Tax Professional Newsletter (01/22/2019)
Copies of W-2s and federal returns
If you or your client are requesting information to file an income tax return for the current tax year, request a copy of Form W-2 from the employer; we cannot provide this information for the current tax year until April 16.
Reminder: Employers have until January 31 to mail W-2s to their employees; clients should wait until mid-February to receive them before requesting a copy from their employer.
For more information, visit Get a copy of your W-2 or federal return.
Driver license requirement
New York State requires you to include your client’s driver license or non-driver ID information on their return. This applies to both the primary taxpayer and the spouse (if applicable). You must enter your client’s information each tax year as New York State does not allow the retention of driver license information by tax preparation software.
For more information, visit Driver license requirement.
Reviewing your client’s tax account balance
Before you file your client’s return, be sure to review their tax account balance to ensure you are reporting the correct amount of payments on their return. If your records disagree with the estimated tax amounts shown, complete and submit Form IT-2105.1, Reconciliation of Estimated Tax Account for Individuals, by April 1.
With a signed E-ZRep Form TR-2000, Tax Information Access and Transaction Authorization, you can view your client’s tax account balance from your Tax Professional account, including:
- estimated tax payments,
- amounts carried forward from a prior tax year, and
- extension payments, if any.
For more information, visit Review your tax account balance before you file.
Claiming credits, income, and deductions
Avoid delays in the processing of your client’s return by claiming only the credits, income, and deductions they can provide required documentation for.
If your client gets an inquiry letter from us they must supply the acceptable proof of the credits, income, and deductions claimed.
To help your client determine whether they may claim certain credits, income, or deductions, visit Recordkeeping for individuals.
Personal income tax changes for tax years 2018 and after
For tax years 2018 and after, New York State’s individual income tax treatment of certain federal items of income and deductions will now differ.
See TSB-M-18(6)I, New York State Decouples from Certain Personal Income Tax Internal Revenue Code (IRC) Changes for 2018 and after, for more information.
Filing reminders for personal income tax
- Amended returns must include all credit forms, schedules, and attachments included with the original return.
- Enter the correct dates of birth and Social Security numbers for the primary taxpayer, the spouse, and the dependents (if applicable).
- Enter the correct address (apartment or house number, PO box or street address, city, state, and ZIP code) where your taxpayers receive mail.
- Enter the correct bank account information (full bank account number and the routing transit number of the financial institution).
Sales tax guidance for businesses with no physical presence in New York State
N-19-1, Notice Regarding Sales Tax Registration Requirement for Businesses with No Physical Presence in New York State, explains how the U.S. Supreme Court's decision in South Dakota v. Wayfair affects sales tax registration requirements for businesses having no physical presence in New York State.
Additional information can also be found on Registration requirement for businesses with no physical presence in New York State.
2019 MTA surcharge rate and deriving receipts thresholds
TSB-M-18(5)C, 2019 MTA Surcharge Rate and Deriving Receipts Thresholds, announces the rate and deriving receipts thresholds applicable to the Article 9-A Metropolitan Transportation Business Tax Surcharge (MTA surcharge) for tax years beginning on or after January 1, 2019, and before January 1, 2020.
Reporting property tax credits on 2018 income tax returns
Your clients may be required to report property tax credits on their 2018 income tax returns if:
- they received a check in 2018 for the property tax relief credit or STAR credit; and
- they itemize their 2018 income taxes or live in Yonkers.
Visit How to report your property tax credits for more information. To verify whether your client received a check for 2018, use our Property Tax Credit Lookup.
Update on Enhanced STAR Income Verification Program
New for 2019, your clients who receive Enhanced STAR exemptions are required to enroll in the Income Verification Program (IVP). Seniors who receive the STAR credit check from New York State or who previously enrolled in the IVP do not need to take any action unless we contact them.
Seniors who are not required to file income tax returns do not have to do so to enroll in the IVP. Beginning this month, we will send income worksheets to Enhanced STAR recipients from whom we need additional information to confirm their income eligibility.
Upcoming due dates
01/22/19: Sales tax returns for monthly filers
01/31/2019:
- employers' quarterly MCMT returns
- employers' quarterly combined withholding, wage reporting, and unemployment insurance returns
02/20/2019: Sales tax returns for monthly filers
