2017 Income Tax Assistance

Volunteer Training

Agenda

Volunteer Resources

New York State Filing Requirements

Tax Updates

New York State Credits

Return Filing Tips

Tax Department Programs and Initiatives

Confidential Information

Taxpayers using volunteer program services provide

personal information to the volunteers, such as

names, addresses, social security numbers, birth

dates, and bank account information.

Volunteers must keep all information confidential

and safeguard it from unauthorized individuals

and misuse.

Volunteer Resources

Resources Available for Volunteers

Volunteer Resource Center www.tax.ny.gov/volunteer

Training presentations and webinars

Email subscription service

Forms and publications

Training and Guidance

Site Coordinator Training 2017

TaxSlayer Tips 2017

Pension and Residency Information

Military Personnel

Form TP-300, Quick Reference Desk Guide (2017)

Form TP-301, Income Tax Worksheet (2017)

2017 Free Filing Assistance Volunteer Packet

2017 Free Filing Assistance Volunteer Packet

TP-300 and TP-301

IT-201 with instructions, Full-Year Resident Income Tax

Return packet for New York State, New York City,

Yonkers and MCTMT

IT-225 and IT-225-I, New York State Modifications

IT-195, Allocation of Refund

IT-214 and IT-214-I, Claim for Real Property Tax Credit

for Homeowners and Renters

2017 Free Filing Assistance Volunteer Packet

DTF-215, The Earned Income Tax Credit -

Recordkeeping Suggestions for Self-employed Persons

CO-8, Estimated Tax Sheet - How are you paid for your

work and services?

NYC-208 and NYC-208-I, Claim for New York City

Enhanced Real Property Tax Credit

NYC-210 and NYC-210-I, Claim for New York City

School Tax Credit

Coordinator’s Request Packets and Forms

Site Coordinators should send an email no later than December

20, 2017 to OutreachServices@tax.ny.gov to request training

and site materials.

Name, address (physical addresses only, no PO boxes), and

telephone number

Number of 2017 Free Filing Assistance Volunteer Packets (3

maximum)

Form type and quantity (TP-301, NYC-208 and NYC-210 only)

Materials will ship no later than the week of January 15, 2018.

Forms and publications

You can download forms and publications from our

website.

Select documents are available in languages other

than English (Search: Language Access).

If necessary, additional quantities of forms also can be

mailed to you during the filing season. Order them by

sending an email to NYStax.SpecReq@tax.ny.gov.

TP-301, Income Tax Worksheet

Provides guidance on income, expenses, and

deductions that do not automatically carry over

from federal return:

Residency

Child support

Eligibility for credits

Contributions

Pensions

Direct Line for Assistance

Tax Practitioner Hotline

Limited or no wait time

Extended hours for peak seasons

Experienced staff to answer more

technical questions

New York State Filing Requirements

New York State Resident or Nonresident

If the taxpayer is a resident for New York State income tax

purposes and is required to file an income tax return, they will

need to file Form IT-201, Resident Income Tax Return.

If the taxpayer is a nonresident for New York State income tax

purposes and is required to file an income tax return, they will

need to file:

• Form IT-203, Nonresident and Part-Year Resident Income Tax

Return; and

• Form IT-203-B to report where in New York State the taxpayer lives.

New York State Residency

To be considered a resident of New York State for tax purposes,

an individual must fall into one of two categories:

Domiciliary - the taxpayer's domicile is New York State.

Statutory Resident - the taxpayer's domicile is outside of

New York State, but:

• the taxpayer maintains a permanent place of abode in New York

State; and

• the taxpayer spends more than 183 days in New York State.

New York Resident Filing Requirements

A taxpayer must file a New York State return if they are

required to file a federal return.

A taxpayer didn’t have to file a federal return but if the

taxpayer had, their federal adjusted gross income plus

New York State additions would have been $4,000 or

more ($3,000 or more if the taxpayer can be claimed

on another’s person federal tax return).

A taxpayer wants to claim a refund or a credit.

16

New York City Change of Residence

New York City follows the same rules as New York State for

change of residency status. The method for computing the tax

differs from New York State in that the city computes a straight

tax on the income earned during the period of residency.

