www.nystax.gov

Summary of 2009 New York State Tax For Volunteer Tax Preparers

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.

NYS Tax Contact Information

Tax Practitioners Hot Line: 1 (888) 238-0955Tax Practitioners Hot Line: 1 (888) 238-0955

Forms Control Unit phone number: (518) 244-1911 Forms Control Unit phone number: (518) 244-1911 TP-3 Forms Order (Can order TP-300) TP-3 Forms Order (Can order TP-300)

E-file Helpdesk line: 1-800-353-1096E-file Helpdesk line: 1-800-353-1096

Online Tax Center Assistance 1-877-341-9378Online Tax Center Assistance 1-877-341-9378

1099-G: 1 (866) 698-2946 or (518) 485-0799l 1099-G: 1 (866) 698-2946 or (518) 485-0799l

www.nystax.govwww.nystax.gov

Resources Available for Volunteers TP -300 Quick Reference GuideTP -300 Quick Reference Guide

NYS intake sheet – to determine credits and adjustmentsNYS intake sheet – to determine credits and adjustments

Publication 80 – General Information for NYS residentsPublication 80 – General Information for NYS residents

Publication 310NY – NYS Earned Income Tax Credit

Pub10-W-FAQ’s -College Tuition Credit or Itemized Deduction Pub10-W-FAQ’s -College Tuition Credit or Itemized Deduction

Publication 94 – Should I be Paying Estimated taxesPublication 94 – Should I be Paying Estimated taxes

Publication 84- Handbook for Publication 84- Handbook for ee-filers of 2008 PIT Returns. -filers of 2008 PIT Returns. 

Publication 99IND-NYS/NYC Income tax credits for Individuals Publication 99IND-NYS/NYC Income tax credits for Individuals

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 Publication 36 - General Information for Senior Citizens and Retired Persons Retired Persons

Publication 38 – Your Rights as a TaxpayerPublication 38 – Your Rights as a Taxpayer

Publication 46 - Common Reasons for Income Tax AdjustmentsPublication 46 - Common Reasons for Income Tax Adjustments

Publication 140-W-FAQs: New York State Lottery Winners - Publication 140-W-FAQs: New York State Lottery Winners - What are my Tax Responsibilities for New York State What are my Tax Responsibilities for New York State

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-2

131 Required information missing for qualifying person reported on Form IT-216.

106 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-215.22 Name of care provider not reported on Form IT-216.

Changes for NYS Department of Taxation and FinanceChanges for NYS Department of Taxation and Finance

Cost Reduction initiatives for 2009: Cost Reduction initiatives for 2009:

• Eliminated walk-in services for taxpayers Eliminated 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, We are no longer mailing Form 1099-G, Statement for Statement for Recipients of StateRecipients of State

• Youtube videos to assist taxpayers with complying to NYS Youtube videos to assist taxpayers with complying to NYS tax laws. tax laws.

What’s New for 2009 ?

Registration required for certain Registration required for certain paid paid tax return preparers and tax return preparers and facilitators (refund anticipation loan facilitators)facilitators (refund anticipation loan facilitators)

New York State personal income tax rates increased on certain New York State personal income tax rates increased on certain taxable incomestaxable incomes

New York itemized deduction limitation changedNew York itemized deduction limitation changed

New fee for payments returned by banksNew fee for payments returned by banks

New mailing address for returns with paymentsNew mailing address for returns with payments

New York City school tax credit reducedNew York City school tax credit reduced

NYHELP student loan interest deductionNYHELP student loan interest deduction

Refund Anticipation Loan Facilitators RegistrationRefund Anticipation Loan Facilitators Registration

AA facilitator facilitator  is a person who individually or in conjunction or   is a person who individually or in conjunction or cooperation with another person:cooperation with another person:

• solicits the execution of, processes, receives, or accepts an solicits the execution of, processes, receives, or accepts an application or agreement for a refund anticipation loan or application or agreement for a refund anticipation loan or refund anticipation check;refund anticipation check;

• serves or collects upon a refund anticipation loan or refund serves or collects upon a refund anticipation loan or refund anticipation check; oranticipation 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 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 tax return preparer, for registration purposes, can still be considered a facilitator and be subject to the registration requirementsconsidered a facilitator and be subject to the registration requirements

Requirement of Tax and Finance to Create a Task Force

The Task Force will examine the need for additional oversight of The Task Force will examine the need for additional oversight of tax return preparers.tax return preparers.

