Considerations You Need To Understand
Here are some additional points you should understand before submitting an offer.
- Submitting an OIC does not automatically suspend the collection of a warrant.
- Submitting an offer does not change the time you have to respond to an assessment.
- The statutory period for collections is suspended while the offer is pending and for a year afterward.
- You must file all tax returns and pay all tax owed for five years after the offer is accepted.
- If you qualify for any refunds or credits, the state applies those amounts to your taxes owed. That applies to the calendar year that you submit the offer and to any years prior to the offer.
- You may have to provide a collateral agreement to the state. A collateral agreement is where you agree to pay more than the offer if you come into extra money. For example, if your income goes up in the next few years, you agree to pay some of that money to the state.
- If you submit an OIC for trust taxes on behalf of a business, responsible individuals part of the business may still be personally liable. Trust taxes are withholding taxes that were withheld from an employees paycheck but not paid to the state. They also include sales taxes which are held in trust by the business on behalf of the consumer and remitted to the state.
- If the tax bill is more than $100,000, a New York Supreme Court judge needs to approve the OIC.
Use Glacier Tax Prep To File Your Federal Tax Return
GTP will help you easily fulfill your tax obligations by asking you a series of questions and filling in all necessary forms for you. It will also inform you of any tax benefits that may apply to you.
1. Get access to GTP by logging in with your NYU net ID and password. GTP is available free of charge to NYU students and scholars.
You will need to create a user ID and a password with your NYU email address by first logging in with your NYU Net ID and password. Once you log into GTP follow the instructions in each step. If your NYU Net ID is not active, first visit . If you are having difficulty accessing GTP, visit our Tax FAQ for instructions.
If you were employed at NYU or received an NYU scholarship or fellowship you may have already logged into Glacier. GTP would populate the information from Glacier to expedite the process. Log in using the user ID and password you created when you first started an account on Glacier. If you have forgotten your user ID or password click on Forgot ID to reset your user ID or password.
2. Print the forms GTP generates. Review, sign and mail them no later than April 15 to the address given by GTP. We suggest mailing using “Certified Mail”. Please note, you cannot electronically file your tax forms if you are considered a non-resident for US tax purposes.
Schedule A Tax Allocation Consultation With The Attorneys At Hodgson Russ Llp
In today’s world, many taxpayers lead complex lives and may travel to multiple states as part of business, family obligations and other experiences. If you are subject to a New York State nonresident audit or have questions about residency or nonresidency issues, contact the attorneys at Hodgson Russ LLP for a consultation.
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New York Gasoline Tax
The Motor Fuel Excise Taxes on gasoline and diesel in New York are 8.05 cents per gallon and 8.00 cents per gallon, respectively. Furthermore, the Petroleum Business Tax is paid by petroleum businesses for certain types of fuel and paid at different points in the distribution chain. As of Jan. 1, 2020, the PBT is 17.4 cents per gallon.
How To File A Claim For Unemployment In New York
To qualify for Unemployment Insurance benefits, you must have worked and earned enough wages in covered employment. In New York State, employers pay contributions that fund Unemployment Insurance. You must file an Unemployment Insurance claim to find out if you are eligible and learn your actual benefit amount.
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New York State Tax Refund
If you expect a refund from your New York personal income tax return, you can check the status of the refund 14 days after you e-file. If you filed a paper income tax return, youll need to wait six to eight weeks before checking its status.
E-filing your return is the quickest way to file your income tax return. Plus, youll receive an email confirmation that your return was received and accepted by New York State.
Direct deposit is the quickest way to receive your NY state tax refund. When you register on the New York State Department of Taxation and Finance, you will receive an email notifying you when your direct deposit is sent. A paper check takes an additional week or two to process.
Filing Information For New York State Nonresidents
If you are a New York State you must file , Nonresident and Part-Year Resident Income Tax Return, if you meet any of the following conditions:
- You are a nonresident with and your New York adjusted gross income Federal amount column exceeds your .
- You want to claim a refund of any New York State, New York City, or Yonkers income taxes withheld from your pay.
- You want to claim any of the credits available.
- You had a net operating loss for New York State personal income tax purposes for the tax year, without having a similar net operating loss for federal income tax purposes.
