What's happening
This bill amends the tax law to base New York itemized deductions on federal deductions as defined in the 2017 tax year.
Why it matters
Restores pre-2018 federal deduction rules for New York tax purposes. By tying New York's itemized deductions to the federal rules as they existed in tax year 2017, the bill effectively ignores the changes made by the 2017 federal tax overhaul (Tax Cuts and Jobs Act), such as the cap on state and local tax (SALT) deductions.
Potentially increases allowable deductions for NY taxpayers. Taxpayers who would have lost significant deductions under the newer federal rules may benefit by being able to claim higher itemized deductions on their state taxes, potentially lowering their overall New York tax liability.
Creates a divergence between federal and state tax calculations. This change means taxpayers will need to calculate their deductions differently for federal and New York state returns, adding complexity and possibly requiring more tax preparation effort or professional assistance.
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Who cares
Headline styles
Update Itemized Tax Deductions
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7524
IN SENATE
January 19, 2018
Introduced by Sen. DeFRANCISCO -- 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 New York itemized deductions of a resident individual
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (a) of section 615 of the tax law, as amended by section 1 of part HH of chapter 57 of the laws of 2010, is amended to read as follows:
(a) General. If federal taxable income of a resident individual is determined by itemizing deductions from his federal adjusted gross income, he may elect to deduct his New York itemized deduction in lieu of his New York standard deduction. The New York itemized deduction of a resident individual means the total amount of his deductions from federal adjusted gross income, other than federal deductions for personal exemptions, as provided in the laws of the United States for the taxable year two thousand seventeen, with the modifications specified in this section, except as provided for under subsections (f) and (g) of this section.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14291-01-8
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 New York itemized deductions of a resident individual
Purpose
This bill would amend the law relating to New York itemized deductions of a resident individual.
Summary of provisions
Section 1 - Amends Subsection (a) of section 616 of the tax law, as amended by section 1 of part HH of chapter 57 of the laws of 2010.
Section 2 - Effective date
Justification
This bill will amend existing state tax law to ensure that taxpayers who are impacted by the recently adopted federal cap on itemized deductions would still be able to itemize those deductions on their State Income Tax Returns.
Legislative history
New bill
Fiscal implications
None
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.