The Task Force will include representatives from NYS Department The Task Force will include representatives from NYS Department of Taxation and Finance, representatives from Office of Temporary of Taxation and Finance, representatives from Office of Temporary and Disability Assistance, practitioner participants, CPAs , etcand Disability Assistance, practitioner participants, CPAs , etc

The Task Force will prepare a report making recommendations for The Task Force will prepare a report making recommendations for the appropriate professional qualifications, including, but not the appropriate professional qualifications, including, but not limited to, minimum educational qualifications and continuing limited to, minimum educational qualifications and continuing education requirements for tax return preparers. education requirements for tax return preparers.

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. .

Bad Check FeeBad Check Fee

Law of 2009 imposes a $50 fee when a check, money order, Law of 2009 imposes a $50 fee when a check, money order, or electronic funds withdrawal is returned without payment for or electronic funds withdrawal is returned without payment for reasons other than an error by the Department or the reasons other than an error by the Department or the originating depository financial institution.originating depository financial institution.

If your payment is returned, we will send a separate bill for If your payment is returned, we will send a separate bill for $50 for each return or other tax document associated with the $50 for each return or other tax document associated with the returned paymentreturned payment

Effective Date: January 1, 2009 for all authorized tax Effective Date: January 1, 2009 for all authorized tax documents required to filed by that date.documents required to filed by that date.

Temporary NYS Temporary NYS Income Tax Rate Increase

Imposes two new income tax rates for 2009 through 2011.

The new “second to highest” tax rate is 7.85 percent and its The new “second to highest” tax rate is 7.85 percent and its taxable income bracket varies by filing status.taxable income bracket varies by filing status.

The new top rate and brackets for all filing statuses is 8.97 The new top rate and brackets for all filing statuses is 8.97 percent of taxable income in excess of $500,000. percent of taxable income in excess of $500,000.

A flat rate of 8.97 percent of taxable income will apply for A flat rate of 8.97 percent of taxable income will apply for taxpayers with NY adjusted gross income over $550,000.taxpayers with NY adjusted gross income over $550,000.

Effective for tax year beginning on or after January 1, 2009.Effective for tax year beginning on or after January 1, 2009.

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, 2009.Effective for tax year beginning on or after January 1, 2009.

NOTE: Taxpayers with NYAGI of over $525,000, are still NOTE: Taxpayers with NYAGI of over $525,000, are still limited to 50 percent of itemized deductions. limited to 50 percent of itemized deductions.

NY Higher Education Loan Program (NYHELP)NY Higher Education Loan Program (NYHELP)

Interest paid on NYHELPs student loans are deductible for purposes of Interest paid on NYHELPs student loans are deductible for purposes of any income or franchise tax imposed by the State or its political any income or franchise tax imposed by the State or its political subdivisions. NYHELPs loans became available for students in the spring subdivisions. NYHELPs loans became available for students in the spring term of the 2009-10 academic year. term of the 2009-10 academic year.

NYHELPs borrowers will apply online through a dynamic interactive Web NYHELPs borrowers will apply online through a dynamic interactive Web site, HESC Student Loan Marketplace. site, HESC Student Loan Marketplace. www.hesc.com/content.nsf/SFC/New_York_Higher_Education_Loan_Program_NYHELPswww.hesc.com/content.nsf/SFC/New_York_Higher_Education_Loan_Program_NYHELPs

This provision applies to interest paid on or after July 1, 2009.This provision applies to interest paid on or after July 1, 2009.

Voluntary Disclosure and Compliance Program

Law of 2009 clarifies that the Voluntary Disclosure and Law of 2009 clarifies that the Voluntary Disclosure and Compliance Program enacted in 2008 allows for the Compliance Program enacted in 2008 allows for the disclosure of return information to the Internal Revenue disclosure of return information to the Internal Revenue Service and other taxing authoritiesService and other taxing authorities. .