Use Form IT-360.1 for a New York State change of residence.

2017 Exemptions

Dependent exemption $1,000

No New York State personal exemption for the

taxpayer and spouse allowed

18

Federal 2017 Standard Deduction Table

Filing Status Standard Deduction

Single $6,350

Married Filing Jointly $12,700

Married Filing Separately $6,350

Personal Exemption $4,050

Head of Household $9350

19

2017 New York State Standard Deduction Table

Filing StatusStandard

Deduction

Single – claimed on another taxpayer’s federal return $3,100

Single – not claimed on another taxpayer’s federal return $8,000

Married Filing Jointly $16,050

Married Filing Separately $8,000

Head of Household (with qualifying person) $11,200

Qualifying widow(er) with dependent child $16,050

20

Addition Adjustments to Federal Income

Public Employee 414(h) retirement contributions

Interest on state and local bonds other than from

New York State

New York’s 529 College Savings program

• transfer to another state’s program

• nonqualified distributions

Subtraction Adjustments to Federal Income

Income tax refund included in federal income

Interest on US Government Bonds

New York State 529 College Savings Program

Pensions of New York State, Local governments, and

Federal government

Pension exclusions (reached age 59 ½)

Social Security income included in federal income

Interest on NYHELP paid after July 1, 2009

New York State and Local Sales Tax

New York State sales tax is owed if you purchase

property or a service delivered to you in New York

State without payment of sales and use tax.

This includes purchases through the internet, by

catalog, or from shopping channels on the television.

Most tangible personal property is subject to tax.

Tax Updates

Driver License Requirement

The document number for both the primary taxpayer

and spouse will be required.

• a return will not be accepted if a New York State ID

exists and the document number is missing for either

the primary taxpayer or spouse

Only the first three characters of the document

number will be required.

Refund Allocation to 529 Accounts

Form IT-195, Allocation of Refund

Allows taxpayers to allocate all or a portion of their

refund into up to three New York State 529 College

Savings Plan accounts

If refund claim is reduced or denied, the

disbursements will not be processed

Gift for Veterans’ Homes

New checkbox in 2017 for contributions to the Veterans’

Home Assistance Fund.

Contributions disbursed equally for care and

maintenance of New York State veterans’ homes at:

• Oxford• St. Albans• Batavia• Montrose• Stony Brook University

For both personal income tax and corporation tax

EITC Dependent Relationships

Relationship information added back to forms:

IT-215, Claim for Earned Income Credit, and

IT-209, Claim for Noncustodial Parent New York State

Earned Income Credit.

Change in City Residence Status

IT-360.1, Change of City Resident Status

Enter each month and day as a two-digit number for the

period taxpayer was a New York City resident.

Family Tax Relief Credit was discontinued after tax year

2016, and the field to claim the credit has been removed.

Totals from Form IT-201, lines 69 and 69a, are required

on Line 61a.

Farm Workforce Retention Credit

$250 credit per eligible farm employee in 2017 tax year

• increases to $300 in 2018

• phases up to $600 by 2021 tax year

Employee must work 500 hours or more during tax year

Credit is for both personal income tax and corporation tax

Conversion of STAR Exemption to a Credit

STAR exemption closed to new applicants

• effective immediately and applies to tax years beginning

on or after January 1, 2016

• new owners must apply to the Tax Department by July 1

Current STAR exemption recipients may keep their

exemption or may choose to receive the income tax

credit instead.

Conversion of STAR Exemption to a Credit

Homes transferred to new owners would need to

transfer to the new income tax credit

Eligibility remains the same

Recoupment timing: three prior school years

Reimbursement due to administrative error

Enhanced STAR late filing hardship exemption

Late-filed STAR renewal application due to hardship

• request an extension up until the last day for paying

school taxes without incurring penalty or interest

STAR and local senior citizens exemption

Effective 60 days after enactment

New York City Rate Reduction Credit

School Tax Reduction Credit for New York City residents

• taxpayers with income equal to or less than $250,000

• based on the taxpayer’s New York City taxable income

A worksheet will be included in the IT-201/IT-203

instructions to calculate the amount (no additional credit

form needed).

