk line: E-file Helpdesk line: Online Tax Center Assistance Online Tax Center Assistance G: 1 (866) or (518) l 1099-G: 1 (866) or (518) l

4 Resources Available for Volunteers TP -300 Quick Reference Guide TP -300 Quick Reference Guide NYS intake sheet – to determine credits and adjustments NYS intake sheet – to determine credits and adjustments Publication 80 – General Information for NYS residents Publication 80 – General Information for NYS residents Publication 310NY – NYS Earned Income Tax Credit Pub10-W-FAQs -College Tuition Credit or Itemized Deduction Pub10-W-FAQs -College Tuition Credit or Itemized Deduction Publication 94 – Should I be Paying Estimated taxes Publication 94 – Should I be Paying Estimated taxes Publication 84- Handbook for e-filers of 2008 PIT Returns. Publication 84- Handbook for e-filers of 2008 PIT Returns. Publication 99IND-NYS/NYC Income tax credits for Individuals Publication 99IND-NYS/NYC Income tax credits for Individuals

5 Resources Available for Volunteers Publication 22 - Publication 22 - FAQS: NYS Real Property Tax Credit For Homeowners and Renters Publication 36 - General Information for Senior Citizens and Retired Persons Publication 36 - General Information for Senior Citizens and Retired Persons Publication 38 – Your Rights as a Taxpayer Publication 38 – Your Rights as a Taxpayer Publication 46 - Common Reasons for Income Tax Adjustments Publication 46 - Common Reasons for Income Tax Adjustments Publication 140-W-FAQs: New York State Lottery Winners - What are my Tax Responsibilities for New York State Publication 140-W-FAQs: New York State Lottery Winners - What are my Tax Responsibilities for New York State

6 Volunteer returns rejected Reason rejected (list top 10 reasons why e-file return rejected ) 139 Withholding (NY State, NY City, or Yonkers) should not be greater than or equal to wages. Check your W Required information missing for qualifying person reported on Form IT Amount of NYS withholding reported on return not equal to amount reported on wage and tax statements. 106 NY City withholding entered on W-2 not equal to amount on the return, or NY City withholding on W-2 not carried to NY City withholding but W-2 does not have NYC withholding 50 A computational error occurred in calculating the NYS Adjusted Gross Income on return. 37 Amount of wages, tips and other compensation reported on return less than amount reported on Form(s) W-2 and/or 1099-R. 26 You do not qualify for the real property tax credit claimed on return if household gross income exceeds eligible values. 24 Negative amount not allowed for these lines. 23 Income level exceeds eligible threshold for the earned income credit(s) when no qualifying persons claimed on line 4 of IT Name of care provider not reported on Form IT-216.

7 Changes for NYS Department of Taxation and Finance Cost Reduction initiatives for 2009: Cost Reduction initiatives for 2009: Eliminated walk-in services for taxpayersEliminated walk-in services for taxpayers No automatic mailings of personal income tax returnsNo automatic mailings of personal income tax returns No Toll free numbers for out-of-state callersNo Toll free numbers for out-of-state callers We are no longer mailing Form 1099-G, Statement for Recipients of StateWe are no longer mailing Form 1099-G, Statement for Recipients of State Youtube videos to assist taxpayers with complying to NYS tax laws.Youtube videos to assist taxpayers with complying to NYS tax laws.

8 Whats New for 2009 ? Registration required for certain paid tax return preparers and facilitators (refund anticipation loan facilitators) Registration required for certain paid tax return preparers and facilitators (refund anticipation loan facilitators) New York State personal income tax rates increased on certain taxable incomes New York State personal income tax rates increased on certain taxable incomes New York itemized deduction limitation changed New York itemized deduction limitation changed New fee for payments returned by banks New fee for payments returned by banks New mailing address for returns with payments New mailing address for returns with payments New York City school tax credit reduced New York City school tax credit reduced NYHELP student loan interest deduction NYHELP student loan interest deduction

9 Refund Anticipation Loan Facilitators Registration A facilitator is a person who individually or in conjunction or cooperation with another person: A facilitator is a person who individually or in conjunction or cooperation with another person: solicits the execution of, processes, receives, or accepts an application or agreement for a refund anticipation loan or refund anticipation check;solicits the execution of, processes, receives, or accepts an application or agreement for a refund anticipation loan or refund anticipation check; serves or collects upon a refund anticipation loan or refund anticipation check; orserves or collects upon a refund anticipation loan or refund anticipation check; or in any other manner facilitates the making of a refundin any other manner facilitates the making of a refund Note: An individual who may meet one of the exclusions from being considered a tax return preparer, for registration purposes, can still be considered a facilitator and be subject to the registration requirements Note: An individual who may meet one of the exclusions from being considered a tax return preparer, for registration purposes, can still be considered a facilitator and be subject to the registration requirements

