The state of New York has made the following tax law changes for tax year 2024:
Expanded Representation in Tax Appeals
Beginning September 27, 2024, taxpayers can now choose anyone aged 18 or older to represent them in appeals before the Division of Tax Appeals.
Additional Empire State Child Credit Payments
Resident taxpayers who filed their 2023 returns on time and received a credit of at least $100 received an additional payment in August 2024. These payments are not reportable on 2024 state tax returns.
Amended Return Review During Appeals
For tax years starting January 1, 2024, the Department of Taxation and Finance may address amended returns for the same year that a taxpayer has filed an appeal related to a deficiency or refund denial.
Servicemembers Civil Relief Act Filing Options
Married servicemembers and their spouses can elect to file state taxes using the servicemember’s or spouse’s residence, or the servicemember’s duty station, regardless of the marriage date.
Itemized Deduction Limitation Extended
The limitation on itemized deductions for taxpayers with incomes over $10 million is extended through 2029.
Expanded 529 College Savings Plan Uses
Qualified withdrawals now include payments for student loans and rollovers to Roth IRAs, effective September 5, 2024.
Tax Shelter Reporting Extended
Reporting requirements for tax shelter disclosures and related penalties are extended through July 1, 2029.
Metropolitan commuter transportation mobility tax (MCTMT) rates for self-employed individuals:
The Metropolitan Commuter Transportation District (MCTD) is divided into two zones for purposes of calculating the MCTMT for self-employed individuals.
- Zone 1 includes the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, and Richmond (Staten Island).
- Zone 2 includes the counties of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester.
For tax years beginning on or after January 1, 2024, the MCTMT rates for self-employed individuals engaging in business within the MCTD are:
- .60 % (.0060) of the net earnings from self-employment that are attributable to the MCTD within Zone 1, if such earnings exceed $50,000 for the tax year, and
- .34% (.0034) of the net earnings from self-employment that are attributable to the MCTD within Zone 2, if such earnings exceed $50,000 for the tax year.
Note: The $50,000 thresholds are computed on an individual basis for each zone, even if you file a joint income tax return.