What's happening
This bill allows New York residents to claim tax benefits for financially supporting dependent children living outside the United States.
Why it matters
Expands tax benefits to immigrant and transnational families. By allowing New York residents to claim head-of-household status and exemptions for children living abroad, the bill recognizes and supports families who financially care for children outside the U.S.—a common reality for many immigrant households.
Requires proof of relationship and financial support. The bill mandates documentation showing both the legal relationship to the dependent child and the amount of financial support provided, adding accountability and preventing abuse while potentially increasing paperwork for claimants.
Imposes penalties for fraudulent claims. Any taxpayer submitting false or fraudulent documentation to claim these benefits would face significant penalties, aiming to safeguard the tax system from misuse.
May impact state revenue and tax compliance. By broadening eligibility for certain deductions and exemptions, this bill could reduce state tax revenues but also encourage more accurate reporting and inclusion among populations previously unable to claim these benefits.
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Who cares
Headline styles
Tax Credit for Foreign Children
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2703
2017-2018 Regular Sessions
IN SENATE
January 17, 2017
Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to establishing the New York state foreign dependent children tax inclusion act
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known and may be cited as the "New York state foreign dependent children tax inclusion act".
§ 2. Subsection (c) of section 614 of the tax law, as amended by chapter 170 of the laws of 1994, is amended to read as follows:
(c) Head of household. (1) For taxable years beginning after nineteen hundred ninety-six, the New York standard deduction of an individual who is a head of household shall be ten thousand five hundred dollars; for taxable years beginning in nineteen hundred ninety-six, such standard deduction shall be ten thousand dollars; for taxable years beginning in nineteen hundred ninety-five, such standard deduction shall be eight thousand one hundred fifty dollars; and for taxable years beginning after nineteen hundred eighty-nine and before nineteen hundred ninetyfive, such standard deduction shall be seven thousand dollars.
(2) (A) For taxable years beginning after two thousand eighteen, an individual providing support to a dependent child or children residing outside of the United States shall be deemed head of household for purposes of this subsection where the individual provides proof of:
(i) the legal relationship between the individual and his or her dependent child or children; and
(ii) the amount of money which the dependent child or children received from the individual.
(B) Support provided to children outside of the United States means money or other financial support which is sent or transferred outside the United States to a dependent child of the individual.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07642-01-7
S. 2703 2
(C) For the purposes of this subsection, the term "dependent child" shall mean any child of the individual who is age eighteen or younger.
(D) Any taxpayer who submits a false or fraudulent document to the department regarding the proof required pursuant to this subsection shall be subject to the penalty imposed pursuant to subsection (cc) of section six hundred eighty-five of this article.
§ 3. Section 616 of the tax law is amended by adding a new subsection (c) to read as follows:
(c) Foreign dependent children. For taxable years beginning after two thousand eighteen, a resident individual shall be allowed a New York exemption of one thousand dollars for each dependent child residing outside of the United States. Such individual shall provide proof of the legal relationship between the individual and his or her dependent child or children and the amount of money the individual provides to the dependent child or children. Any taxpayer who submits a false or fraudulent document to the department regarding the proof required pursuant to this subsection shall be subject to the penalty imposed pursuant to subsection (cc) of section six hundred eighty-five of this article. For purposes of this subsection, the term "dependent child" shall mean any child of the resident individual who is age eighteen or younger who resides outside of the United States.
§ 4. This act shall take effect immediately. The commissioner of taxation and finance is authorized to promulgate any and all rules and regulations and take any other measures necessary to implement this act on its effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to establishing the New York state foreign dependent children tax inclusion act
Purpose or general idea of bill
The purpose of the bill is to allow a resident taxpayer to receive a state income tax standard deduction and tax exemption for the financial support provided to a dependent child or children residing outside of the United States.
Summary of specific provisions
Subsection (c) of section 614 of the tax law is amended by adding subdivision (2) to allow:
(2) (A) For taxable years after 2015, an individual providing financial support to a dependent child or children residing outside of the United States to be considered as a head of household for purposes of this section when the individual provides certain proof as specified in this section.
(B) Provides the definition of "support" for the purposes of this section.
(C) Provides the definition of "dependent child" for the purposes of this section.
(D) Provides the penalty imposed for any taxpayer who submits a false or fraudulent document.
(3) Section 616 of the tax law is amended by adding a new subsection to allow, for taxable years after 2015, a resident taxpayer to receive a New York tax exemption for the financial support provided to a dependent child or children residing outside of the United States.
Section 4: Establishes the effective date and gives the commissioner of taxation and finance the authorization to promulgate rules and regulation necessary to implement this act.
Justification
Currently, under the New York State Tax Law, resident taxpayers are eligible for a standard deduction and tax exemption only when their dependent children are legal residents or citizens of the United States and currently live with them for more than half of the year. Many resident taxpayers provide financial support to their children who reside outside of the United States, which is a high expense for many New Yorkers especially in these economic times. These residents are taxed based on their total annual income without taking into consideration the significant support they provide to their families in other countries. This legislation does not provide a tax credit but a small standard deduction and tax exemption that will help them save some money and receive the same benefit ether taxpayers receive just because their children reside in the united states and live with them. This bill will not allow these taxpayers to receive an Earned Income Tax Credit (EITC) for these dependent children.
Prior legislative history
2015-16: S2785A - Amend and Recommit to Investigations and Government Operations 2013-14: S3201 - Referred to Investigations and Government Operations 2011-12: S7622/10079A - Investigations & Gov't Operations FISCAL IMPLICATIONS :
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.