10 Requirement of Tax and Finance to Create a Task Force The Task Force will examine the need for additional oversight of tax return preparers. The Task Force will examine the need for additional oversight of tax return preparers. The Task Force will include representatives from NYS Department of Taxation and Finance, representatives from Office of Temporary and Disability Assistance, practitioner participants, CPAs, etc The Task Force will include representatives from NYS Department of Taxation and Finance, representatives from Office of Temporary and Disability Assistance, practitioner participants, CPAs, etc The Task Force will prepare a report making recommendations for the appropriate professional qualifications, including, but not limited to, minimum educational qualifications and continuing education requirements for tax return preparers. The Task Force will prepare a report making recommendations for the appropriate professional qualifications, including, but not limited to, minimum educational qualifications and continuing education requirements for tax return preparers.

11 Restrictions on tax return preparer and facilitators The amendment to the 2009 – defines tax return preparers (volunteers NOT included in definition) and defines RAL facilitators and certain terms related to RALs. The legislation directs the Department to coordinate its response to consumer tax preparer complaints with the State Consumer Protection Board.. Amends the mandatory written and oral disclosure that tax preparers facilitating RAL must make to taxpayers before they enter into an agreement.

12 Bad Check Fee Law of 2009 imposes a $50 fee when a check, money order, or electronic funds withdrawal is returned without payment for reasons other than an error by the Department or the originating depository financial institution. If your payment is returned, we will send a separate bill for $50 for each return or other tax document associated with the returned payment If your payment is returned, we will send a separate bill for $50 for each return or other tax document associated with the returned payment Effective Date: January 1, 2009 for all authorized tax documents required to filed by that date.

13 Temporary NYS Temporary NYS Income Tax Rate Increase Imposes two new income tax rates for 2009 through The new second to highest tax rate is 7.85 percent and its taxable income bracket varies by filing status. The new second to highest tax rate is 7.85 percent and its taxable income bracket varies by filing status. The new top rate and brackets for all filing statuses is 8.97 percent of taxable income in excess of $500,000. The new top rate and brackets for all filing statuses is 8.97 percent of taxable income in excess of $500,000. A flat rate of 8.97 percent of taxable income will apply for taxpayers with NY adjusted gross income over $550,000. A flat rate of 8.97 percent of taxable income will apply for taxpayers with NY adjusted gross income over $550,000. Effective for tax year beginning on or after January 1, 2009.

14 Limit on Itemized Deductions Eliminates of the use of itemized deductions, except 50 percent of charitable contributions, for taxpayers with NYAGI of more than $1 million. Effective for tax year beginning on or after January 1, Effective for tax year beginning on or after January 1, NOTE: Taxpayers with NYAGI of over $525,000, are still limited to 50 percent of itemized deductions. NOTE: Taxpayers with NYAGI of over $525,000, are still limited to 50 percent of itemized deductions.

15 NY Higher Education Loan Program (NYHELP) Interest paid on NYHELPs student loans are deductible for purposes of any income or franchise tax imposed by the State or its political subdivisions. NYHELPs loans became available for students in the spring term of the academic year. Interest paid on NYHELPs student loans are deductible for purposes of any income or franchise tax imposed by the State or its political subdivisions. NYHELPs loans became available for students in the spring term of the academic year. NYHELPs borrowers will apply online through a dynamic interactive Web site, HESC Student Loan Marketplace. NYHELPs borrowers will apply online through a dynamic interactive Web site, HESC Student Loan Marketplace. This provision applies to interest paid on or after July 1, This provision applies to interest paid on or after July 1, 2009.

