FULL List to New York Tax Forms
Individual Income Tax Forms
Form IT-201 Resident Income Tax Return
Form IT-203 Nonresident and Part-Year Resident Income Tax Return
Corporate Income Tax Forms
Form CT-3 General Business Corporation Franchise Tax Return
Form CT-3-S New York S Corporation Franchise Tax Return
Sales Tax Forms
Form St- 100 Quarterly Sales and Use Tax Return
Form ST-101 Local Annual Sales and Use Tax Return
Property Tax Forms
Form RP-485A Application for Real Property Tax Exemption ( Residential – Commercial )
Form RP-485B Application for Real Property Tax Exemption
Primary Concerns:
Most of the concerns over New York State’s economic condition can be summed up in one word: budget. At present in 2010, the budget deficit of New York State is projected to $9.2 billion dollars, with cash flow presently so poor that many payments to essentially state institutions needed to be deferred.
Most public of this was a cash deferment of $2 billion to New York public schools. The debate over how to solve this problem has been bitter and derisive, as all sides are unable to agree on a course of action.
Nearly everyone has come to the central conclusion that the state budget has escalated out of control, though few are sure of how to scale it back.
Many of the proposed cuts to state spending would inevitably come out of services the electorate feels are essential, such as schools, hospitals, transportation, and public safety, which inevitably leaves many taxpayers deeply embittered about the current state of the budget.
Combined in this bitterness is the fact that New York, statewide, has some of the highest taxes in the nation. Property taxes, especially, are amongst the highest in the nation, with some counties actually supporting the absolute highest taxes in the nation.
Sales taxes are also extremely high in most areas, as is gasoline tax. The cost of living, as a result, is extremely high in the state, with large portions of household going directly to taxes, especially property taxes.
The problem with this, of course, is that despite all of this taxation, the budget deficit still grew to tremendous proportions. Future regressive taxation is not really considered an option, as most New Yorkers state wide considered them already taxed to the breaking point.
This would leave the only option apparently being to slash the state budget, but that would involve giving up popular services that most everyone feels they are entitles to as part of the high taxes that they pay.
The solution to this problem because of this impasse, will not be easy, and may even get worse. New York State, as a result of its property taxes and high cost of living, is losing its population at a fastest rate of any state in the country.
Less residents mean less tax revenue for a state that is already facing a staggering shortfall, which means those who remain may have to suffer an additional burden. The ultimate decision of how to solve this problem still needs to be solved, though it is clear that far too many are “voting with their feet;” leaving New York State before the already dire tax situation gets much worse.
Income Taxes:
Income taxes in New York State are some of the most complicated in the nation, due to variations between the state and New York City, which while incorporated into the state, retains many broad powers of taxation. The City of Yonkers also implements a additional income tax surcharge of 5% in addition to state income taxes.
In New York State, all residents, part time residents, and individuals earning income from inside New York State must file an income tax return. Estates and trusts are also taxable.
Most individuals must fill out an IT-150 form, which for residents making less than $900,000 a year. New York State has very precise taxation tables but by the large they follow a set progressive pattern, with staggered rates, outlined below.
The first $16,000 has a rate of 4%, with the next $6000 being 4.5%. This means that if someone makes $20,000, then the first $16,000 is taxed at 4% while the next $4,000 is taxed at 4.5%.
The next $4,000 over $22,000 is taxed at 5.25%, with the next $14,000 at 5.9%. The next $110,000 is 6.85% and for the next $350,000 it is 7.375%.
After $500,000, which is what all of the previous increments add up to, the rate is 7.7%. The amounts are different for Married Filing Jointly or for Head of Household are slightly different, and require strict adherence to the state’s income tax tables.
New York City has its own tax tables as well, which are added to state taxes. Single individuals, married partners filing jointly, resident estates and trusts are charges a rate of 2.907% for incomes that are $12,000 or less. Between $12,000 and $25,000 its $349 (which is 2.907% of $21,600) plus 3.534% of excess over the base of $12,000.
