New York State Tax Law

State Income Taxes & NBA Free Agency

After the Cleveland Cavaliers won their first NBA championship back in June, interest in the NBA hardly waned. Soon after the LeBron James and company hoisted the championship trophy in Oakland, the NBA free agency began and a multitude of players changed teams including Kevin Durant, Dwayne Wade, Joakim Noah and Brandon Jennings (the latter two to our hometown Knicks). For NBA players it seemingly is just another contract and another (out-of-this-world) payday. Well, it is of course but there’s more to it than this.

Can New York State Audit My Federal Tax Return?

Can the state of New York audit a federal tax return? Well, there’s nothing to prevent it from doing so. Often, a New York taxpayer may claim a state tax refund based upon the result of some calculation on the taxpayer’s federal tax return. Then, a New York state auditor questions the result and decides to inquire further by auditing the taxpayer’s state and federal return. At the Thorgood Law Firm, we’ve been seeing such audits occur much more frequently in the last few years.

Extending Time To File A New York State Income Tax Return

It’s no surprise that not every taxpayer timely prepares and files their taxes in any given year. Whether there are no funds available to pay the tax bill or there is simply insufficient time to prepare the return, a variety of reasons exist for this failure. However, a little information and foresight may alleviate the stress caused by the realization that a tax return will be untimely filed. The tax professonals at the Thorgood Law Firm can help any New York taxpayer deal with any looming tax deadline.

U.S Supreme Court Denies Certiorari In Sprint Nextel Corp. v. New York, U.S.

In Sprint Nextel Corp. v. New York, U.S., No. 15-1041, cert. denied May 31, 2016,  the U.S. Supreme Court denied Sprint’s petition for review of a closely watched tax case from New York. Sprint petitioned the SCOTUS for certiorari in February, asking it to overturn the New York decision that allowed the state to proceed with a False Claims Act case against the company for its failure to collect and pay sales taxes on flat-rate calling plans.

Some Things To Know About New York State Tax

It’s not news that most people complain about having to pay taxes. New Yorkers seem to especially complain about their state and local tax burden. The Tax Foundation, with a database that currently covers the years 1977-2012, interprets the tax burden of individual taxpayers by measuring what they actually spend in local and state taxes. Its. According to its rankings of states with the highest state and local tax burdens, Americans paid an average rate of 9.9 percent in state and local taxes in 2012. Further, the state with the highest state-local tax burden was New York at 12.7 %. In fact, the top three states – New York, New Jersey and Connecticut – have been ranked as the top three in this category since 2005. Not surprisingly, New York’s tax laws are relatively complex compared to other U.S. states. Here are some things to know about taxes in the Empire State.

What You Need to Know About Deducting State and Local Taxes

Taxpayers that itemize deductions on Schedule A, (and file Form 1040) can deduct the cost of state income taxes on their federal tax return. The ability to deduct the full cost of these taxes  has its obvious advantages. Taxpayers may either claim such a deduction from state and local income taxes or state and local sales taxes, but not both. Basically, to be deductible, the tax must be imposed on a taxpayer and must have been paid during the particular tax year. Taxpayers that elect to deduct state and local general sales taxes, may use either their actual expenses or the optional sales tax tables.

Can I Discharge Taxes In Bankruptcy?

Can I Discharge Taxes In Bankruptcy?The ultimate purpose in filing bankruptcy is to obtain a discharge of most, if not all, of your debts. A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts, i.e., the debtor is no longer legally required to pay those debts that are discharged. The discharge is a permanent order which prohibits the creditors from engaging in any and all forms of collection activity on such debts.

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