16 Voluntary Disclosure and Compliance Program Law of 2009 clarifies that the Voluntary Disclosure and Compliance Program enacted in 2008 allows for the disclosure of return information to the Internal Revenue Service and other taxing authorities. Effective for returns or reports filed under the VDC program on or after that date this became law. See TSB-M-09(6)I,(6)C,(5)M,(1)R,(5)S - Voluntary Disclosure and Compliance Program Legislative Change Regarding the Disclosure of Information

17 PAID (penalty and interest discount program) Chapter 501 of the Laws of 2009 established the Penalty and Interest Discount program to encourage eligible taxpayers to pay off their eligible tax liabilities that are at least three years old. The program will start January 15, To take advantage of the programs savings, eligible taxpayers must make all payments by the programs expiration date, March 15, Chapter 501 of the Laws of 2009 established the Penalty and Interest Discount program to encourage eligible taxpayers to pay off their eligible tax liabilities that are at least three years old. The program will start January 15, To take advantage of the programs savings, eligible taxpayers must make all payments by the programs expiration date, March 15, Taxpayers can save: Taxpayers can save: 80% of accrued penalty and interest on unpaid bills issued on or before December 31, % of accrued penalty and interest on unpaid bills issued on or before December 31, % of accrued penalty and interest on unpaid bills issued after December 31, 2003 and on or before December 31, % of accrued penalty and interest on unpaid bills issued after December 31, 2003 and on or before December 31, For more information see TSB-M-09(13)C, (14)I, (12)M, (10)R, (20)S, Penalty and Interest Discount Program (PAID) For more information see TSB-M-09(13)C, (14)I, (12)M, (10)R, (20)S, Penalty and Interest Discount Program (PAID)

18 The Military Spouses Residency Relief Act (S 475) The Act provides that the compensation of a non-military spouse of a service member cannot be taxed by a state if the spouse is only in that state to be with a military spouse who is stationed there. The Act provides that the compensation of a non-military spouse of a service member cannot be taxed by a state if the spouse is only in that state to be with a military spouse who is stationed there. This exemption from state income tax is actually broader than the exemption for service members who would still be subject to tax in the state on non-military compensation earned there. Nor does the law affect the taxation of income other than compensation. This exemption from state income tax is actually broader than the exemption for service members who would still be subject to tax in the state on non-military compensation earned there. Nor does the law affect the taxation of income other than compensation. NOTE: Under the volunteer income tax program a volunteer must be certified by the Internal Revenue Service to prepare personal income tax for the United States military. NOTE: Under the volunteer income tax program a volunteer must be certified by the Internal Revenue Service to prepare personal income tax for the United States military.

19 New York City School Tax Credit The credit amounts allowed for tax years beginning in 2009 and after are as follows: For married taxpayers filing joint returns and surviving spouses with incomes of $250,000 or less, the amount of the New York City school tax credit is $125. For unmarried individuals, heads of household, or married taxpayers filing separate returns with income of $250,000 or less, the amount of the New York City school tax credit is $62.50.

20 Where to file PAPER returns – new mailing address If enclosing a payment (check or money order), mail your return to: If enclosing a payment (check or money order), mail your return to: STATE PROCESSING CENTERSTATE PROCESSING CENTER PO BOX 15555PO BOX ALBANY NY ALBANY NY If not enclosing a payment, mail your return to: If not enclosing a payment, mail your return to: STATE PROCESSING CENTERSTATE PROCESSING CENTER PO BOX 61000PO BOX ALBANY NY ALBANY NY NOTE – address to mail payment with the IT-2105 (estimated tax payment) and address for IT-201-V (payment voucher for e-filing) are listed in the instructions of the form and these payments are sent to Binghamton NY

21 Filing a NYS personal Income Tax Return

22 2009 NYS Filing Requirements You must file a New York State Return if you are required to file a federal return You must file a New York State Return if you are required to file a federal return You did not have to file a federal return but if you had, your federal adjusted gross income plus NYS additions would have been $4000 or more ($3000 or more if you can be claimed on anothers person federal tax return) You did not have to file a federal return but if you had, your federal adjusted gross income plus NYS additions would have been $4000 or more ($3000 or more if you can be claimed on anothers person federal tax return) You want to claim a refund (or a credit) You want to claim a refund (or a credit)

23 2009 Exemptions Dependent exemption $1000 Dependent exemption $1000 No New York State personal exemption for the taxpayer and spouse allowed No New York State personal exemption for the taxpayer and spouse allowed

24 2009 Standard Deduction Single can be claimed on another's tax return Single cannot be claimed on another's tax return Married Filing Jointly Married Filing Separately Head of Household with qualifying person Qualifying Widow(er) with dependent child Filing Status $3,000 $7,500 $15,000 $10,500 $15,000 $7,500 Standard Deduction