Nonqualified Deferred Compensation

Taxpayers who were required to report certain nonqualified

deferred compensation on their 2017 federal income tax

return, or who had any amounts flow through to them from

a pass-through entity, must indicate Yes at item D3 on Forms

IT-201 and IT-203.

Lake Ontario Disaster

Taxpayers located in the disaster zone may deduct the

taxable portion of pension/annuity income used for

repairs to primary residence.

Amount cannot be claimed more than once (cannot be

excluded for disaster relief and also included in

itemized deductions or pension exclusions).

Disasters in other states

Those adversely affected will have the opportunity to

demonstrate, on a case-by-case basis, reasonable cause

for the waiver of penalties for late filing or late payment.

Destruction of a place of business or business records,

and the inability to timely assemble information, both

constitute reasonable cause.

Provide an explanation of the circumstances establishing

reasonable cause.

Clean Heating Fuel Credit Modified

Purchase bioheat used for space heating or hot water

production for residential purposes within New York.

Credit equals one cent for each percent of biodiesel

per gallon of bioheat, up to 20 cents per gallon.

Expiration date of the credit extended to January 1,

2020; however, purchases on or after January 1, 2017

that is graded below B6 (such as B2 or B5) will no

longer qualify for the credit.

Withholding Verification

Businesses are responsible for reporting wage and

withholding of employees/customers annually.

Withholding sources include employers, financial

institutions, lottery agencies, and unemployment.

Withholding claimed by taxpayers on returns is

matched to reports received for the taxpayer.

Withholding verification stopped fraud of approximately

$148M last year.

Withholding Verification

Taxpayers may have their refunds delayed when

businesses fail to report wages and withholding

accurately and on time.

Some discrepancies result in automated letters to

taxpayers with no manual review.

Most require manual review which may allow the return

to continue to process or will result in a letter to the

taxpayer requesting additional information.

Direct taxpayer to provide withholding information to us

Third Party Designee

Authorizes the Tax Department to discuss any questions

related to the specific return.

Authorizes the designee to give and receive confidential

taxpayer information related to:

• the return, including missing information;

• notices or bills arising from the return (they will not be sent

to the designee);

• payments and collection activity arising from the return;

and

• the status of the return or refund.

New York State Refundable Credits

IT-215, Earned Income Tax Credit (EIC)

The taxpayer must claim the federal earned income credit

(EIC) for tax year 2017.

30% of the federal credit (additional 5% for New York

City residents).

New York State will conform with the federal increased

amounts and increased dependent exemptions

New York State EIC must be reduced by the amount of any

household credit the taxpayer is allowed (full-year residents

– fully refundable; part-year residents – non refundable).

IT-209, Noncustodial Parent Earned Income Credit

A taxpayer may claim the noncustodial EIC only if they

meet all of the following conditions for tax year 2017:

must be a full-year New York State resident and at least 18 years|

of age;

must be a parent of a minor child with whom they do not reside; and

must have an order in effect for at least one-half of the tax year

requiring the taxpayer to make child support payments payable

through a Support Collection Unit (SCU), and have paid an amount

in child support in 2017 at least equal to the amount of current child

support the taxpayer was required to pay by all court orders.

IT-209, Noncustodial Parent Earned Income Credit

The amount of credit is equal to the greater of:

• 20% of the federal EIC that would have been allowed if the

noncustodial child met the definition of having one

qualifying child; or

• 2.5 times the federal EIC that would have been allowed if

the taxpayer had satisfied the eligibility requirements,

computed as if taxpayer had no qualifying children.

If the amount of the credit is greater than the taxpayer’s

tax liability, the excess may be refunded without interest.

If the credit is denied, the taxpayer may request a review.

IT-213, Empire State Child Credit

Refundable for qualifying children ages 4-16

Resident taxpayers may claim a credit equal to the

greater of (a) $100 times the number of children who

qualify for the federal child tax credit, or (b) 33% of the

taxpayer’s allowed federal child tax credit.

If the child is claimed on someone else’s return, the

taxpayer isn’t eligible.

