What's happening
This bill allows New York residents to claim tax benefits for financially supporting dependent children under 18 living outside the United States.
Why it matters
Expands eligibility for New York tax benefits to include residents supporting dependent children under 18 living abroad. , which recognizes and provides financial relief for cross-border family structures common among immigrants and transnational families.
Requires documented proof of both the relationship and financial support sent overseas. , aiming to ensure only legitimate claims are approved and to reduce the risk of fraud.
Imposes penalties for submitting false or fraudulent documentation. , highlighting the seriousness of enforcement and the intent to prevent abuse of this new provision.
May encourage greater financial stability and support for children living outside the U.S. , potentially increasing remittances and helping families who are split across borders, while also acknowledging the global realities of New York’s diverse population.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Tax Credit for Foreign Kids
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
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5004
2019-2020 Regular Sessions
IN SENATE
April 3, 2019
Introduced by Sen. PARKER -- 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 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 twenty, 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.
LBD10462-01-9
S. 5004 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 twenty, 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 establish- ing 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 subdi- vision (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 regu- lation 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 resi- dent taxpayers provide financial support to their children who reside outside of the United States, which is a high expense for many New York- ers 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
2017-18: S2703 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS 2015-16: S2785A - Amend and Recommit to Investigations and Government Operations 2013-14: 53201 - 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.