25 Addition Adjustments to federal Income Public Employee 414(h) retirement contributions Public Employee 414(h) retirement contributions NYC flexible benefit program (IRC125) NYC flexible benefit program (IRC125) Interest on state and local bonds other than from New York State Interest on state and local bonds other than from New York State New Yorks 529 College Savings program New Yorks 529 College Savings program Transfer to another states programTransfer to another states program Non qualified distributionsNon qualified distributions

26 Subtraction Adjustment to Federal Income Income tax refund included in federal income Income tax refund included in federal income Interest on US Government Bonds Interest on US Government Bonds New Yorks 529 College Savings Program New Yorks 529 College Savings Program Pensions of New York State and Local Governments and the Federal Government Pensions of New York State and Local Governments and the Federal Government Pension exclusions (reached age 59 & ½) Pension exclusions (reached age 59 & ½) Social Security Income included in federal income Social Security Income included in federal income Interest on NYHELP paid after July 1, 2009 (s-19) Interest on NYHELP paid after July 1, 2009 (s-19)

27 IT-272 – Claim For College Tuition Credit For Qualified college tuition expenses which includes ONLY tuition required for the enrollment or attendance of the eligible student at an institution of higher education. For Qualified college tuition expenses which includes ONLY tuition required for the enrollment or attendance of the eligible student at an institution of higher education. Up to 10,000 per eligible student for undergraduate tuition expensesUp to 10,000 per eligible student for undergraduate tuition expenses 4% refundable credit or amount as an added itemized deduction4% refundable credit or amount as an added itemized deduction For tuition expense under $5000, the credit is the lesser of $ or the Tuition expense.For tuition expense under $5000, the credit is the lesser of $ or the Tuition expense. The expenses may be paid by cash, check, credit card, or with borrowed funds. The expenses may be paid by cash, check, credit card, or with borrowed funds. The eligible student does not need to be enrolled in a degree program or to attend full time for the expenses to qualify. The eligible student does not need to be enrolled in a degree program or to attend full time for the expenses to qualify. If you claim the student as a dependent, these payments are treated as paid by you. If you claim the student as a dependent, these payments are treated as paid by you.

28 IT -213 Empire State Child Credit Refundable for qualifying children ages 4-16 Resident taxpayers may claim a credit equal to the greater of a) $100 times the number of children who qualify for the Federal child tax credit, or b) 33 percent of the taxpayers allowed Federal child tax credit. If the child is claimed on someone elses return you are not eligible for the Empire State Child Tax Credit

29 IT-216 Child Care & Dependent Credit IT-216 Child Care & Dependent Credit The New York State child and dependent are credit is a minimum of 20% and as much as 110% of the federal credit, depending on the amount of your NY adjusted gross income. The New York State child and dependent are credit is a minimum of 20% and as much as 110% of the federal credit, depending on the amount of your NY adjusted gross income. If you qualify to claim the federal child and dependent care credit, you can claim the New York State credit (whether you actually claim the federal credit or not). If you qualify to claim the federal child and dependent care credit, you can claim the New York State credit (whether you actually claim the federal credit or not). NYS Child Care and Dependent Credit is fully refundable. NYS Child Care and Dependent Credit is fully refundable.

30 IT-215 – Earned Income Tax Credit You must claim the federal earned income credit for tax year % of the Federal Credit (additional 5% for NYC residents)30% of the Federal Credit (additional 5% for NYC residents) NOTE: NYS will conform with IRS increased amounts and increased dependent exemptions However, the New York State earned income credit must be reduced by the amount of any household credit you are allowed.

31 IT -209 Noncustodial Parent Earned Income Credit You may claim the noncustodial EIC only if you meet all of the following conditions for tax year 2009: You may claim the noncustodial EIC only if you meet all of the following conditions for tax year 2009: You must be a full-year New York State resident and at least 18 years of age,You must be a full-year New York State resident and at least 18 years of age, Must be a parent of a minor child(ren) with whom you do not reside,Must be a parent of a minor child(ren) with whom you do not reside, Must have an order in effect for at least one-half of the tax year requiring you to make child support payments payable through a Support Collection Unit (SCU) pursuant to Social Services Law section 111(h), and have paid an amount in child support in 2009 at least equal to the amount of current child support you were required to pay by all court orders.Must have an order in effect for at least one-half of the tax year requiring you to make child support payments payable through a Support Collection Unit (SCU) pursuant to Social Services Law section 111(h), and have paid an amount in child support in 2009 at least equal to the amount of current child support you were required to pay by all court orders.