Effective for returns or reports filed under the VDC program Effective for returns or reports filed under the VDC program on or after that date this became law. 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

PAID (penalty and interest discount program)

Chapter 501 of the Laws of 2009 established the Penalty and Interest Chapter 501 of the Laws of 2009 established the Penalty and Interest Discount program to encourage eligible taxpayers to pay off their Discount program to encourage eligible taxpayers to pay off their eligible tax liabilities that are at least three years old. The program will eligible tax liabilities that are at least three years old. The program will start January 15, 2010. To take advantage of the program’s savings, start January 15, 2010. To take advantage of the program’s savings, eligible taxpayers must make all payments by the program’s eligible taxpayers must make all payments by the program’s expiration date, March 15, 2010.expiration date, March 15, 2010.

Taxpayers can save: Taxpayers can save:

• 80% of accrued penalty and interest on unpaid bills issued on or 80% of accrued penalty and interest on unpaid bills issued on or before December 31, 2003 before December 31, 2003

• 50% of accrued penalty and interest on unpaid bills issued after 50% of accrued penalty and interest on unpaid bills issued after December 31, 2003 and on or before December 31, 2006. December 31, 2003 and on or before December 31, 2006.

For more information see For more information see TSB-M-09(13)C, (14)I, (12)M, (10)R, TSB-M-09(13)C, (14)I, (12)M, (10)R, (20)S, Penalty and Interest Discount Program (PAID)(20)S, Penalty and Interest Discount Program (PAID)  

The Military Spouses Residency Relief Act (S 475) The Military Spouses Residency Relief Act (S 475)

The Act provides that the compensation of a non-military spouse 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 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 only in that state to be with a military spouse who is stationed there. there.

This exemption from state income tax is actually broader than the This exemption from state income tax is actually broader than the exemption for service members who would still be subject to tax in exemption for service members who would still be subject to tax in the state on non-military compensation earned there. Nor does the the state on non-military compensation earned there. Nor does the law affect the taxation of income other than compensation.law affect the taxation of income other than compensation.

NOTE: Under the volunteer income tax program a volunteer NOTE: Under the volunteer income tax program a volunteer must be certified by the Internal Revenue Service to prepare must be certified by the Internal Revenue Service to prepare personal income tax for the United States military. personal income tax for the United States military.

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.

Where to file PAPER returns – new mailing addressWhere to file PAPER returns – new mailing address If enclosing a payment (check or money order), mail your If enclosing a payment (check or money order), mail your

return to:return to:

• STATE PROCESSING CENTERSTATE PROCESSING CENTER

• PO BOX 15555PO BOX 15555

• ALBANY NY 12212-5555ALBANY NY 12212-5555

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 61000

• ALBANY NY 12261-0001ALBANY NY 12261-0001

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

Filing a NYS personal Income Tax Return Filing a NYS personal Income Tax Return

2009 NYS Filing Requirements2009 NYS Filing Requirements

You must file a New York State Return if you are You must file a New York State Return if you are required to file a federal returnrequired to file a federal return

You did not have to file a federal return but if you had, You did not have to file a federal return but if you had, your federal adjusted gross income plus NYS additions your federal adjusted gross income plus NYS additions would have been $4000 or more ($3000 or more if you would have been $4000 or more ($3000 or more if you can be claimed on another’s person federal tax return)can be claimed on another’s person federal tax return)

You want to claim a refund (or a credit)You want to claim a refund (or a credit)

2009 Exemptions2009 Exemptions

Dependent exemption $1000Dependent exemption $1000

No New York State personal exemption No New York State personal exemption for the taxpayer and spouse allowed for the taxpayer and spouse allowed

2009 Standard Deduction2009 Standard Deduction

Singlecan be claimed on another's tax return

Singlecannot be claimed on another's tax return

Married Filing Jointly

Married Filing Separately

Head of Householdwith qualifying person

Qualifying Widow(er)with dependent child

Filing StatusFiling Status

$3,000

$7,500

$15,000

$10,500

$15,000

$7,500

Standard DeductionStandard Deduction

Addition Adjustments to federal Income Addition Adjustments to federal Income

Public Employee 414(h) retirement contributionsPublic Employee 414(h) retirement contributions