You may have additional filing responsibilities if you have .
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More Help With Nys Income Tax
Understanding your tax obligations can be time consuming. Whats even more time-intensive is how to NYS income tax from your federal taxes as an itemized deduction.
So, get help with H& R Block Virtual! With this service, well match you with a tax pro with New York tax expertise. Then, you will upload your tax documents, and our tax pros will do the rest! We can help with your NY taxes, including federal deductions for paying state taxes.
Prefer a different way to file? No problem you can find New York state tax expertise with all of our ways to file taxes.
If your dependent died during the year, can you still claim them on your taxes? Get tax answers from H& R Block.
New York Property Tax
Property taxes are assessed exclusively by counties and cities in New York State, which means that rates vary significantly from one place to the next. Effective rates – taxes as a percentage of actual value as opposed to assessed value – run from less than 0.7% to about 3.5%.
Surprisingly, the city with the lowest effective property tax rate is New York City, where property taxes paid total an average of just 0.88% of property value. The reason for that relatively low rate is that the taxable value of most residential property in New York City is equal to just 6% of the market value. That is, if your home is worth $500,000, you will only be charged taxes on $30,000 of that amount. Outside of New York City, however, rates are generally between 2% and 3%.
Regardless of city, if you are looking to refinance or purchase a property in New York with a mortgage, check out our guide to mortgages in New York. Weve got details on average mortgage rates and other information about getting a mortgage in the Empire State. You can also use our New York property tax calculator to find out what you would pay in property taxes in New York.
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Star Check Delivery Schedule
Some homeowners receive a check for the STAR credit, rather than receiving the STAR exemption, which is a reduction on their school tax bill. The department issues STAR credit checks prior to the due date for school taxes. Use the 2021 STAR Check Delivery Schedule lookup for the most recently updated information available for your area.
When Is The Deadline To File Nyc 1127
The deadline for filing your Form NYC-1127 and paying any amount due has been extended to June 1, 2021, in response to the extensions of the Federal and New York personal income tax filing deadlines to May 17, 2021.
If you have never filed a claim for benefits in New York State, you must create a PIN. This is a four-digit number that you must keep confidential. This PIN will be used to access the system to certify for weekly benefits and update your account. Ready? Make sure you have with you: You can file a claim without all of these documents.
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Registration In Other States
If you will be doing business in states other than New York, you may need to register your LLC in some or all of those states. Whether you’re required to register will depend on the specific states involved: each state has its own rules for what constitutes doing business and whether registration is necessary. Often activities such as having a physical presence in a state, hiring employees in a state, or soliciting business in a state will be considered doing business for registration purposes. Registration usually involves obtaining a certificate of authority or similar document.
For more information on the requirements for forming and operating an LLC in New York, see Nolo’s article, 50-State Guide to Forming an LLC, and other articles on LLCs in the LLC section of the Nolo website.
If You Owe And Cant Pay
If you need more time to file your tax return, you can request a six-month extension. That said, youll still need to make a payment of your estimated tax bill when you request the extension.
If you do file on time but cant pay the full amount due, you can request an installment payment agreement through your online account on the states website. This agreement, which extends your payments for up to 36 months, is available to taxpayers with a bill of $20,000 or less.
While youre making payments, though, youll incur both penalties and interest on any unpaid balance.
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Earned Income Tax Credit
If you claim the federal earned income credit, you can get an additional credit on your New York state return equal to 30% of your federal credit, less any household credit you receive.
If you live in New York City, you might qualify for a third earned income credit worth 5% of your federal credit amount.
Child And Dependent Care Credit
If you qualify to claim the federal child and dependent care credit, you can get an additional credit through your New York state return. The amount of the credit is between 20% and 110% of the federal credit, based on your New York state adjusted gross income.
If you live in New York City, you can claim yet another child and dependent care credit worth up to 75% of your state credit. To qualify, your federal adjusted gross income must be $30,000 or less, you must have paid childcare expenses for at least one child who was younger than 4 at the end of the tax year, and you qualified for the New York state child and dependent care credit.
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Taxable And Exempt Shipping Charges In New York
New York sales tax may apply to charges for shipping, delivery, freight, handling, and postage.