Between $25,000 and $50,000 the tax is $808 plus 3.591% of excess over the base. Over $50,000 the tax is $1,706 plus 3.648% off all excess over $50,000.
For married individuals filing joint returns or resident surviving spouses (widows or widowers), the rates remain the same but the bracketing is different. Income of $21,600 or less, the rate is 2.907%. Between $21,600 and $45,000 the tax is $628 plus 3.534% of excess over the base.
Between $45,000 and $90,000 it is $1,455 plus 3.591% of excess over the base. Over $90,000 the tax is $3,701 plus 3.648% of excess over $90,000.
Heads of household also retain the same rate. $14,400 or less the rate is 2.907%. Between $14,400 and $30,000 the tax is $419 plus 3.534% of excess over the base. Between $30,000 and $60,000 the rate is $970 plus 3.591% of excess over the base. Over $60,000 the tax is $2,047 plus 3.648% of all income over $60,000.
In Yonkers, the rate is ultimately determines based on deductions that are applicable, but as a rule, the implementation is an additional tax surcharge of about 5%.
Corporate Income Taxes:
Corporate tax rates in New York State are far more simplistic than their income tax counterparts, as the corporate income tax in New York State is a flat 7.1%. Corporations, in New York’s definition, refers to virtually any company save for partnerships, which are exempt.
In New York City, however, corporations who have resides in the city, has an office of representation in the city, do business in the city, or are part of a partnership that conducts business in the city are subject to an additional General Corporation Tax (or in the case of financial institutions, a Banking Corporation Tax). These taxes change annually are extremely fluid, so a business not exempt from the tax is responsible for keeping track with the current rate.
The state also implements a number of taxes based on specific commercial services that may be applicable to many businesses, based on the forms of service the business provides.
Property Taxes:
New York State can lay the unfortunate claim to having some of the highest property taxes in the country, with Westchester County, to the north of New York City, having the highest in the nation. In many cases, as much as 8 percent of household incomes AFTER taxes go toward property taxes. It is a situation that has escalated dramatically since the mid-1990s, in some cases more than doubling, which is a rate far faster than that of inflation.
Property taxes in New York State are determined on a county to county basis through a assessment of real property, performed by the county assessor, by the tax rate or levy determined by the county. Rates throughout New York State vary, but as a rule have become extremely high as budget shortfalls have increased.
The assessment system has also drawn a great deal of controversy, as due to high property taxes, properties are selling far below their assessed worth, which means that many feel that property taxes in many areas are over-inflated as a result.
Personal property is exempt from sales tax in New York State and all counties.
Sales Taxes:
Sales tax in New York State is 4%, but every county and New York City add additional sales taxes to this base, usually making the actual taxes for consumers placed usually between 3 to 4.75% depending on locality. New York City presently has an 8.875% sales tax. New York City and many other districts implement as part of their sales tax a surtax that supports local transportation systems.
The state has eliminated a sales tax on all articles of clothing under $110, though most counties still charge a sales tax on all clothing (New York City, by distinction, honors the state’s exemption).
New York State as also begun to aggressively pursue sales taxes in items purchases online or via mail order and shipped into the state (which would normally be classified under the auspices of a use tax). Therefore many online vendors have begun to directly implement these taxes when making shipments to New York, provided their sales receipts on shipments to New York total more than $10,000 annually.
New York state also charges a tax of $2.75 per pack of cigarettes, with New York City’s tax of $4.25 (state tax plus city tax combined), being the highest in the country. Due to local county fuel taxes, New York also has some of the highest gas prices in the nation.
Tax Forms:
New York State employs multiple tax forms, but the core one applicable to most residents is the IT-150 and its variants. The IT-150 is for all individuals, couples, estates, and trusts who reside in the state full time who have less than $900,000 per year in earned income. The IT-201 and its variants and addendum are for residents who have a federally taxable income of more than $900,000 per year. The IT-203 is for part time residents or nonresidents who drew an income from within New York State during that tax year.