NYC flexible benefit program (IRC125)NYC flexible benefit program (IRC125)

Interest on state and local bonds other than from Interest on state and local bonds other than from New York StateNew York State

New York’s 529 College Savings programNew York’s 529 College Savings program

• Transfer to another state’s programTransfer to another state’s program

• Non qualified distributions Non qualified distributions

Subtraction Adjustment to Federal IncomeSubtraction Adjustment to Federal Income

Income tax refund included in federal income Income tax refund included in federal income

Interest on US Government BondsInterest on US Government Bonds

New York’s 529 College Savings ProgramNew York’s 529 College Savings Program

Pensions of New York State and Local Governments and Pensions of New York State and Local Governments and the Federal Governmentthe Federal Government

Pension exclusions (reached age 59 & ½)Pension exclusions (reached age 59 & ½)

Social Security Income included in federal incomeSocial 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)

IT-272 – Claim For College Tuition CreditIT-272 – Claim For College Tuition Credit For Qualified college tuition expenses which includes ONLY tuition For Qualified college tuition expenses which includes ONLY tuition required for required for

the enrollment or attendance of the eligible student at an institution of higher the enrollment or attendance of the eligible student at an institution of higher education. education.

• Up to 10,000 per eligible student for undergraduate tuition expenses Up 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 $200.00 or the For tuition expense under $5000, the credit is the lesser of $200.00 or the Tuition expense. 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 The eligible student does not need to be enrolled in a degree program or to attend full time for the expenses to qualify. attend full time for the expenses to qualify.

If you claim the student as a dependent, these payments are treated as paid by If you claim the student as a dependent, these payments are treated as paid by youyou..

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 taxpayer’s allowed Federal child tax credit.

• If the child is claimed on someone else’s return you are not eligible for the Empire State Child Tax Credit

IT-216 IT-216 Child Care & Dependent Credit Child Care & Dependent Credit

The New York State child and dependent are credit is a The New York State child and dependent are credit is a minimum of 20% and as much as 110% of the federal credit, minimum of 20% and as much as 110% of the federal credit, depending on the amount of your NY adjusted gross income.depending on the amount of your NY adjusted gross income.

If you qualify to claim the federal child and dependent care If you qualify to claim the federal child and dependent care credit, you can claim the New York State credit (whether you credit, you can claim the New York State credit (whether you actually claim the federal credit or not).actually claim the federal credit or not).

NYS Child Care and Dependent Credit is fully refundableNYS Child Care and Dependent Credit is fully refundable..

IT-215 – Earned Income Tax CreditIT-215 – Earned Income Tax Credit

• You must claim the federal earned income credit for tax year 2009

• 30% of the Federal Credit (additional 5% for 30% of the Federal Credit (additional 5% for NYC residents) 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.

IT -209 Noncustodial Parent Earned Income Credit IT -209 Noncustodial Parent Earned Income Credit

You may claim the noncustodial EIC only if you meet all of the You may claim the noncustodial EIC only if you meet all of the following conditions for tax year 2009: following conditions for tax year 2009:

• You must be a full-year New York State resident and at least 18 You must be a full-year New York State resident and at least 18 years of age,years of age,

• Must be a parent of a minor child(ren) with whom you do not Must be a parent of a minor child(ren) with whom you do not reside,reside,

• Must have an order in effect for at least one-half of the tax year 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 requiring you to make child support payments payable through a Support Collection Unit (SCU) pursuant to Social Services Law Support Collection Unit (SCU) pursuant to Social Services Law section 111(h), section 111(h), and have paid an amount in child support in and have paid an amount in child support in 2009 at least equal 2009 at least equal to the amount of current child support you to the amount of current child support you were required to pay by all court orders.were required to pay by all court orders.

IT -209 Noncustodial Parent Earned Income CreditIT -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 20% of the federal EIC that would have been allowed if the noncustodial child met the definition of having one qualifying child, noncustodial child met the definition of having one qualifying child, OROR

• 2.5 times the federal EIC that would have been allowed if you had 2.5 times the federal EIC that would have been allowed if you had satisfied the eligibility requirements, computed as if you had no satisfied the eligibility requirements, computed as if you had no qualifying children.qualifying children.

