NYS Preparers

[Dave T]

A couple of early observations about New York State:

There is a new refundable credit entitled Property Tax Relief Credit which is computed on IT-229. This is in contrast to the Property Tax Credit on IT-214.  The new credit is between $250 and $350 depending on income and assuming property taxes exceed 6% of AGI.

The other item I noticed is that in 2020 you had to add back the charitable contributions on the 1040 assuming you didn't itemize. This decoupling occurred on IT-558 but when looking at the 2021 IT-558 that code is no longer there.  NYS website does not address this change.

Due to the above item, an error occurs saying Federal AGI does not equal NYS AGI.  

Any other NYS preparers notice this latter item?

Thank you

Dave T

 

 

[Lion EA]

The old charitable deduction for non-itemizers was above the line, so NY added back. The 2021 deduction is below the line, so NY doesn't need to adjust NY AGI for federal deduction, right?

(I'm in CT, so my NY commuters and especially NY residents don't come in until later. I haven't played around in the NY return in my software yet.)

[G2R]

I too haven't dug into any NY returns yet.  If I run across this myself, I'll chime in if I find anything that can help. 

[Patrick Michael]

Also new this year for NY  you must post the following items—prominently and conspicuously—at every location where you provide tax preparation or facilitation services to clients:  

a copy of your current Certificate of Registration, issued by the Tax Department

a current price list in at least fourteen-point type that includes, but is not limited to:

     a list of all your tax return preparation and facilitation services

     your minimum charge for each service, including each type of federal or New York State tax return you prepare or provide facilitation services for

     a list of the factors—and their associated fees—that may increase your stated charge

the Tax Department’s Publication 135.1, Consumer Bill of Rights Regarding Tax Preparers

[BulldogTom]

6 hours ago, Patrick Michael said:

list of the factors—and their associated fees—that may increase your stated charge

I wonder if this would fly?

PITA Fee - whatever it takes to make you go somewhere else next year

Tom
Longview, TX

[joanmcq]

It’s funny if you work completely remotely! Like the posters I had to put up for employees.  Hung them in the bathroom since it was the only room with wall space for the poster.

[Catherine]

53 minutes ago, joanmcq said:

the posters I had to put up for employees

I sent them to my employee as a pdf, because there's no wall here to hold them. It's either windows, bookcases, or file cabinets.

[Dave T]

Lion - yes the charitable contribution is now below the line as you say but the NYS program still shows the amount as an adjustment and reduces NYS AGI accordingly which causes the two amounts to differ and therefore trigger an error.

It is my understanding that ATX is aware of this and will be making the program change.

[Lion EA]

Then wait for your software to update.