WHAT’S NEW FOR 2019 NEW YORK STATE INCOME TAX FORMS

Yesterday (Monday) New York State finally released the 2019 Form IT-201 and 2019 Form IT-203.  These forms are now available online at the NY Department of Taxation and Finance website, and online filing and “enhanced” fill-in forms is also available. 

There appear to be no changes to the format or layout of the 2019 forms.  They look exactly the same as the 2018 forms.  The few minor changes to NYS individual income taxes are -

* A few new obscure credits have been added and some expired ones have been extended.

* There are now so many voluntary contribution options on the IT-201 and IT-203 that New York has created a new Form IT-227 to claim voluntary contributions, with a total amount carried over to the IT-201 or IT-203.

* NY had originally “decoupled” from the new increased 60% of AGI limitation on the federal itemized deduction for cash (or check) contributions, keeping the previous 50% of AGI limit.  The state has changed its mind and has retroactively “recoupled” with this GOP Tax Act change – accepting the increased 60% deduction limit for 2018, 2019 and subsequent returns (until 2025). 

Speaking of “decoupling” - a reminder that NYS has “decoupled” from most of the Form 1040 changes enacted by the GOP Tax Act - 

* On NYS resident or non-resident income tax returns alimony continues to be included in income or allowed as a “adjustment to income” deduction, regardless of when the decree or agreement is dated, and there are new addition and subtraction modifications to be entered on the IT-201 and IT-203 to report or deduct alimony not reported on the 2019 federal Form 1040.  These modification codes are A-119 to report taxable alimony income and S-136 to deduct alimony paid.

* And NY continues to allow you to itemize on your NY State IT-201 and IT-203 regardless of whether you itemized deductions or claimed the Standard Deduction on your federal Form 1040. Like last year, New York Itemized Deductions are computed using the “old” federal rules as they existed prior to the enactment of the GOP Tax Act.  The deduction for property taxes is not limited to $10,000, and home equity interest on up to $100,000 in principal, all casualty and theft losses, and all previously allowed Miscellaneous expenses, including investment expenses and unreimbursed employee business expenses, are deductible on the NY return.  So, if you will be filing a NY state income tax return for 2019, your tax preparer will need information on all these deductions. 

TTFN