BILL NUMBER: S5595

SPONSOR: LIU
 
TITLE OF BILL:  An act to amend the tax law, in relation to filing of
income tax returns

 
PURPOSE:

To eliminate a requirement in the Tax Law that requires the filing of a
NYS Income Tax return even when that taxpayer is not required to file a
federal return.

 
SUMMARY:

Section 1: Amends § 651(a)(1) of the Tax Law eliminating the requirement
that a taxpayer with income coming only increased by modifications under
§ 651(b)of the Tax Law in excess of $4000 file a State return.

Section 2: Establishes the effective date.

 
              

JUSTIFICATION:

Current NY law requires a taxpayer that files a federal income tax
return to also file a State return. The section of law requiring the
State return also requires a NY taxpayer who does not have to file a
federal return to file a State return under certain circumstances.  They
must still file if they have taxable income in excess of $4000 or the
amount of the NY Standard Deduction, currently $8000 for a single filer
or $16,050 for a couple. Due to the increase in the Standard Deduction,
the $4000 qualifier is out of date and should be repealed.

For example currently, a retired married couple with $2000 in bank
interest income, $12,000 in pension income and $36,000 in Social Securi-
ty income would not be required to file a federal return.  However,
because of the $4000 provision in NY they must still file a State
return. Eliminating this provision will save time and money for taxpay-
ers who should not be filing State returns and reduce the amount of
unnecessary returns NYS Tax and Finance must process.

 
LEGISLATIVE HISTORY:

 
FISCAL IMPACT:

None to the State. Those filers impacted should not need to file a NYS
Income Tax Return.

 
EFFECTIVE DATE:
This act shall take effect immediately.

                                
 
BILL NUMBER: S5595A

SPONSOR: LIU
 
TITLE OF BILL:

An act to amend the tax law, in relation to filing of income tax returns

 
PURPOSE:

To eliminate a requirement in the Tax Law that requires the filing of a
NYS Income Tax return even when that taxpayer is not required to file a
federal return.

 
SUMMARY:

Section 1: Amends § 651(a)(1) of the Tax Law eliminating the requirement
that a taxpayer with income coming only increased by modifications under
§ 651(b)of the Tax Law in excess of $4000 file a State return.

Section 2: Establishes the effective date.

              

 
JUSTIFICATION:

Current NY law requires a taxpayer that files a federal income tax
return to also file a State return. The section of law requiring the
State return also requires a NY taxpayer who does not have to file a
federal return to file a State return under certain circumstances.  They
must still file if they have taxable income in excess of $4000 or the
amount of the NY Standard Deduction, currently $8000 for a single filer
or $16,050 for a couple. Due to the increase in the Standard Deduction,
the $4000 qualifier is out of date and should be repealed.

For example currently, a retired married couple with $2000 in bank
interest income, $12,000 in pension income and $36,000 in Social Securi-
ty income would not be required to file a federal return.  However,
because of the $4000 provision in NY they must still file a State
return. Eliminating this provision will save time and money for taxpay-
ers who should not be filing State returns and reduce the amount of
unnecessary returns NYS Tax and Finance must process.

 
LEGISLATIVE HISTORY:

 
FISCAL IMPACT:

None to the State. Those filers impacted should not need to file a NYS
Income Tax Return.

 
EFFECTIVE DATE:
This act shall take effect immediately.