Disregards any amount included in an individual taxpayer's federal adjusted gross income as a result of the federal child tax credit for purposes of calculating an individual taxpayer's federal income tax deduction.
Summary
Bill A04106 proposes to amend New York's tax law by disregarding the federal child tax credit when calculating an individual's federal income tax deduction. Specifically, it seeks to exclude any amounts included in a taxpayer's federal adjusted gross income that are solely a result of the federal child tax credit. This change would apply to taxable years beginning after December 31, 2025, thereby impacting how taxpayers report their income and deductions in the state of New York.
Impact
If enacted, this bill would alter the way New York residents calculate their federal income tax deductions, potentially leading to lower taxable income for those who claim the federal child tax credit. This could result in a decrease in state tax revenue, as taxpayers may have a higher net income after deductions. The bill aims to provide relief to families benefiting from the child tax credit, aligning state tax calculations more closely with the intent of federal tax benefits.
Sentiment
The sentiment surrounding Bill A04106 appears to be cautiously optimistic among proponents, who argue that it will provide necessary tax relief to families. However, there may be concerns regarding the potential impact on state revenue and the implications for future budgetary considerations, as indicated by the lack of committee discussions or voting history at this time.
Contention
Notable points of contention may arise from concerns about the fiscal impact of disregarding the federal child tax credit on state revenues. Some lawmakers may argue that while the bill provides immediate relief to families, it could lead to budget shortfalls in the future, impacting funding for essential state services. The debate may be split between those advocating for tax relief and those focused on maintaining state revenue stability.
Establishes a personal income tax deduction for the interest paid on student loans by individual taxpayers having a federal adjusted income of between $65,000 and $125,000, and married taxpayers filing jointly having a federal adjusted income of between $130,000 and $250,000.
Taxation, income tax, exclusion of enhanced federal child tax credits from American Rescue Plan Act from calculation of federal income tax deduction for tax year 2021, to provide an extension of the due date for certain taxpayers, Secs. 40-16-3.1, 40-18-39.2 added.
Taxation, income tax, exclusion of enhanced federal child tax credits from American Rescue Plan Act from calculation of federal income tax deduction for tax year 2021, to provide an extension of the due date for certain taxpayers, Secs. 40-16-3.1, 40-18-39.1 added.