Hi,
My main goal is to help you to maximize your tax savings. We all know that New Yorkers pay one of the highest income tax rates in the country.
With this in mind, we have worked out a summary of NY-specific credits and deductions that you may have overlooked. Make sure to read all the way through to check if any apply!
Credits For Individuals:
- Earned Income Credit is up to $8,046 and depends on income, filing status and number of qualifying children
- $1000 per qualifying child under 4 years old; for 4-16 y/o we have the $330 Empire State Child Credit
- $400 Credit for college tuition
- Up to $9,000 if you have 5 or more qualifying persons for the Child and dependent care Credit
- The New York State Household Credit provides a maximum (!) of up to $75 for single filers and up to $125 for married filers 😀
- And a whopping up to $375 for Real Property Tax Credit 🫠
Credits For Homeowners and “Green” Initiatives:
- STAR Program provides eligible homeowners with partial exemptions from school property taxes
- Up to $5000 for Solar Energy System Equipment Credit, which offers a credit for 25% of the cost of purchasing and installing solar energy system equipment at your principal residence
- Clean Heating Fuel Credit available for purchasing bioheating fuel used for residential heating or hot water production
Credits For Businesses and Employers:
- Excelsior Jobs Program Tax Credit provides businesses with a credit of up to 6.85% of the wages paid for each new job created. Green or green CHIPS projects, may qualify for a higher credit amount of up to 7.5% of wages, while semiconductor supply chain projects can receive up to 7% of wages!
- Maximum of $5,000 per full-time employee and $2,500 per part-time employee Workers with Disabilities Employment Tax Credit
Credits For Farms:
- Ask us directly – this is too niche for a general guide 😁
Other Deductions
- New York allows residents to bypass the state & local tax federal deduction limit and take the full amount of state & local tax deduction – you have to have the correct structure for this, however
- New York State still allows a deduction for qualifying moving expenses if you itemize on your state return
- Medical and Dental Expenses that exceed 10% of your Adjusted Gross Income (AGI) are deductible
- NYers can can deduct up to $5,000 annually ($10,000 for married) from their NY taxable income for contributions to a 529 plan; those contributions grow tax‑deferred with tax‑free withdrawals for qualified education expenses at both the federal and state level. The account beneficiary can be a child, another relative, a non‑relative, or even yourself.
Let’s hop on a quick 10-15 minute call to see which one of these credits applies to you! Please contact us by early next week to make sure we secure a spot before the tax season heats up.
Sincerely,
—
George Dimov, CPA
Licensed and Insured
(833) 829-1120 toll free
(212) 994-8081 Fax
www.dimovtax.com
