The New York Department of Taxation and Finance has issued an important notice for personal income taxpayers declaring that federal extension forms will no longer be accepted in place of the state form.
The department noted that effective for tax years 2011 and beyond, a copy of federal Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, or Form 7004, Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns, will no longer be accepted in place of New York Form IT-370, Application for Automatic Six-Month Extension of Time to File for Individuals, or Form IT-370-PF, Application for Automatic Extension of Time to File for Partnerships and Fiduciaries.
Previously, taxpayers were allowed to submit a copy of federal Form 4868 in place of Form IT-370, or federal Form 7004 in place of Form IT-370-PF, if they expected to receive a refund or anticipated having no amount of New York state, New York city, or Yonkers income tax, or state or local sales or use tax, remaining unpaid as of the due date of their return.Important Notice N-11-16, New York Department of Taxation and Finance, December 2011
Individual Income Tax Changes
Under the legislation, for joint filers in taxable years beginning after 2011 and before 2015, taxpayers with New York taxable income of $40,000 to $150,000 will be taxed at 6.45% (previously, 6.85%); taxpayers with New York taxable income of $150,000 to $300,000 will be taxed at 6.65% (previously, 6.85%); taxpayers with New York taxable income of $300,000 to $2 million will be taxed at 6.85% (previously, 7.85% to 8.97%); and taxpayers with New York taxable income over $2 million will be taxed at 8.82% (previously, 8.97%).
For taxpayers with other filing statuses, the top 8.82% rate will apply to head of household filers with New York taxable income over $1.5 million and to single filers with New York taxable income over $1 million. The legislation also provides for a cost of living adjustment to the brackets and the standard deduction.
The Department of Taxation and Finance has announced that it is developing new withholding tables that will be effective on January 1, 2012.