If the amount of the credit is greater than your tax liability, the excess If the amount of the credit is greater than your tax liability, the excess may be refunded without interest.may be refunded without interest.

If the credit is denied the taxpayer may request a review by calling the If the credit is denied the taxpayer may request a review by calling the Child Support Helpline (CSH) at 1 888 208 4485. The CSH will send Child Support Helpline (CSH) at 1 888 208 4485. The CSH will send you a form to complete and return to the appropriate SCU for the you a form to complete and return to the appropriate SCU for the review. review.

IT-245 - Claim For Volunteer Firefighter andIT-245 - Claim For Volunteer Firefighter and Ambulance Worker Credit Ambulance Worker Credit

A $200 refundable credit or $400 if married filing joint and A $200 refundable credit or $400 if married filing joint and both spouses qualify both spouses qualify

• Full year residentFull year resident

• Active volunteer firefighters or ambulance workers for the Active volunteer firefighters or ambulance workers for the entire year for which the credit is claimedentire year for which the credit is claimed

• Must use IT-201-ATT therefore filing IT-201 use code 354Must use IT-201-ATT therefore filing IT-201 use code 354 on Form IT-201-ATT, line 12.on Form IT-201-ATT, line 12.

NOTE –You cannot claim the volunteer firefighters’ and NOTE –You cannot claim the volunteer firefighters’ and ambulance workers’ credit if you receive a real property tax ambulance workers’ credit if you receive a real property tax exemption that relates to your volunteer service under Real exemption that relates to your volunteer service under Real Property Tax Law (RPTL), Article 4, Title 2.Property Tax Law (RPTL), Article 4, Title 2.

IT-258 Refundable Nursing Home Credit

• Available for amount of assessment imposed on a residential Available for amount of assessment imposed on a residential health care facility pursuant to Public Health Law section health care facility pursuant to Public Health Law section 2807-d(2)(b).2807-d(2)(b).

• The assessment must be separately stated and must be paid The assessment must be separately stated and must be paid directly by the individual taxpayer claiming the credit.directly by the individual taxpayer claiming the credit.

• Credit equals the assessment amount (not expenses) Credit equals the assessment amount (not expenses) separately stated & accounted for on the billing statementseparately stated & accounted for on the billing statement

Enter the amount and code Enter the amount and code 258 on Form IT-201-ATT, line 12, or 258 on Form IT-201-ATT, line 12, or Form IT-203-ATT, line 12.Form IT-203-ATT, line 12.

IT-214 Claim for Real Property Tax Credits for Renters and IT-214 Claim for Real Property Tax Credits for Renters and Home Owners -2009Home Owners -2009

NO CHANGES FOR 2009NO 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 rentMUST have paid real property taxes or rent

MARKET VALUE OF HOME less than $85,000MARKET 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

IT-214 definitions

Members of household - Members of household - all who share your residence and its all who share your residence and its furnishings, facilities, and accommodations whether they are furnishings, facilities, and accommodations whether they are related to you or not. related to you or not.

Household gross incomeHousehold gross income - income from all sources that you - income from all sources that you and members of your household receive. It does not include and members of your household receive. It does not include food stamps, medicare, medicaid, scholarships, grants, surplus food stamps, medicare, medicaid, scholarships, grants, surplus food or other relief food or other relief

Adjusted rentAdjusted rent – the rent paid after subtracting any charges for – the rent paid after subtracting any charges for heat, gas, electricity, furnishings, or board. Do not include any heat, gas, electricity, furnishings, or board. Do not include any subsidized part of your rental charges in adjusted rent.subsidized part of your rental charges in adjusted rent.

Property taxes paidProperty taxes paid - - In computing the amount of school district property taxes paid, include only the amount of school district property taxes paid.

IT-249 – Long-term Care Insurance Credit

• The long-term care insurance credit is equal to 20% of the premiums 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 you paid during the tax year for the purchase of, or for continuing coverage under a qualifying long-term care insurance policy. coverage under a qualifying long-term care insurance policy.