Introduction
New York City is the largest city in the United States, renowned for its iconic landmarks, and rich cultural heritage. Known as the city that never sleeps, New York is a bustling metropolis that is home to a diverse population that drives the city’s economy. However, with great economic opportunities come great financial responsibilities. One such responsibility is paying taxes. In this article, we will delve into the intricacies of New York tax, detailing the types of taxes, tax rates, and regulations.
Overview of New York Tax
The state of New York relies heavily on various forms of taxes to fund its activities. According to data from the New York State Department of Taxation and Finance, the state tax collected in 2020 totaled $82.7 billion, the majority of which came from personal income tax. New York’s tax system is progressive, which means that individuals who earn more pay a larger percentage of their income in tax. This is in line with the state’s philosophy of using taxes to address income inequality and provide essential services to the less fortunate.
Types of Taxes in New York
New York has several types of taxes that apply to different income groups and industries. These include:
1. Personal Income Tax (PIT)
Personal Income Tax (PIT) is the primary source of revenue for New York. It applies to individuals who are residents or non-residents of the state and earn an income. According to the New York State Department of Taxation and Finance, the current PIT rates range from 4% to 8.82%, depending on an individual’s income. Residents of New York City are subject to an additional city tax, which ranges from 3.078% to 3.876%.
2. Sales Tax
The sales tax in New York applies to most goods and services sold in the state. The current rate is 4%, with certain localities imposing an additional 4% tax, bringing the total tax rate to 8%. However, some items are exempt from sales tax, such as prescription drugs, clothes, and food.
3. Property Tax
Property tax in New York is levied on real estate property. The tax rate varies depending on the jurisdiction, with the average rate being 0.92%. The state also offers various property tax relief programs to eligible residents, such as the Senior Citizens’ Homeowners’ Exemption and the Disabled Homeowners’ Exemption.
4. Estate Tax
The estate tax in New York applies to estates of individuals who died after April 1, 2014, and whose estates are worth more than $5.93 million. The current tax rate ranges from 3.06% to 16%, depending on the size of the estate.
5. Corporate Tax
Corporate tax in New York applies to businesses that operate in the state. The current tax rate is 6.5% for most businesses, with a higher rate of 9% for capital gains and earning from certain types of intangible property.
6. Excise Taxes
Excise taxes are levied on specific goods or services, such as cigarettes, alcohol, motor fuels, and telecommunications services. The rates for these taxes vary depending on the commodity, with cigarettes being taxed at $4.35 per pack, and alcohol taxed at 16%.
New York Tax Enforcement and Compliance
The New York State Department of Taxation and Finance is responsible for enforcing tax laws and ensuring that taxpayers comply with their tax obligations. The agency has a range of enforcement tools at its disposal, including audits, criminal prosecutions, and penalties for non-compliance.
Audits
The department conducts audits on individuals and businesses to ensure compliance with New York tax laws. Audits can be conducted via mail, phone, or in-person. During an audit, the department reviews a taxpayer’s records and financial statements to verify that they have accurately reported their income and taxes owed.
Criminal Prosecutions
The department can also initiate criminal investigations and prosecutions against taxpayers who engage in tax fraud or other illegal activities related to tax. These activities include underreporting income or overstating deductions, filing false returns, and failure to file tax returns.
Penalties
Non-compliance with New York tax laws can result in several penalties. These include fines, liens, and levies on assets. Additionally, the department can request taxpayers to pay interest on any unpaid taxes.
Conclusion
New York tax is a crucial source of revenue for the state, contributing significantly to essential services such as healthcare, education, and infrastructure development. The state has a wide range of taxes, including personal income tax, sales tax, property tax, and excise tax, among others. New York’s tax system is progressive, meaning that high earners pay a larger percentage of their income in tax. The state also has robust enforcement mechanisms to ensure compliance with tax laws, such as audits, criminal prosecutions, and penalties. As such, it is essential for individuals and businesses in New York to understand their tax obligations and comply with tax regulations.