32 IT -209 Noncustodial Parent Earned Income Credit The amount of credit is equal to the greater of: The amount of credit is equal to the greater of: 20% of the federal EIC that would have been allowed if the noncustodial child met the definition of having one qualifying child, OR 20% of the federal EIC that would have been allowed if the noncustodial child met the definition of having one qualifying child, OR 2.5 times the federal EIC that would have been allowed if you had satisfied the eligibility requirements, computed as if you had no qualifying children. 2.5 times the federal EIC that would have been allowed if you had satisfied the eligibility requirements, computed as if you had no qualifying children. If the amount of the credit is greater than your tax liability, the excess may be refunded without interest. If the amount of the credit is greater than your tax liability, the excess may be refunded without interest. If the credit is denied the taxpayer may request a review by calling the Child Support Helpline (CSH) at The CSH will send you a form to complete and return to the appropriate SCU for the review. If the credit is denied the taxpayer may request a review by calling the Child Support Helpline (CSH) at The CSH will send you a form to complete and return to the appropriate SCU for the review.

33 IT Claim For Volunteer Firefighter and Ambulance Worker Credit A $200 refundable credit or $400 if married filing joint and both spouses qualify A $200 refundable credit or $400 if married filing joint and both spouses qualify Full year residentFull year resident Active volunteer firefighters or ambulance workers for the entire year for which the credit is claimedActive volunteer firefighters or ambulance workers for the entire year for which the credit is claimed Must use IT-201-ATT therefore filing IT-201 use code 354 on Form IT-201-ATT, line 12.Must use IT-201-ATT therefore filing IT-201 use code 354 on Form IT-201-ATT, line 12. NOTE –You cannot claim the volunteer firefighters and ambulance workers credit if you receive a real property tax exemption that relates to your volunteer service under Real Property Tax Law (RPTL), Article 4, Title 2. NOTE –You cannot claim the volunteer firefighters and ambulance workers credit if you receive a real property tax exemption that relates to your volunteer service under Real Property Tax Law (RPTL), Article 4, Title 2.

34 IT-258 Refundable Nursing Home Credit Available for amount of assessment imposed on a residential health care facility pursuant to Public Health Law section 2807-d(2)(b).Available for amount of assessment imposed on a residential health care facility pursuant to Public Health Law section 2807-d(2)(b). The assessment must be separately stated and must be paid directly by the individual taxpayer claiming the credit. The assessment must be separately stated and must be paid directly by the individual taxpayer claiming the credit. Credit equals the assessment amount (not expenses) separately stated & accounted for on the billing statementCredit equals the assessment amount (not expenses) separately stated & accounted for on the billing statement Enter the amount and code 258 on Form IT-201-ATT, line 12, or Form IT-203-ATT, line 12. Enter the amount and code 258 on Form IT-201-ATT, line 12, or Form IT-203-ATT, line 12.

35 IT-214 Claim for Real Property Tax Credits for Renters and Home Owners NO CHANGES FOR 2009 INCOME less than $18,000. INCOME less than $18,000. ADJUSTED RENT less than $450. ADJUSTED RENT less than $450. MUST have paid real property taxes or rent MUST have paid real property taxes or rent MARKET VALUE OF HOME less than $85,000 MARKET VALUE OF HOME less than $85,000 MUST be a resident for the entire year MUST be a resident for the entire year CANNOT be claimed as a dependent CANNOT be claimed as a dependent

36 IT-214 definitions Members of household - all who share your residence and its furnishings, facilities, and accommodations whether they are related to you or not. Members of household - all who share your residence and its furnishings, facilities, and accommodations whether they are related to you or not. Household gross income - income from all sources that you and members of your household receive. It does not include food stamps, medicare, medicaid, scholarships, grants, surplus food or other relief Household gross income - income from all sources that you and members of your household receive. It does not include food stamps, medicare, medicaid, scholarships, grants, surplus food or other relief Adjusted rent – the rent paid after subtracting any charges for heat, gas, electricity, furnishings, or board. Do not include any subsidized part of your rental charges in adjusted rent. Adjusted rent – the rent paid after subtracting any charges for heat, gas, electricity, furnishings, or board. Do not include any subsidized part of your rental charges in adjusted rent. Property taxes paid - Property taxes paid - In computing the amount of school district property taxes paid, include only the amount of school district property taxes paid.

