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NYS Income Tax Credits: Part 2
Posted By Joseph S. Reisman On February 14, 2013 @ 12:00 pm In News & Features | No Comments
Telling Tips  is a series of articles from local experts to help you save money, make better decisions and plan for a better future.
In my last article , I summarized four credits that New York State offers. Those were the Child and Dependent Care Credit, the College Tuition Credit, the Earned Income Credit, and the Empire State Child credit. Here are a few more many of you can take advantage of:
Noncustodial Parent Earned Income Credit  (Form IT-209) Requirements:
If you qualify, tell your tax preparer, and then review your New York State tax return to make sure that you received this credit. Unlike other credits, this does not mirror any federal credits.
For your convenience, New York State will compute the credit for you.
Real Property Tax Credit (Form IT-214) Requirements:
If you qualify, your refundable credit can be up to $375.
Long-term Care Insurance Credit (Form IT-249) Requirements:
Even if you can’t take advantage of this on the federal tax return, New York State allows a credit of 20 percent of the premium. Unfortunately, it is not refundable.
Nursing Home Assessment Credit (Form IT-258) Requirements:
This credit is six percent of the assessment that you directly paid during the year. This should be on the nursing home bill. Don’t miss it. Many tax preparers are not familiar with this one.
Volunteer Firefighters’ And Ambulance Workers’ Credit (Form IT-245) Requirements:
If you qualify, your refundable credit is $200 (and $200 for your qualifying spouse).
Tuition And Fees Deduction
When preparing the federal return, generally the American Opportunity Credit (AOC) is the better choice than the Lifetime learning credit. However, if you don’t qualify for the AOC, you need to determine if the Lifetime learning credit or the tuition and fees deduction is best. Many times, the federal savings will be better if you use the Lifetime learning credit, but if you use the “tuition and fees deduction,” you may save more between the federal and state. This is because the “tuition and fees deduction” is allowed on the New York State return, but the Lifetime learning credit is not. Take a few minutes to compute your tax both ways. It can mean several hundred dollars in savings.
New York City Credits
If you are a resident in any of the five boroughs of New York City, you are eligible for the NYC credits, which mirror those of New York State. These “me-too” credits are:
The School Tax Credit (Form IT-210): Even if you don’t have to file a tax return, you are entitled to the refundable School Tax Credit of $63 (single) or $125 (married) if you are a resident and not claimed on someone else’s return.
Beer Production Credit (I just had to throw this one in): If you are a registered distributor producing fewer than 60 million gallons in NYS, you are entitled to this credit.
Personally, I think this credit should be a “Beer Consumption Credit.” (Let’s get this party started!)
There are many more New York State and New York City credits, so be sure to review them all on the NYS website before submitting your return. Remember, it’s your money.
Have a good week.
IRS Sign: “Drive carefully. We need every taxpayer we can get.”
Joseph Reisman, of Joseph S. Reisman & Associates, has been serving tax prep and business accounting expertise from his Coney Island Avenue office for more than 25 years. Check out the firm’s website .
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URLs in this post:
 Image: http://www.flickr.com/photos/zoofythejinx/232048147/
 Telling Tips: http://www.sheepsheadbites.com/tag/telling-tips/
 my last article: http://www.sheepsheadbites.com/2013/02/nys-income-tax-credits-part-1/
 Noncustodial parent earned income credit: http://www.tax.ny.gov/pit/credits/nceic.htm
 Real property tax credit: http://www.tax.ny.gov/pit/credits/real_property_tax_credit.htm
 New York City credits: http://www.tax.ny.gov/pit/credits/new_york_city_credits.htm
 the firm’s website: http://www.taxhelp1040.com/
 “Let Me Die”: A Primer On End-Of-Life Planning: http://www.sheepsheadbites.com/2012/10/let-me-die-a-primer-on-end-of-life-planning/
 “I’m From The Government And I’m Here To Help.” And Other Myths.: http://www.sheepsheadbites.com/2013/01/im-from-the-government-and-im-here-to-help-and-other-myths/
 Your Vehicle Deduction: Standard Mileage or Actual Expenses?: http://www.sheepsheadbites.com/2011/11/your-vehicle-deduction-standard-mileage-or-actual-expenses/
 Your Spouse’s Tax Liabilities Are Yours: http://www.sheepsheadbites.com/2012/10/your-spouses-tax-liabilities-are-yours/
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