Shipping and handling charges billed by the vendor to the customer are generally taxable in New York if the sale is taxable, whether the charges are combined or separately stated on the invoice. Shipping and handling charges billed by the vendor are generally exempt when the sale is exempt, whether combined or separately stated.
When a vendor charges a single charge for delivery of both taxable and nontaxable property or services, the entire charge is generally subject to tax. However, if taxable and nontaxable charges are separately stated on a bill, and the charge for delivery is separately stated and allocated between taxable and non-taxable sales, the charge to deliver the taxable goods is taxable and the charge to deliver the exempt goods is exempt.
If a customer arranges delivery by a third person and pays that person directly, the third persons delivery charge is not taxable, even if the item delivered is taxable.
There are exceptions to almost every rule with sales tax, and the same is true for shipping and handling charges. Specific questions on shipping in New York and sales tax should be taken directly to a tax professional familiar with New York tax laws.
For additional information, see the New York State Department of Taxation and Finance, Shipping and Delivery Charges.
The Impact Of Failing To Collect New York Sales Tax
If you meet the criteria for collecting sales tax and choose not to, youll be held responsible for the tax due, plus applicable penalties and interest.
Its extremely important to set up tax collection at the point of sale its near impossible to collect sales tax from customers after a transaction is complete.
Learn about sales tax automation
Introducing our Sales Tax Automation 101 series. The first installment covers the basics of sales tax automation: what it is and how it can help your business.
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S To Manually Filing A Sales Tax Return In New York
State Income Tax Brackets
Youll note that in our discussion of tax rates above that we used the term taxable income. This is different from actual income earned, because it accounts for tax deductions and exemptions. In New York, the standard deduction for a single earner is $8,000 . This means that when calculating New York taxes, you should first subtract that amount from your income .
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Deducting Nys Income Tax
If you pay NYS income tax, the IRS allows you to claim a deduction on your federal tax return for them. You can claim a state income tax deduction if you itemize deductions on your federal return.
To determine if you should itemize your deductions, add up your calendar-year deductible expenses, including your state income taxes, to see if the total is greater than the standard deduction amount for your filing status. So, if you pay more than your standard deduction in NYS income tax and other itemized deductions, then consider itemizing your taxes.
Due to the Tax Cuts and Jobs Act, state and local tax deductions, including state income taxes, are limited to $10,000 per year.
Late Sales Tax Filing Penalties And Interest
Filing a New York sales tax return late may result in a late filing penalty as well as interest on any outstanding tax due. For more information, refer to our section on penalties and interest.
In the event a New York sales tax filing deadline was missed due to circumstances beyond your control , the New York Department of Taxation and Finance may grant you an extension. However, you may be asked to provide evidence supporting your claim.
Hopefully you don’t need to worry about this section because you’re filing and remitting New York sales tax on time and without incident. However, in the real world, mistakes happen.
If you miss a sales tax filing deadline, follow the saying, “better late than never,” and file your return as soon as possible. Failure to file returns and remit collected tax on time may result in penalties and interest charges, and the longer you wait to file, the greater the penalty and the greater the interest.
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Common Rejection Reasons For A Ny Offer In Compromise
Here are some common reasons for rejections.
- The taxpayer is not insolvent or discharged in bankruptcy.
- Your application doesnt prove that paying in full would cause undue economic hardship.
- The state thinks it could collect more by taking legal action against you.
- The application includes false or misleading information.
- There is evidence that you transferred assets after learning about the tax liability.
- You didnt make a good faith effort to pay the taxes owed.
- The taxes owed is related to a crime for which the taxpayer pled or was found guilty.
- The offer undermines voluntary tax compliance.
- Accepting the offer is not in the best interests of the state of New York.
As with IRS application process, the New York State Offer in Compromise process is not easy. We highly recommended that you work with a tax firm or a licensed tax professional. Start your search below by selecting New York Department of Taxation and any other tax agencies you are having an issue with.
Disclaimer: This article is not legal or tax advice. This article should not be used as a substitute for the advice of a competent attorney or tax professional admitted or authorized to practice in your jurisdiction.