37 IT-249 – Long-term Care Insurance Credit The long-term care insurance credit is equal to 20% of the premiums you paid during the tax year for the purchase of, or for continuing coverage under a qualifying long-term care insurance policy.The long-term care insurance credit is equal to 20% of the premiums you paid during the tax year for the purchase of, or for continuing coverage under a qualifying long-term care insurance policy. Any unused credit may be carried over to future tax years. The Credit is nonrefundable.Any unused credit may be carried over to future tax years. The Credit is nonrefundable. A qualifying long-term care insurance policy is one that is approved by the New York State Superintendent of Insurance under Insurance Law section 1117(g); and is a qualified long-term care insurance contract under Internal Revenue Code (IRC) section 7702B.A qualifying long-term care insurance policy is one that is approved by the New York State Superintendent of Insurance under Insurance Law section 1117(g); and is a qualified long-term care insurance contract under Internal Revenue Code (IRC) section 7702B.

38 Resident tax credit – IT-112R Resident tax credit – IT-112R If you are a full-year or part-year resident of New York State and if any part of your income was taxed by another state, local government, or the District of Columbia, you may claim a credit against your New York State tax. If you are a full-year or part-year resident of New York State and if any part of your income was taxed by another state, local government, or the District of Columbia, you may claim a credit against your New York State tax. This credit is allowable only for the portion of the tax that applies to income received in the other taxing authority while you were a New York State resident. This credit is allowable only for the portion of the tax that applies to income received in the other taxing authority while you were a New York State resident.

39 IT-241 -Claim for Clean Heating Fuel Credit The clean heating fuel credit has been reinstated to include purchases of bioheat on or after January 1, 2008, and before January 1, The clean heating fuel credit has been reinstated to include purchases of bioheat on or after January 1, 2008, and before January 1, The credit of.01 per gallon for each percent of biodiesel included in the bioheat, not to exceed $.20 per gallon. The bioheat must be used for space heating or hot water production for residential purposes within New York State. The credit of.01 per gallon for each percent of biodiesel included in the bioheat, not to exceed $.20 per gallon. The bioheat must be used for space heating or hot water production for residential purposes within New York State.

40 Amended Income Tax Returns IT-201X, IT-150X, and IT-203X Amended returns must be completed as if you were filing an original return. Amended returns must be completed as if you were filing an original return. Attach to the IT-150-X, IT-201-X or IT-203-X amended return any: Attach to the IT-150-X, IT-201-X or IT-203-X amended return any: amended credit claim or other form that you attached to your original return (do not attach original version)amended credit claim or other form that you attached to your original return (do not attach original version) new credit form or any other form that you are filing for the first time with your amended returnnew credit form or any other form that you are filing for the first time with your amended return copy of any tax form, credit form, IT-2 or related withholding form, or other form that you attached to your original return and are not amendingcopy of any tax form, credit form, IT-2 or related withholding form, or other form that you attached to your original return and are not amending

41 New York State and Local Sales Tax Line 35 on IT150 or line 59 on IT-201 NYS Sales Tax is owed if you purchase property or a service delivered to YOU in New York State without payment of sales and use tax; such purchases through the internet, by catalog, or from television shopping channels NYS Sales Tax is owed if you purchase property or a service delivered to YOU in New York State without payment of sales and use tax; such purchases through the internet, by catalog, or from television shopping channels most tangible personal property is subject to tax most tangible personal property is subject to tax clothing clothing jewelry jewelry electronic equipment electronic equipment furniture furniture prewritten software books (excluding text books) compact disk.videos, etc.

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43 Volunteer E-filing I am a volunteer return preparer. Am I subject to the mandate? I am a volunteer return preparer. Am I subject to the mandate? No. Volunteers who are not compensated for preparing returns are not tax return preparers within the meaning of the law.No. Volunteers who are not compensated for preparing returns are not tax return preparers within the meaning of the law. I am a volunteer, must a register under the new tax preparer registration program? I am a volunteer, must a register under the new tax preparer registration program? No. Volunteers who are not compensated for preparing returns are not tax return preparers within the meaning of the law. No. Volunteers who are not compensated for preparing returns are not tax return preparers within the meaning of the law.

44 Acknowledgements On a Fed/State filing, if the Federal tax return is rejected, the state return is rejected, too. On a Fed/State filing, if the Federal tax return is rejected, the state return is rejected, too. Once we receive a return, we will accept or reject the return and issue an acknowledgement. Once we receive a return, we will accept or reject the return and issue an acknowledgement. The New York acknowledgement is generally issued hours after the return is e-filed. The New York acknowledgement is generally issued hours after the return is e-filed. The NYS Help Desk number for E-filing is (800) The NYS Help Desk number for E-filing is (800)

45 USING TAX WISE MUST Enter on NYS Tax Form: School District Name School District Code County of Resident Tax Wise will automatically calculate the Household Credit Line 59 – NYS Sales Tax must have an entry IT214 and NYC-210 are the only forms we accept as stand alone. However, if e-filing must be accompanied by a person income tax return – IT-201, IT-203 or IT-150.