• Any unused credit may be carried over to future tax years. The Any unused credit may be carried over to future tax years. The Credit is nonrefundable.Credit is nonrefundable.

• A A qualifying long-term care insurance policy is one that qualifying long-term care insurance policy is one that is approved is approved by the New York State Superintendent of Insurance under Insurance by the New York State Superintendent of Insurance under Insurance Law section 1117(g); Law section 1117(g); and and is a qualified long-term care insurance is a qualified long-term care insurance contract under Internal Revenue Code (IRC) section 7702B.contract under Internal Revenue Code (IRC) section 7702B.

Resident tax credit – IT-112R Resident tax credit – IT-112R

If you are a full-year or part-year resident of New York State 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, and if any part of your income was taxed by another state, local government, or the District of Columbia, you may local government, or the District of Columbia, you may claim a credit against your New York State tax. claim a credit against your New York State tax.

This credit is allowable only for the portion of the tax that This credit is allowable only for the portion of the tax that applies to income received in the other taxing authority applies to income received in the other taxing authority while you were a New York State resident.while you were a New York State resident.

IT-241 -Claim for Clean Heating Fuel CreditIT-241 -Claim for Clean Heating Fuel Credit

The clean heating fuel credit has been reinstated to include The clean heating fuel credit has been reinstated to include purchases of bioheat on or after January 1, 2008, and purchases of bioheat on or after January 1, 2008, and before January 1, 2012. before January 1, 2012.

The credit of .01 per gallon for each percent of biodiesel The credit of .01 per gallon for each percent of biodiesel included in the bioheat, not to exceed $.20 per gallon. The included in the bioheat, not to exceed $.20 per gallon. The bioheat must be used for space heating or hot water bioheat must be used for space heating or hot water production for residential purposes within New York State.production for residential purposes within New York State.

Amended Income Tax ReturnsAmended Income Tax Returns

IT-201X, IT-150X, and IT-203XIT-201X, IT-150X, and IT-203X Amended returns must be completed as if you were filing an Amended returns must be completed as if you were filing an

original return.original return.

Attach to the IT-150-X, IT-201-X or IT-203-X amended Attach to the IT-150-X, IT-201-X or IT-203-X amended return any: return any:

• amendedamended credit claim or other form that you attached to your credit claim or other form that you attached to your original return (do not attach original version) original return (do not attach original version)

• newnew credit form or any other form that you are filing for the credit form or any other form that you are filing for the first time with your amended return first time with your amended return

• copy of anycopy of any tax form, credit form, IT-2 or related withholding tax form, credit form, IT-2 or related withholding form, or other form that you attached to your original return form, or other form that you attached to your original return and are not amending and are not amending

New York State and Local Sales TaxNew York State and Local Sales TaxLine 35 on IT150 or line 59 on IT-201Line 35 on IT150 or line 59 on IT-201

NYS Sales Tax is owed if you purchase property NYS Sales Tax is owed if you purchase property or a service delivered to YOU in New York State or a service delivered to YOU in New York State without payment of sales and use tax; such without payment of sales and use tax; such purchases through the internet, by catalog, or purchases through the internet, by catalog, or from television shopping channels from television shopping channels

most tangible personal property is subject to taxmost tangible personal property is subject to tax

• clothingclothing• jewelryjewelry• electronic equipmentelectronic equipment• furniturefurniture

• prewritten software• books (excluding text books)• compact disk• videos, etc..

www.nystax.govwww.nystax.gov

Volunteer E-filingVolunteer E-filing

I am a volunteer return preparer. Am I subject to the I am a volunteer return preparer. Am I subject to the mandate?mandate?

• No. Volunteers who are not compensated for preparing No. Volunteers who are not compensated for preparing returns are not tax return preparers within the meaning of returns are not tax return preparers within the meaning of the law.the law.

I am a volunteer, must a register under the new tax I am a volunteer, must a register under the new tax preparer registration program? preparer registration program?

•   No. Volunteers who are not compensated for preparing No. Volunteers who are not compensated for preparing returns are not tax return preparers within the meaning of returns are not tax return preparers within the meaning of the law.the law.

