What's happening
This bill allows New York taxpayers to claim an additional itemized state tax deduction for up to $10,000 in federal income taxes paid.
Why it matters
Potentially lowers state tax bills for many New Yorkers. By letting taxpayers deduct up to $10,000 of their federal income tax payments from their New York taxable income, the bill could significantly reduce the amount of state tax owed—especially for higher earners or those who pay substantial federal taxes.
Provides relief from the federal SALT cap. After federal tax reforms capped state and local tax (SALT) deductions at $10,000, many New Yorkers saw higher overall tax burdens. This bill aims to partially offset that by letting residents deduct some federal taxes on their state returns.
Could benefit married couples the most. The deduction is capped at $10,000 for married couples filing jointly, compared to $5,000 for singles or those married filing separately—potentially providing greater relief to dual-income households.
May impact state revenue and local government funding. Allowing this additional deduction could reduce New York State’s income tax collections, potentially affecting funding for public services or prompting future fiscal adjustments.
Albany, before your first meeting.
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Who cares
Headline styles
Deduct Federal Taxes Paid
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to budget and revenue
- Referred to budget and revenue
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3629
2019-2020 Regular Sessions
IN SENATE
February 11, 2019
Introduced by Sen. RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
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, 2020.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01799-01-9
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
2018 - S.7528 -- INVESTIGATIONS
Fiscal implications
To be determined.
Effective date
This act will take effect on January 1, 2020.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.