46 Tax Credits automatically calculated on New York State software when calculated on IRS return Household Credit Household Credit IT Empire Child Tax Credit – From federal child tax credit IT Empire Child Tax Credit – From federal child tax credit IT-215 – Earned income tax credit – From federal earned income tax credit IT-215 – Earned income tax credit – From federal earned income tax credit IT-216 – Child care and Dependent Credit – From federal 2441 IT-216 – Child care and Dependent Credit – From federal 2441

47 Addition adjustment on NYS return The 414H and amount must be entered on line 14 on the W-2. The 414H and amount must be entered on line 14 on the W-2. IF NYC IRC 125 must be entered on box 14 of the W-2 IF NYC IRC 125 must be entered on box 14 of the W-2 Other Addition modifications must be included on proper addition lines of the IT-201 Other Addition modifications must be included on proper addition lines of the IT-201

48 Subtraction adjustments on NYS return Must be entered on appropriate line of NYS return Must be entered on appropriate line of NYS return Income tax refund is automatically subtracted Income tax refund is automatically subtracted Social security income is automatically subtracted Social security income is automatically subtracted Pensions - Must indicated on 1099 if the pensions is from NYS and local government of if private pension entitled to exclusion if taxpayer reaches age 59 & ½. Pensions - Must indicated on 1099 if the pensions is from NYS and local government of if private pension entitled to exclusion if taxpayer reaches age 59 & ½.

49 PRIVATE - If a taxpayer is 59 ½ or older, he or she can subtract up to $20,000 from the qualifying pension and annuity income from his or her federal adjusted gross income (1099R) To enter the amount on line 29 of the IT-201 page 2 (or line 18,page 1, on the IT-150), enter the amount in the 1099R, and put an x in box 1 which is located left to box 13/local taxes. PUBLIC - Pensions of New York State, local government and the federal government (form 1099R) The entire pension is excluded & entered on line 26, page 2 onIT- 201(or line 16,page 1 on the IT-150). To enter the amount on line 26 of the IT-201 page 2, enter the amount in the 1099R, and put an x in box 2 which is located left to box 13/local taxes Pension subtraction on Tax Wise

50 What determines if an amount that an individual receives as a pension or annuity qualifies for the $20,000 pension and annuity exclusion on the NYS personal Income tax return? What determines if an amount that an individual receives as a pension or annuity qualifies for the $20,000 pension and annuity exclusion on the NYS personal Income tax return? The pension and annuity income must be included in federal AGI. The pension and annuity income must be received in periodic payments (except IRA or Keogh). The pension and annuity income must be attributable to personal services performed by such individual, prior to such individuals retirement from employment. Such individual receiving the pension must be 59 ½ of age or over. The pension and annuity income must be included in federal AGI. The pension and annuity income must be received in periodic payments (except IRA or Keogh). The pension and annuity income must be attributable to personal services performed by such individual, prior to such individuals retirement from employment. Such individual receiving the pension must be 59 ½ of age or over. Private Pension Subtraction

51 Advisory decisions TSBA -09 (09)I and 09(10)I - Whether distributions from an IRA that was funded with assets rolled over from a IRC §403(b) tax-deferred annuity plan are subject to New York State personal income tax. TSBA -09 (09)I and 09(10)I - Whether distributions from an IRA that was funded with assets rolled over from a IRC §403(b) tax-deferred annuity plan are subject to New York State personal income tax. TSB-A-09 (07) I - Whether distributions from an Individual Retirement Account (IRA) are subject to personal income tax if the taxpayer rolls over a Federal Reserve Bank of New York 401K Thrift Plan to the IRA. TSB-A-09 (07) I - Whether distributions from an Individual Retirement Account (IRA) are subject to personal income tax if the taxpayer rolls over a Federal Reserve Bank of New York 401K Thrift Plan to the IRA.

