It’s tax season and with federal tax changes in effect, it’s important that Central New Yorkers know where to go for help when filing their state and federal income taxes. There’s a lot of uncertainty about how the federal Tax Cuts and Jobs Act (TCJA), which set new tax rates and placed restrictions on itemized deductions, will impact returns this year, but thankfully, there are resources available to help folks file their taxes and keep more of their hard-earned money.
An income tax refund is especially handy after the holidays, and there are several ways to ensure you’re getting the biggest refund possible. Central New Yorkers who earned $66,000 or less in 2018 can take advantage of free electronic filing options offered through the New York State Department of Taxation and Finance. E-filers are not only less likely to experience filing errors, but also can receive their tax refunds up to two weeks faster than paper filers. Central New Yorkers who are eligible for free e-filing can do so by visiting tax.ny.gov/pit/efile/default.htm.
Specialists are also available to help free e-filers complete their returns. Visit irs.gov/individuals/free-tax-return-preparation-for-you-by-volunteers to find an assistance location near you. Residents who exceed the income threshold for free tax filing still have a plethora of e-filing software that they can choose from. For a list of e-file-approved commercial software to file your personal incomes taxes, visit tax.ny.gov/pit/efile/homepc.htm.
Tax relief is also available for many Central New Yorkers, from working families to retirees. Tax breaks like the Earned Income Tax Credit (EITC) are helpful, but regrettably the IRS estimates that nearly 380,000 eligible New Yorkers fail to claim valuable credits each year. So before you submit your returns, visit tax.ny.gov/pit/credits/income_tax_credits.htm to see what credits you are eligible to receive.
To protect Central New Yorkers from the impact of the new federal tax law, last year’s state budget created a state-operated charitable contribution fund that offers state and federal tax deductions, as well as a state tax credit equal to 85 percent, for those who donate. Local governments and school districts are also able to create similar funds that offer local property tax deductions equal to a percentage of the contribution amount.
It’s also important to beware of tax scams and fraud, especially if you use a paid tax preparer. Be sure to protect your information by using only IRS and state-registered tax preparers and ask questions about the cost of their services up front. You should also ask how you will receive your refund and whether the preparer will sign your documents. For tips on how to avoid tax scams, visit tax.ny.gov/pdf/pit/hiring-a-preparer-checklist.pdf.
Further, the deadline for property owners age 65 or older to apply or reapply for the Enhanced STAR tax exemption is fast approaching. Enrollment in the Income Verification Program (IVP) is due by March 1. For more information, visit tax.ny.gov/press/rel/2019/starivp010219.htm.
Whichever way you decide to file this year, there are a variety of services out there that can help make the process smoother, and I encourage all filers to take advantage. And remember, my office is always here to assist you. If you have questions about this or any other community issue, reach out to us at 315-452-1115 or [email protected].