IT-216, Child Care and Dependent Credit

A minimum of 20% and as much as 110% of the

federal credit, depending on the amount of the

taxpayer’s New York adjusted gross income.

If the taxpayer qualifies to claim the federal Child and

Dependent Care Credit, the taxpayer can claim the

New York State Credit (whether the taxpayer actually

claims the federal credit or not).

The credit is fully refundable.

IT-214, Claim for Real Property Tax Credit for Home Owners and Renters

There are no changes in eligibility for 2017:

Income less than $18,000

Adjusted rent less than $450

Must have paid real property taxes or rent

Market value of the home less than $85,000

Must be a resident for the entire year

Can’t be claimed as a dependent

IT-214 Definitions

Members of household

All who share your residence and its furnishings, facilities,

and accommodations, whether they are related to you or not.

Household gross income

Income from all sources that you and members of your

household receive. It does not include food stamps,

Medicare, Medicaid, scholarships, grants, surplus food or

other relief

IT-214 Definitions

Adjusted rent

The rent paid after subtracting any charges for heat, gas,

electricity, furnishings, or board. Don’t include any

subsidized part of your rental charges in adjusted rent.

Property taxes paid

In computing the amount of school district property taxes

paid, include only the amount of school district property

taxes paid.

IT- 272, Claim For College Tuition Credit

Only tuition required for the enrollment or

attendance at an institution of higher education

for undergraduate studies.

up to $10,000 per eligible student

4% refundable credit or amount as an added

itemized deduction

for tuition expense under $5,000, the credit is the lesser

of $200 or the tuition expense

IT- 272, Claim For College Tuition Credit

Expenses may be paid by cash, check, credit card, or

with borrowed funds.

The eligible student doesn’t need to be enrolled in a

degree program or to attend full time for the expenses

to qualify.

If the student is claimed as a dependent, these

payments are treated as paid by the taxpayer.

IT-245, Claim For Volunteer Firefighter and

Ambulance Worker Credit

$200 refundable credit or $400 if married filing jointly and

both spouses qualify:

• full-year resident; and

• active volunteer firefighters or ambulance workers for the

entire year for which the credit is claimed.

Use IT-201-ATT - Code 354 on line 12

A taxpayer cannot claim the Volunteer Firefighter and

Ambulance Worker Credit if the taxpayer receives a real

property tax exemption that relates to their volunteer service.

IT-249, Claim for Long-Term Care Insurance Credit

The credit is for premiums paid for qualified long-

term care insurance.

The credit is equal to 20% of the premiums paid

during the tax year for the purchase of or for

continuing coverage under a qualifying long-term

care insurance policy.

Health and life insurance don’t qualify.

IT-258, Refundable Nursing Home Credit

Available for amount of assessment imposed on a

residential health care facility.

The assessment must be separately stated and must be

paid directly by the individual taxpayer claiming the credit.

Credit equals the assessment amount (not expenses)

separately stated and accounted for on the

billing statement.

Use IT-201-ATT - Code 258 on line 12

Return Filing Tips

E-File Mandate and Exemption Codes

Volunteer preparers are not subject to e-filing mandate.

Code Exemption Type Code Exemption Type

01 Attorney 02 Employee of Attorney

03 CPA 04 Employee of CPA

05 Public Accountant (PA) 06 Employee of PA

07 Enrolled Agent 08 Employee of Enrolled Agent

09 Volunteer Tax Preparer 10 Employee of business

preparing that business’ tax

return

PIT E-file Mandate

New York State supports both linked and

unlinked returns.

• Even if the IRS will not accept a return, the state return

can be filed as an unlinked return.

• Most software allows unlinked returns.

All forms can be e-filed, either directly through

software or by pdf attachment to the filing.

Forms and E-file changes

TP-3, Bulk Tax Order Form, no longer in use

Forms no longer able to e-file on the New York State

website:

• IT-201

• IT-203

• IT-214

• NYC-208

• NYC-210

Enter Date of Birth

Date of birth is required information.

If not provided, taxpayers may not receive credit

amounts they are entitled to based on age.

Can lead to adjusted refunds and refund denials.

