What's happening
This bill allows New York taxpayers to deduct up to $10,000 of federal income taxes paid from their state taxes.
Why it matters
Reduces state tax liability for many New Yorkers. by allowing them to subtract up to $10,000 in federal income taxes paid from their New York taxable income—potentially lowering the amount owed to the state and increasing refunds, especially for higher-taxed households.
Helps offset the impact of federal tax changes. (such as the SALT deduction cap introduced in 2017), which limited how much state and local taxes could be deducted on federal returns, thereby providing some relief to residents of high-tax states like New York.
May influence taxpayer behavior and filing choices. , as the deduction is structured to offer different maximum benefits depending on filing status ($5,000 for single or separate filers, $10,000 for joint filers), potentially encouraging more joint filings among married couples to maximize the deduction.
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Who cares
Headline styles
Deduct Federal Taxes Paid
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 61
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
7528
IN SENATE
January 19, 2018
Introduced by Sen. RANZENHOFER -- 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 allowing an additional New York itemized deduction for federal income taxes paid
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (d) of section 615 of the tax law is amended by adding a new paragraph 6 to read as follows:
(6) the amount, not exceeding five thousand dollars for an unmarried individual or a married individual filing a separate return, or ten thousand dollars for married individuals filing a joint return, of federal income taxes paid during the taxable year.
§ 2. This act shall take effect January 1, 2019.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14124-01-8
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 allowing an additional New York itemized deduction for federal income taxes paid
Purpose
To allow New York taxpayers to deduct from their income for New York State income taxes purposes the federal taxes paid during the taxable year.
Summary of provisions
Section 1 amends subsection (d) of section 615 of the Tax Law to add a new paragraph 6, which adds as a deduction the amount of federal income taxes paid during the taxable year, with a deduction limit of five thou- sand dollars for an unmarried individual or a married couple filing separately, and ten thousand dollars for married individuals filing a joint return.
Section 2: Effective date.
Justification
With new federal tax legislation likely to reduce income taxes for most New Yorkers in the coming years, it is time for the state to also provide additional income tax relief to our citizens.
Legislative history
New bill.
Fiscal implications
To be determined.
Effective date
This act will take effect on January 1, 2019.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.