Income tax deductions are expenses that may be deducted from pre-tax gross income. Of course, deductions reduce New York income tax and maximize a refund. One of the experienced tax professionals at the Thorgood Law Firm can assist any New Yorker in determining the deductions for which they qualify under New York law.
New York has a standard state income tax deduction. For 2015, they are as follows:
| Filing Status | Amount of Standard Deduction |
| Single (and can be claimed as a dependent on another taxpayer’s federal return) | $3,100 |
| Single (and cannot be claimed as a dependent on another taxpayer’s federal return) | $7,900 |
| Married filing joint return | $15,850 |
| Married filing separate return | $7,900 |
| Head of household (with qualifying person) | $11,100 |
| Qualifying widow(er) with dependent child | $15,850 |
New York also offers taxpayers the opportunity to itemize certain deductions like property tax and qualified charitable contributions, depending on the taxpayer’s level of income and filing status. So the bottom line here is that not all deductions allowed on a federal income tax return will be allowed on a New York State income tax return.
While federal tax law allows a personal exemption to be deducted from gross income, New York does not have a personal exemption. However, taxpayers may claim the same amount of the dependent exemptions allowable on their federal return. The value of a New York State dependent exemption is $1,000. Also, New York does allow limited itemized deductions, many similar to the deductions which may be claimed on a federal return.
Deductions allowed by New York law include contributions to 529 Plans. New York allows up to $5,000 ($10,000 if married filing jointly), or the actual amount contributed, whichever is the least. New York also allows either a deduction or a tax credit for college tuition in New York. Only tuition paid for the undergraduate enrollment or attendance at an institution of higher education is deductible. This includes expenses paid using a qualified state tuition program (like New York’s 529 College Savings Program). However, room and board, books, or activities, may not be deducted even if their purchase is required by the school.
If you have any questions about New York State income tax deductions, call THE TAX EXPERTS at the Thorgood Law Firm www.thorgoodlaw.com. For a FREE consultation call 212-490-0704.