Amended Returns

E-File amended returns for tax year 2015 and forward

A taxpayer must file a New York State amended return if:

• the taxpayer made an error on the original return

• the IRS made changes to the federal return - 90 days to notify

New York State

• the taxpayer needs to file a protective claim

• the taxpayer needs to report a net operating loss carryback

IMPORTANT REMINDER: Treat an amended return as an

original return. Include all credit forms and attachments.

Federal Change to Return

Report a federal change to New York State

within 90 days

File an amended return

IRS redetermination letter

Attachments to Returns

Must be in PDF format

Software provides assistance

Don’t password protect, encrypt, or in any way

document-protect PDF attachments

414(H) Addition Modification

New York public employees who are members of a public

retirement system must report their retirement contributions,

414(h), as an addition modification to their federal adjusted

gross income on their New York State return.

New York City employees who participate in a New York City

flexible benefits program, IRC 125, must report the amount

deducted or deferred from their salary as an addition

modification to their federal adjusted gross income.

414(H) Addition Modification

Add amount from W-2 box 14, listed as 414(h), to

line 21 (software may have specific entries)

Add amount from W-2 box 14 listed as IRC 125, to

line 23

Bonds invested outside of New York are taxable to

New York and must be added as a New York State

addition (line 20)

Pension Subtraction Modifications

A pension or annuity subtraction may only be claimed if pension

income was included in total income.

Deferred compensation or supplemental pension income is not

fully excludable government pension income.

If a taxpayer received pension income as a beneficiary, and the

decedent would have been 59 ½ if he continued to live, the

beneficiary is eligible for an exclusion with certain limitations.

The exclusion must be prorated amongst all beneficiaries in the

same ratio as the distribution is shared, even if not all

beneficiaries are New York residents.

College Tuition Credit Errors (IT-272)

Claiming graduate level tuition expenses

Claiming tuition expenses that were paid by scholarships, grants, and/or an employer

Claiming expenses for:

• room and board;

• Insurance;

• medical expenses;

• transportation;

• course related books, supplies, or equipment; and

• fees paid as a condition of enrollment, attendance, or for nonacademic activities.

College Tuition Credit Errors (IT-272)

Claiming tuition expenses in a different tax year than

they were paid.

Claiming the college tuition credit for someone who

is not the taxpayer or a dependent.

Wrong student SSN

Wrong college EIN

College Tuition Savings

Contributions to a NYS 529 College Savings Plan may be

deducted from federal income as a New York subtraction

The contributions are the amount contributed to the program

up to $5,000 for single taxpayers and up to $10,000 for

married filing a joint return.

Only payments made during the taxable year can be claimed.

You may not carry unclaimed amounts to a future year.

You must be the owner of the account. If you contribute to

an account owned by someone else, you cannot claim

the subtraction.

Long-Term Care Insurance Credit

Credit is only allowed for a qualifying long-term care

insurance policy.

Health insurance is not considered a long term care

plan.

Life Insurance is not considered a long term care

plan.

Debit Card

No longer available

• effective for refunds processed after August 15, 2016.

Tax years 2011 and forward

• applies to all returns including amended returns.

No checkbox for debit card on 2016 or 2017 tax return.

Paper-filed Returns

Form IT-2, Summary of W-2 Statements

Effective tax year 2015 and forward, you must complete Form

IT-2 for all Form W-2’s. For older years, submit Form W-2 with

the paper-filed return.

Form IT-1099-R, Summary of Federal Form 1099-R

Effective tax years 2015 and forward, if there is New York State,

New York City, or Yonkers withholding tax shown on the 1099-R,

you must submit the IT-1099-R with the paper-filed return.

Self-Employed

Separate personal and business accounts

Estimated tax payments

Sales and use tax

DTF-215, Record Keeping Suggestions for

Self-Employed Persons

Under Estimation Penalty

Taxpayers must prepay income tax as they earn or receive income during the tax year.

If not enough tax is prepaid through withholding or estimated tax, a penalty is imposed.

Last estimated tax payment is due by January 15.

Payments made with extensions are not timely estimated tax payments.

Do not compute this penalty, taxpayers will be billed.