Acknowledgements

On a Fed/State filing, if the Federal tax return is rejected, the On a Fed/State filing, if the Federal tax return is rejected, the state return is rejected, too.state return is rejected, too.

Once we receive a return, we will accept or reject the return Once we receive a return, we will accept or reject the return and issue an acknowledgement.and issue an acknowledgement.

The New York acknowledgement is generally issued 24-48 The New York acknowledgement is generally issued 24-48 hours after the return is e-filed. hours after the return is e-filed.

The NYS Help Desk number for E-filing is (800) 353-1096 The NYS Help Desk number for E-filing is (800) 353-1096

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.

Tax Credits automatically calculated on New York State Tax Credits automatically calculated on New York State software when calculated on IRS return software when calculated on IRS return

Household CreditHousehold Credit

IT-213 - Empire Child Tax Credit – From federal IT-213 - Empire Child Tax Credit – From federal child tax credit child tax credit

IT-215 – Earned income tax credit – From federal IT-215 – Earned income tax credit – From federal earned income tax credit earned income tax credit

IT-216 – Child care and Dependent Credit – From IT-216 – Child care and Dependent Credit – From federal 2441 federal 2441

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-2IF NYC IRC 125 must be entered on box 14 of the W-2

Other Addition modifications must be included on proper Other Addition modifications must be included on proper addition lines of the IT-201 addition lines of the IT-201

Subtraction adjustments on NYS return Subtraction adjustments on NYS return

Must be entered on appropriate line of NYS returnMust be entered on appropriate line of NYS return

Income tax refund is automatically subtractedIncome tax refund is automatically subtracted

Social security income is automatically subtractedSocial security income is automatically subtracted

Pensions - Must indicated on 1099 if the pensions is from Pensions - Must indicated on 1099 if the pensions is from NYS and local government of if private pension entitled to NYS and local government of if private pension entitled to exclusion if taxpayer reaches age 59 & ½. exclusion if taxpayer reaches age 59 & ½.

PRIVATEPRIVATE - - If a taxpayer is 59 ½ or older, he or she can subtract up to $20,000 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 from the qualifying pension and annuity income from his or her federal adjusted gross income (1099R) adjusted gross income (1099R)

To enter the amount on line 29 of the IT-201 page 2 (or line 18,page 1, on 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, the IT-150), enter the amount in the 1099R, and put an “x” in box 1 which is and put an “x” in box 1 which is located left to box 13/local taxes.located left to box 13/local taxes.

PUBLICPUBLIC - Pensions of New York State, local government and the federal - Pensions of New York State, local government and the federal government (form 1099R)government (form 1099R)

The entire pension is excluded & entered on line 26, page 2 onIT-201(or line The entire pension is excluded & entered on line 26, page 2 onIT-201(or line 16,page 1 on the IT-150). 16,page 1 on the IT-150). To enter the amount on line 26 of the IT-201 To enter the amount on line 26 of the IT-201 page 2, enter the amount in the 1099Rpage 2, enter the amount in the 1099R, and put an “x” in, and put an “x” inbox 2 which is located left to box 13/local taxesbox 2 which is located left to box 13/local taxes

Pension subtraction on Tax WisePension subtraction on Tax Wise

What determines if an amount that an individual receives as What determines if an amount that an individual receives as a pension or annuity qualifies for the $20,000 pension and a pension or annuity qualifies for the $20,000 pension and annuity exclusion on the NYS personal Income tax return? annuity exclusion on the NYS personal Income tax return?

The pension and annuity income must be included in federal The pension and annuity income must be included in federal AGI. The pension and annuity income must be received in AGI. The pension and annuity income must be received in periodic payments (except IRA or Keogh). The pension and periodic payments (except IRA or Keogh). The pension and annuity income must be attributable to personal services annuity income must be attributable to personal services performed by such individual, prior to such individual’s performed by such individual, prior to such individual’s retirement from employment. Such individual receiving the retirement from employment. Such individual receiving the pension must be 59 ½ of age or over.pension must be 59 ½ of age or over.

