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Summary of 2009 New York State Tax Updates for Volunteer Tax Preparers

Summary of 2009 New York State Tax Updates for Volunteer Tax Preparers. www.nystax.gov. NYS Tax Contact Information. Tax Practitioners Hot Line: 1 (888) 238-0955 Forms Control Unit phone number: (518) 244-1911 TP-3 Forms Order (Can order TP-300) E-file Helpdesk line: 1-800-353-1096

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Summary of 2009 New York State Tax Updates for Volunteer Tax Preparers

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  1. Summary of 2009 New York State Tax Updates for Volunteer Tax Preparers www.nystax.gov

  2. NYS Tax Contact Information • Tax Practitioners Hot Line: 1 (888) 238-0955 • Forms Control Unit phone number: (518) 244-1911 • TP-3 Forms Order (Can order TP-300) • E-file Helpdesk line: 1-800-353-1096 • Request for training 518- 457-2398 • www.nystax.gov

  3. Resources Available for Volunteers • TP -300 Quick Reference Guide • Publication 80 – General Information for NYS residents • Publication 22 - FAQS: NYS Real Property Tax Credit For Homeowners and Renters • Publication 310NY – NYS Earned Income Tax Credit • Publication 10-W -FAQs: New York State College Tuition Credit and Itemized Deduction • Publication 94 – Should I be Paying Estimated taxes • Publication 99IND-NYS/NYC Income tax credits for Individuals

  4. Private and Confidential • In accordance with Internal Revenue Service Taxpayers utilizing volunteer program services provide personal information to the volunteers, such as names, addresses, social security numbers, birth dates, and bank account information. • Therefore, partners and volunteers must keep the information confidential and protect it from unauthorized individuals and misuse.

  5. 2009 NYS Filing Requirements • You must file a New York State Return if you file a federal return • You did not have to file a federal return but if you had, your federal adjusted gross income plus NYS additions would have been $4000 or more ($3000 or more if you can be claimed on another’s person federal tax return) • You want to claim a refund (or a credit)

  6. 2009 Exemptions • Dependent exemption $1000 • No New York State personal exemption for the taxpayer and spouse allowed

  7. Filing Status Standard Deduction Single can be claimed on another's tax return $3,000 Single cannot be claimed on another's tax return $7,500 Married Filing Jointly $15,000 Married Filing Separately $7,500 Head of Household with qualifying person $10,500 Qualifying Widow(er) with dependent child $15,000 2009 Standard Deduction

  8. Credits available only to full year residents • College Tuition Credit • Empire State Child Tax Credit • Non-Custodial Parent EITC • Real Property Tax Credit • Volunteer Fireman Credit

  9. What is new for 2009?

  10. New York Higher Education Loan Program (NYHELP) • NYHELP will be administered by the New York State Higher Education Service Corporation (HESC). • Interest paid on NYHELPs student loans are deductible for purposes of any income or franchise tax imposed by the State or its political subdivisions.

  11. Bad Check Fee • A $50 fee is imposed when a check, money order, or electronic funds withdrawal is returned. • Effective for all authorized tax documents required to be filed for tax years beginning on or after January 1, 2009.

  12. Middle Class STAR Rebate Elimination • Middle Class STAR rebates that were scheduled to be issued by the Tax Department in the fall of 2009 and each year thereafter are eliminated. • Provision does not affect property owners’ Basic or Enhanced STAR exemption. • For NYC residents, the school tax credit is reduced: • Married couples from 310 to $125 • All other filing statuses from $155 to $62.50

  13. Additional Consumer Protection & Disclosure for Refund Anticipation Loans (RALs) • Requires the registration of certain paid return preparers and RAL facilitators (VITA and TCE exempt). • Directs Department to coordinate consumer tax preparer complaints with the State Consumer Protection Board. • Requires the Department to create a Task Force to examine the additional oversight of tax return preparers.

  14. Additional Consumer Protection & Disclosure for Refund Anticipation Loans (RALs) • Restrictions regarding RACs and RALs: • charges or fees apart from the fee charged by the creditor or bank that provides the loan or check; • engaging in unfair or deceptive practices; • directly or indirectly arranging for a third party to charge any interest, fee, or charge; and • making a misrepresentation of fact in obtaining or attempting to obtain a registration.

  15. Additional Consumer Protection & Disclosure for Refund Anticipation Loans (RALs) • Chapter 432 of the laws of 2008 added Article 24-C to the General Business Law. The law is intended to increase consumer protection in the paid income tax preparer industry. • Effective January 1, 2009 with three main provisions: • Requirement to provide contact information • Requirement to distribute Publication 135, Consumer Bill of Rights Regarding Tax Preparers • Requirements regarding refund anticipation loans disclosure

  16. Voluntary Disclosure and Compliance Program (VDCP) Technical Amendment • Allows for the disclosure of return information to the Internal Revenue Service and other taxing authorities.

  17. Online Tax Center • First time individuals can create an individual account with the online tax center with no prior department profile listed.

  18. Metropolitan Commuter Transportation Mobility Tax (MCTMT) • The MCTMT is a new tax imposed on certain employers and self-employed individuals engaging in business within the Metropolitan Commuter Transportation District (MCTD). This department administers the tax for the Metropolitan Transportation Authority. • The MCTD includes New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island) , Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester counties. • TSB-M-09(1)MCTMT - Metropolitan Commuter Transportation Mobility Tax and Correction TSB-M issued TSB-M-09(1.1)MCTMT • For MCTMT questions (518) 485-2392 or 1 866 579-2498

  19. MCTMT • The MCTMT tax applies to: • Employers required to withhold New York State income tax from employee wages and whose payroll expense exceeds $2,500 in any calendar quarter • Individuals with net earnings from self-employment allocated to the MCTD that exceed $10,000 for the tax year. (This includes partners in partnerships and members of an LLC treated as a partnership.) • Tax rate • Employers:  .34% of an employer’s payroll expense for employees employed within the MCTD  • Individuals:  .34% of net earnings from self-employment allocated to the MCTD during the tax year

  20. MCTMT • Initial payment for 2009 • Employers (other than employers required to file through the Promptax program) Due date: November 2, 2009. Initial payment period: March 1, 2009 - September 30, 2009. Public schools have a different initial payment period: September 1, 2009 - September 30, 2009. • Employers who are required withholding tax Promptax filers (other than public school districts) Due date: Same date their 1st withholding tax Promptax payment is due on or after October 31, 2009. Initial payment period: March 1, 2009 through and including the payroll date for which the Promptax payment was made. • Individuals  Due date: November 2, 2009 • * The due date moves to November 2 because October 31, 2009 falls on a Saturday.

  21. MCTMT • Annual MCTMT reconciliation: • An individual with net earnings from self-employment must file a reconciliation return to Reconcile his or her MCTMT estimated tax payments. • MCTMT reconciliation return is due on or before the 30th day of the fourth month following the close of the tax year. • The reconciliation return will include the amount of MCTMT due and the amount paid during the year.

  22. MCTMT • Self-employed estimated MCTMT Payments • The estimated tax rules that apply for purposes of NYS personal income tax apply to the MCTMT. However, there is no exception from estimated MCTMT payments for taxpayers who expect to owe less than $300 of MCTMT for the tax year. • The estimated MCTMT payments are due on April 30, July 31, and October 31 of the current year, and January 31 of the following calendar year.

  23. Thank-you The material included in this slide show is intended only to highlight the program as of the date presented. For more comprehensive information, please refer to our TSB-M’s, forms, instructions, publications ,tax laws, and amendments

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