Estimated Tax Payments

Software

Twelve estimated tax payments scheduled

Scheduled when return is filed or as needed

Different bank accounts

Different dollar amounts

Note: The IRS allows four electronic payments, and they

must be sent at the time the return is filed

Common Mistakes

Incorrect taxpayer data - verify name, address (including

apartment number), social security numbers of

taxpayers and dependents

Missing signatures

Preparer section must be completed in its entirety

Federal amounts must appear in the first column of the

IT-203 and the IT-360.1

IT-249, Long-Term Care Insurance Credit: disability

insurance isn’t eligible

Common Reasons for Rejection

Amount of wages, tips, and other compensation

reported on return less than amount reported on

Form(s) W-2 and/or 1099-R

Required information missing for qualifying person

reported on Form IT-216

A computational error occurred in calculating the New

York State adjusted gross income on return

Common Reasons for Rejection

New York State wages cannot be more than

federal wages

Negative amount not allowed for these lines

Withholding (New York State, New York City, or

Yonkers) should not be greater than or equal to

gross distributions

Tax Department Programs and Initiatives

Identity Theft

Notify Federal Trade Commission at www.identitytheft.gov

Notify taxing agencies or respond immediately to a notice

• IRS Form 14039

• New York State Form DTF-275

Contact credit bureau to place “fraud alert” on credit record

• Equifax 1-800-766-0008

• Experian 1-888-397-3742

• TransUnion 1-800-680-7289

Identity Theft

Visit our website www.tax.ny.gov Search: Identity Theft

Complete Form DTF-275, Identity Theft Declaration

Fax documents to: 518-435-2990 Attention: Identity Theft

Mail to: NYS Assessment Receivables

Attn: Identity Theft

PO Box 4128

Binghamton, NY 13902-4128

Call 518-457-5181 for more information.

Voluntary Disclosure and Compliance Program

($675 million since inception)

• Clean up unpaid taxes, unfiled returns

• Covers all tax types

• Not eligible if you filed a return and didn’t pay. Wait for a bill.

• Avoid monetary penalties and possible criminal charges by:

• telling the department what taxes are owed;

• paying those taxes; and

• entering an agreement to pay all future taxes.

Quick Pay

Ideal for individuals who typically have limited

interaction with the Tax Department

Make payment for an existing balance using bank

account and routing number

No Online Services (OLS) account required

Business taxpayers continue to use OLS for payments

Installment Payment Agreements (IPA)

Self-service option available

OLS IPA web application or by phone through the

interactive voice response (IVR) system to establish a plan

Direct payment information needed for OLS

Eligibility:

• current with filings;

• no prior IPA defaults; and

• no open collection, bankruptcy, or protest cases

IPA Self-Service Options

Balances must be below $20,000 with a repayment

term of less than 36 months.

Approximately one-third of IPAs set up by speaking with a

representative were eligible to use the OLS/IVR options.

In a 10-month period, over 18,000 IPAs were done

using these options.

Office of the Taxpayer Rights Advocate

Provides free and independent tax

problem assistance

Ensures that your case is reviewed

in a timely manner

Helps you understand important

notices and deadlines

Explains your rights and

responsibilities under the law

Helps resolve long standing tax issues

Bureau of Conciliation and Mediation

Request a conference: file Form CMS-1-MN

• Issuing division attempts to resolve. If unable to

resolve, a conference is scheduled.

During conference

• impartial conferee conducts conference

• the department explains its position and taxpayer

explains their position, asks questions, and submits

supporting documents

Bureau of Conciliation and Mediation

After conference: conferee sends a

proposed resolution

• Agree - sign and return consent within 15 days

• Disagree - the conferee will issue a Conciliation Order

that will bind the taxpayer and the Department, unless

the taxpayer files a petition for a hearing with the

Division of Tax Appeals.

Shorter

one page instead of four

Fewer signatures

the representative no longer needs to sign

the taxpayer’s signature is still required, but no longer

needs to be notarized or witnessed

Remains active

a new POA won’t automatically revoke any POA on file

Revised Power of Attorney Form

Efficiency • Integrity • Fairness

Presenting the

newly revised

Connect With Us

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Efficiency ● Integrity ● Fairness