Private Pension Subtraction

Advisory decisionsAdvisory decisions

TSBA -09 (09)I and 09(10)I - Whether distributions from an TSBA -09 (09)I and 09(10)I - Whether distributions from an IRA that was funded with assets rolled over from a IRC IRA that was funded with assets rolled over from a IRC §403(b) tax-deferred annuity plan are subject to New York §403(b) tax-deferred annuity plan are subject to New York State personal income tax.State personal income tax.

TSB-A-09 (07) I - Whether distributions from an Individual TSB-A-09 (07) I - Whether distributions from an Individual Retirement Account (IRA) are subject to personal income Retirement Account (IRA) are subject to personal income tax if the taxpayer rolls over a Federal Reserve Bank of tax if the taxpayer rolls over a Federal Reserve Bank of New York 401K Thrift Plan to the IRA.New York 401K Thrift Plan to the IRA.

    

E-file Signature RequirementsE-file Signature Requirements There is no need to mail Forms W-2 or other supporting There is no need to mail Forms W-2 or other supporting

documents to the Tax Department.documents to the Tax Department.

Volunteers are required to have the taxpayer sign the TR-579-IT 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 for each return that is e-filed. The TR-579-IT should be retained by the volunteer with the IRS (federal) signature document. by the volunteer with the IRS (federal) signature document.

Volunteers should:Volunteers should:

• enter their SITE ID number where requesting Federal ID number enter their SITE ID number where requesting Federal ID number or SS 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 “Preparer’s NYTPRIN”. This is for paid preparers Ignore the line “Preparer’s NYTPRIN”. This is for paid preparers that are required to register.that are required to register.

E-filing a personal income tax return 2009E-filing a personal income tax return 2009

The NYS forms IT-2, IT-1099-R and IT-1099-UI are for paper The NYS forms IT-2, IT-1099-R and IT-1099-UI are for paper filing onlyfiling only; if software is used to prepare the return and the ; if software is used to prepare the return and the return is NOT E-filed, print IT-2 for all W-2’s. return is NOT E-filed, print IT-2 for all W-2’s.

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 insurancePrint IT-1099 UI if withholding on unemployment insurance

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

Direct Deposit for Tax RefundsDirect 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 If a computational error results in a balance due on the return, we won’t use the account information provided for a return, we won’t use the account information provided for a direct deposit to debit the taxpayers account. direct deposit to debit the taxpayers account.

We will reject returns if we determine that the account We will reject returns if we determine that the account information is incorrect.information is incorrect.

NYS will not support split refundsNYS will not support split refunds

Extensions

Form IT-370,will extend the due date for 6 monthsForm IT-370,will extend the due date for 6 months

You may e-file extensions using your e-file software You may e-file extensions using your e-file software or directly on our website. or directly on our website.

You can file Form IT-370 on-line on @ You can file Form IT-370 on-line on @ www.nystax.gov. Payment options for our on-line www.nystax.gov. Payment options for our on-line extension include ACH debit, credit card and extension include ACH debit, credit card and checks. checks.

No signature requirement if no tax due.No signature requirement if no tax due.

Estimated taxes Estimated taxes

If you are self-employed, if you receive a pension or annuity, or if you 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 receive any other income from which taxes are not withheld, you may be required to make estimated income tax payments. be required to make estimated income tax payments.

You are not required to fill estimated taxes if you expect to owe less 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 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 income tax after deducting tax withheld and credits that you are entitled to claim. entitled to claim.

Payment - April 15, June 15, Sept 15 and Jan 15Payment - April 15, June 15, Sept 15 and Jan 15

NYS does not provide statement of accounts and does not provide NYS does not provide statement of accounts and does not provide vouchers (IT-2105V). vouchers (IT-2105V).

The easiest and fastest way for individuals to make estimated tax The easiest and fastest way for individuals to make estimated tax payments is through our Online tax Center. Individuals can also view payments is through our Online tax Center. Individuals can also view and reconcile their estimated tax payments electronicallyand reconcile their estimated tax payments electronically..

The place for all The place for all electronic serviceselectronic services

www.nystax.govwww.nystax.gov

Due date of the Income tax returnDue 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 http://www.tax.state.ny.us/elf/free_efile_info.htm 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!

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-M’s, forms, instructions, publications ,tax laws, and amendments.

Thank You