The new federal tax bill called the Tax Cuts and Jobs Act (TCJA) makes many changes to federal itemized deductions beginning in 2018. However, the federal standard deductions for all filing statuses have almost doubled. Therefore, many of us will probably find it more beneficial to use the standard deduction beginning in 2018 for federal income tax purposes.
But wait! New York State announced it will “decouple” from the federal deduction limitations, beginning in 2018.
This means that for New York State personal income tax purposes, residents are entitled to claim itemized deductions as they existed immediately prior to the enactment of the new federal tax bill. Therefore, for New York State income tax purposes, residents will be allowed, without limitation, deductions for local real property taxes, but not state and local income taxes. Miscellaneous deductions subject to adjusted gross income limitations will also be allowed. This permits itemized deductions to be available for New York State purposes even where the taxpayer claims the federal standard deduction.
In light of this “decoupling”, please plan to continue to maintain accurate and complete records, as in years past.
We suggest you consult your income tax advisor regarding some planning strategies that you should consider before year-end in order to maximize your itemized deductions for New York State income tax purposes.
For guidance on tax planning strategies, contact Kathleen Kaminski, CPA, Senior Tax Manager, at 315.701.6322 or email@example.com.
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Grossman St. Amour CPAs PLLC has been in business for over 60 years. As a certified public accounting firm located in central New York, Grossman St. Amour CPAs is focused on the quality service standards that are highly regarded in the accounting profession. Grossman St. Amour CPAs provides businesses and individuals with accounting, audit, taxation, business planning and valuation, financial planning, investment consulting, and fraud examination and deterrence services. For more information about how Grossman St. Amour CPAs PLLC can be of service to you, contact firstname.lastname@example.org, or call 315.701.6350.