52 E-file Signature Requirements There is no need to mail Forms W-2 or other supporting documents to the Tax Department. There is no need to mail Forms W-2 or other supporting documents to the Tax Department. Volunteers are required to have the taxpayer sign the TR-579-IT for each return that is e-filed. The TR-579-IT should be retained by the volunteer with the IRS (federal) signature document. Volunteers are required to have the taxpayer sign the TR-579-IT for each return that is e-filed. The TR-579-IT should be retained by the volunteer with the IRS (federal) signature document. Volunteers should: Volunteers should: enter their SITE ID number where requesting Federal ID number or SS number enter their SITE ID number where requesting Federal ID number or SS number and Name of Site where requesting name of practitioner.and Name of Site where requesting name of practitioner. Ignore the line Preparers NYTPRIN. This is for paid preparers that are required to register.Ignore the line Preparers NYTPRIN. This is for paid preparers that are required to register.

53 E-filing a personal income tax return 2009 The NYS forms IT-2, IT-1099-R and IT-1099-UI are for paper filing only; if software is used to prepare the return and the return is NOT E-filed, print IT-2 for all W-2s. The NYS forms IT-2, IT-1099-R and IT-1099-UI are for paper filing only; if software is used to prepare the return and the return is NOT E-filed, print IT-2 for all W-2s. Print IT-1099R if there is NYS withholding tax on the pensions. Print IT-1099R if there is NYS withholding tax on the pensions. Print IT-1099 UI if withholding on unemployment insurance Print IT-1099 UI if withholding on unemployment insurance

54 Payment Options on E-filing Electronic Funds Transfer (EFT) from a checking or savings account. EFT allows a taxpayer to defer payment until the return due date, regardless of the filing date of the return. We will not debit the account for more than the amount authorized by the taxpayer. We will reject returns if we determine that the account information is incorrect. Credit Card Mail in a check with Form IT-201-V

55 Direct Deposit for Tax Refunds e-file with Direct Deposit is the fastest way to get a refund. e-file with Direct Deposit is the fastest way to get a refund. If a computational error results in a balance due on the return, we wont use the account information provided for a direct deposit to debit the taxpayers account. If a computational error results in a balance due on the return, we wont use the account information provided for a direct deposit to debit the taxpayers account. We will reject returns if we determine that the account information is incorrect. We will reject returns if we determine that the account information is incorrect. NYS will not support split refunds NYS will not support split refunds

56 Extensions Form IT-370,will extend the due date for 6 months Form IT-370,will extend the due date for 6 months You may e-file extensions using your e-file software or directly on our website. You may e-file extensions using your e-file software or directly on our website. You can file Form IT-370 on-line Payment options for our on-line extension include ACH debit, credit card and checks. You can file Form IT-370 on-line Payment options for our on-line extension include ACH debit, credit card and checks. No signature requirement if no tax due. No signature requirement if no tax due.

57 Estimated taxes If you are self-employed, if you receive a pension or annuity, or if you receive any other income from which taxes are not withheld, you may be required to make estimated income tax payments. If you are self-employed, if you receive a pension or annuity, or if you receive any other income from which taxes are not withheld, you may be required to make estimated income tax payments. You are not required to fill estimated taxes if you expect to owe less than $300 of New York State, city of New York, or city of Yonkers income tax after deducting tax withheld and credits that you are entitled to claim. You are not required to fill estimated taxes if you expect to owe less than $300 of New York State, city of New York, or city of Yonkers income tax after deducting tax withheld and credits that you are entitled to claim. Payment - April 15, June 15, Sept 15 and Jan 15 Payment - April 15, June 15, Sept 15 and Jan 15 NYS does not provide statement of accounts and does not provide vouchers (IT-2105V). NYS does not provide statement of accounts and does not provide vouchers (IT-2105V). The easiest and fastest way for individuals to make estimated tax payments is through our Online tax Center. Individuals can also view and reconcile their estimated tax payments electronically. The easiest and fastest way for individuals to make estimated tax payments is through our Online tax Center. Individuals can also view and reconcile their estimated tax payments electronically.

58 The place for all electronic services

59 Due date of the Income tax return Filing due dates for your 2009 tax return Income tax return April 15, 2010 Request for extension of time to file April 15, 2010 NOTE: Free e-filing available by visiting Qualifications for free e-filing vary by software providers. Generally, if a taxpayer qualifies for EITC, or under the age of 25, or over 65, or active military or Federal adjusted gross income under $56,000. Software providers include: OnLine Taxes TaxSlayer.com TurboTax I-CAN!

60 The material included in this slide show is intended only to highlight the program as of the date presented. For more comprehensive information, please refer to our TSB-Ms, forms, instructions, publications,tax laws, and amendments. Thank You


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